This probably runs parallel with their China bank currently loading up on gold and silver. Once the blockade and invasion starts, everyone and their mother is going took run to silver and gold.
Taiwan makes up 20% of global semi capacity. And the Taiwan strait is a major trade artery, 20% of global maritime trade. We are talking a big hit to Nasdaq heavyweights, industrial automation, EVs etc.
Some models I’ve found show a drop in global GDP by 2.8%. (2008/COVID crisis was \~1-2%)
We don’t need a full scale invasion, the blockade alone is easier to maintain and gives China the control of global markets. This is something I’ll be watching closely in the weeks/months to follow.
