US Warns Europe Taiwan Conflict Could Bring $2.5Trln In Annual Economic Losses - Reports

MOSCOW (UrduPoint News / Sputnik - 11th November, 2022) The United States has warned European countries that the conflict over Taiwan would take a huge toll on the global economy and could result in $2.5 trillion in annual economic losses, the Financial Times reported on Friday, citing sources familiar with the matter.

The US State Department has shared research commissioned from the research firm Rhodium Group, with European Commission and European government officials, and warned them that the Taiwan conflict would have "significant implications" for member states, according to sources cited by the newspaper.

At the same time, Washington is trying to figure out how to use sanctions against China in the event of any military action against Taiwan, the report said. The US and the EU had begun talks on preparation for possible conflict over Taiwan, two officials told Financial Times.

However, some American and European officials believe that global economic damage from the Taiwan conflict is "necessary to rally international support for deterring China," the report said.

At the end of September, David Cohen, the deputy director of the US Central Intelligence Agency, said that Chinese President Xi Jinping allegedly told his military that he wants to take control of Taiwan by force by 2027.

The situation around Taiwan escalated after US House Speaker Nancy Pelosi visited the island in early August. Beijing condemned Pelosi's trip, which it regarded as a gesture of support for separatism, and launched large-scale military exercises in the vicinity of the island. Despite this fact, several countries, including Germany, have sent delegations to the island since then, further increasing tensions in the Taiwan Strait.

Taiwan has been governed independently from mainland China since 1949. Beijing views the island as its province, while Taiwan � a territory with its own elected government � maintains that it is an autonomous country but stops short of declaring independence. Beijing opposes any official contacts of foreign states with Taipei and considers Chinese sovereignty over the island indisputable.