“A report on how Western sanctions might impact China sent shock waves through the State Council, China’s cabinet, in April.
The report, prepared by China’s Ministry of Public Security and Ministry of State Security, analyzed what would happen if the U.S., Europe and Japan were to react to a Taiwan emergency by imposing economic sanctions on China, as they did to Russia over that country’s invasion of Ukraine.
“If the U.S. and allies move to slap sanctions,” the report says, “our country will return to a planned economy closed off to the world…”
Global trade shrank by 8% due to the impact of the coronavirus pandemic. The decline in global trade as a percentage of GDP stood at 2%. Although a simple comparison is impossible, a Taiwan emergency could cause a more serious global depression.”