TOKYO -- A report on the impact of possible Western economic sanctions on China in the event of a Taiwan emergency sent shock waves among people concerned in the State Council, China's cabinet, in Beijing in April.
The report analyzed what would happen if the U.S., Europe and Japan imposed sanctions on China to contain its economy, as they did to Russia over its invasion of Ukraine. "If the U.S. and allies move to slap sanctions, our country will return to a planned economy closed off to the world," the report said.
Using the Organization for Economic Cooperation and Development's Trade in Value Added (TiVA) database, Nikkei estimated the amount of economic loss that would be caused if trade between China and major countries ground to a halt.
According to the estimates, a total of $2.61 trillion would evaporate -- an amount equal to 3% of the world's gross domestic product. China's GDP is 10 times larger than Russia's.
All countries, companies and individuals are connected to China in one way or another. Precisely because this is the age of "Great China," economic sanctions against the country would be a double-edged sword. How could the worst be prevented without drawing such a sword? If it could not be done, the world would face an immeasurable crisis. Explore the full story here.