‘One China’: Taiwan Conflict

Because of the tremendous amount of trade and financial interaction betw...

Suggestion by Tim Plaehn on 2007-12-31 15:09:38

Because of the tremendous amount of trade and financial interaction between the U.S. and both Taiwan and China, I would think increased tension, not to mention conflict, would be very bad for the U.S. stock markets. I doubt whether any company selling arms would see there stock price benefit in the face of what I believe would be a tremendous downturn in stocks overall. I would think a China-Taiwan conflict would send money towards precious metals and Swiss Francs. The other side of the coin is that the increased commercial interdependence should significantly reduce the odds of a future conflict.

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