If tensions over Taiwan escalate into a full-scale conflict, the world economy, according to Bloomberg calculations, will suffer losses of $10 trillion, which is about 10% of global GDP. This is much more than the losses from the Ukrainian conflict, the coronavirus pandemic and the global financial crisis, the publication notes.

Analysts at Bloomberg Economics have modeled two scenarios for the development of the situation on the peninsula. In one of them, China launches a military operation against it, to which the U.S. responds by intervening; losses for the global economy in this case are estimated at 10.2%, for the U.S. - 6.7% of GDP. In the second scenario, China undertakes an economic blockade against Taiwan, cutting it off from the rest of the world. This would result in a 5% drop in GDP globally and 3.3% for the US.

The greatest losses for the global community will arise from the interruption of semiconductor supplies from Taiwan, which is the world's main producer of semiconductors. The production of laptops, mobile devices, automobiles and other industries dependent on Taiwanese chips will be hit.