Stormy waters: Investors 'watching China-Taiwan tensions closely'

Military intervention 'unlikely' in short term

Investors are keeping a close eye on the situation between China and Taiwan, with one industry commentator stating that a Chinese invasion of the island “would be devastating for the global economy”.

Although in the near-term the risk of war remains unlikely, in the medium term it is a different story. Tensions between both governments continue to rise as China escalates its military posturing. Earlier this month, a record number of Chinese military planes - including nuclear-capable bombers - reportedly entered Taiwan's air defence zone.  When China tested a passenger ferry to carry over 1,000 troops and hundreds of vehicles on 14 October, it marked the latest in a series of ongoing aggressions and was seen as a rehearsal for a potential attack. On 18 October, China condemned ...