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Risks to Taiwan's Ability to Defend Against China Raise Concerns in the US

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Challenges to Taiwan's Defense Against China Highlighted in US Analysis

A new analysis from Congress's research arm highlights the potential obstacles that Taiwan may face in defending itself against a Chinese invasion. While Taiwan has been increasing its defense capabilities and has a strong defense relationship with the US, domestic political and infrastructure challenges could hinder its efforts. The report points out that Taiwan's critical infrastructure systems, such as energy, food, water, and internet, are vulnerable to external disruption. Additionally, civil defense preparedness is deemed insufficient, and the military faces difficulties in recruitment, retention, and training of personnel. China's military is actively training for various scenarios, including missile strikes, territory seizures, blockades, and amphibious landings, which pose significant risks to Taiwan. Furthermore, China's "gray zone" pressure tactics, which fall below the threshold of an all-out attack, are eroding Taiwan's military advantages and readiness. The report also raises concerns about China's peacetime military operations near Taiwan, which could obscure Beijing's intentions and shorten Taiwan's response time in the event of an actual invasion.

Implications of Taiwan's Defense Challenges for New Businesses

The recent report highlighting Taiwan's defense challenges against China's potential invasion could have significant implications for new businesses, particularly those operating in or with Taiwan.

Infrastructure Vulnerabilities

The report points out that Taiwan's critical infrastructure systems, including energy, food, water, and internet, are susceptible to external disruption. This could pose operational challenges for businesses heavily reliant on these infrastructures.

Political Instability

The domestic political challenges in Taiwan could lead to policy uncertainties, which might affect the business environment and regulatory landscape. New businesses need to factor in these potential changes while planning their strategies.
Security Concerns
The military threats from China, including missile strikes, territory seizures, and blockades, could lead to security concerns and disrupt business operations. Furthermore, China's "gray zone" tactics and peacetime military operations near Taiwan could create an unpredictable security environment, affecting business continuity and risk management plans. In conclusion, while Taiwan's increasing defense capabilities and strong defense relationship with the US are reassuring, the highlighted challenges necessitate that new businesses operating in or with Taiwan adopt a proactive approach in managing potential risks and disruptions.
Story First Published at: https://financialpost.com/pmn/business-pmn/us-sees-domestic-risks-to-taiwans-ability-to-fend-off-china
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