The people of Taiwan are prepared to defend their self-ruled island against a potential invasion by mainland China, according to Taiwan’s de facto ambassador to the United States. In addition, a report from the Foundation for Defense of Democracies (FDD) warns that Beijing may attempt to annex Taiwan through economic warfare.
When asked about the readiness of Taiwanese citizens to fight back against increased aggression from Beijing, Taiwan’s representative Alexander Yui responded affirmatively, citing the example of Ukraine. The FDD report suggests that rather than a military invasion or blockade, the Chinese Communist Party (CCP) is more likely to pursue a “cyber-enabled economic coercion campaign” as its strategic approach for annexing Taiwan.
Earlier this year, FDD researchers collaborated with banking and finance experts in Taiwan to simulate non-military moves by Beijing. Scenarios explored included import restrictions on Taiwanese products, cyber attacks on critical infrastructure, and disruption of commercial traffic through missile tests. The exercise demonstrated that Beijing could exert significant pressure on Taiwan without crossing any redlines with Washington or other allies.
Tensions in the Taiwan Strait have been escalating since 2016 when China began increasing diplomatic and military pressure on the island. In response, the United States has stepped up its support for Taipei. While President Joe Biden has indicated his willingness to defend Taiwan in case of an armed attack from China, there is currently no plan in place to respond effectively to non-military tactics employed by Beijing.
The FDD report highlights one scenario where CCP leaked reports of upcoming military exercises and used influence operations alongside economic coercion strategies such as shorting Taiwanese stocks and triggering real estate sell-offs. The researchers emphasize that building resilience in infrastructure, energy systems, economy, and civil society is crucial for Taiwan’s defense against these tactics.
Furthermore, they recommend that Washington assist in enhancing Taiwan’s resilience while improving response times among allied democracies against CCP coercion. It is clear that Xi Jinping views reunification with Taiwan as an ideological imperative and will employ various coercive measures—economic, cyber-related,and military—to undermine its resilience.
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