Infographic: Measuring risk exposure to China-Taiwan tensions

Contingency planning for possible disruptions caused by rising geopolitical tensions is becoming an increasingly important factor in business strategy planning. In East Asia, one of the key geopolitical risks is China-Taiwan tensions. If escalated, the disruption could extend beyond the region and influence global economic growth and industry performance.

We have developed a globally consistent framework showing cross-country GDP vulnerabilities to an escalation in China-Taiwan tensions, factoring in three key channels of risks: trade exposure to Taiwan and mainland China, wider economic and industry reliance on semiconductors for producing output and price ramifications of shortages and disrupted shipping.

What you will learn:

• Over 90% of high-end semiconductors are manufactured in Taiwan.
• Although Taiwan’s semiconductors are mostly used in advanced manufacturing, a supply crunch would ripple through all industries.
• East Asia, Germany, US are among the most vulnerable.