Last month Admiral Phillip Davidson, Indo-Pacific Command, said that “I worry that they’re [China] accelerating their ambitions to supplant the United States and our leadership role in the rules-based international order. They’ve long said they want to do that by 2050, I’m worried about them moving that target closer. Taiwan is clearly one of their ambitions before that, and I think the threat is manifest during this decade. In fact, in the next six years.”

Now, I don’t know exactly what he meant by that statement, but I now see some buzz about China invading Taiwan in the next six years. For example: https://www.youtube.com/watch?v=N7TbBZlCTdg. Note that Gen. Jack Keene does not actually say that they will be invading Taiwan in six years.

Also see:

https://www.theguardian.com/world/2021/mar/10/china-could-invade-taiwan-in-next-six-years-top-us-admiral-warns

https://www.theguardian.com/world/2021/mar/23/taiwan-china-threat-admiral-john-aquilino

Note that Admiral John Aquilino “…disagreed with the outgoing Indo-Pacom commander Adm Philip Davidson’s recent comments that China could attempt to attack and take over Taiwan as soon as six years from now.”

Anyhow, is this really likely? I am going to briefly discuss the subject in two posts, this post focused on the “wherefores and why” of such an operation and a later post on the doing an actual invasion. 

A few caveats: 1) I am no China expert, 2) I have never been involved is gaming or analyzing the defense of Taiwan, 3) I have no real “insider” knowledge of the subject at hand, and 4) I am not an economist. 

I do find it a little difficult to believe that the Chinese, whose economy is heavily dependent on trade, is going to do something that would seriously disrupt this trade. The economy is 20 percent dependent on “Exports of good and services.” Their five major trading partners are the U.S., EU. Japan, S. Korea and Taiwan (!!!). The 2018 figures show total trade of 4,107.1 billion. Of that the U.S. makes up 583.3 (14%), the EU makes up 573.08 (14%), Japan makes up 303.0 (7%), Hong Kong makes up 286.5 (7%), South Korea makes up 280.2 (7%), Taiwan makes 199.9 (5%), Australia makes up 136.4 (3%) and Vietnam makes up 121.9 (3%). Other trade partners account for around 40% percent of the total. Almost all of it must be transported by sea or air. Overland trading partners to China are limited primarily to Russia (84.2), North Korea and Mongolia, and places like Vietnam (121.9), Laos, Thailand, Burma, Thailand, Kyrgyzstan, Tajikistan, and nominally Afghanistan and of course, the subcontinent of Pakistan, India and Nepal via Tibet (India is 84.3). Only three of these places is listed as among their top 20 trading partners (Vietnam, India and Russia, which make up 7% of their trade, assuming they were doing it all overland).

https://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_China

Now, the question is whether or not their would be a full economic blockade. The international response was tepid when Russia seized Crimea. But seizing Taiwan is a whole lot bigger bite (24 million vice 2.4 million). Certainly they will loose the trade with Taiwan and the trade with the U.S., and maybe South Korea, Japan and EU. As taking Taiwan is almost invariably a “hot war” scenario, hard to see how things would continue as business as normal. Added to that, the U.S. Navy has absolutely superiority in the deep seas, so the U.S. could establish an effective blockade (See: U.S. Fleet versus Chinese Fleet | Mystics & Statistics (dupuyinstitute.org))

So as a minimum, we are probably looking at China losing 60% to 80% of its trade. This is at least 12-16% of its economy. As things in economies tend to ripple (like local consumer spending and services) then the potential economic impact on China is very significant.  

Are they really looking to destroy their trade in the next six years? It will have a big impact on their economy. Trade embargoes tend to drag on for a while. After the 1989 Tiananmen Square massacre, the trade embargoes were limited, and by the mid-1990s China there was no clear long-term impact. But, the trade impact of directly invading Taiwan would probably be worse than Tianamen Square, and it would involve direct military engagement with one or more of its major trading partners.

Added to that, around 60% of their oil is imported. This is done by sea. We could also interdict that. Now, their neighbor Russia does have oil, so this can be partially compensated for over time.

So, by embargo and even more effectively, by naval interdiction (which is certainly within our capability), we could possibly temporarily shut down 80% of their trade and 60% of their oil. If that was the case, then we are probably looking at something more like a 30-40% decline in their GDP. This depressed economy that could continue for several years.

When economies stagnate or decline, governments often get overthrown. Is this something they are willing to risk for the sake of taking Taiwan?

So the big question is: Is taking Taiwan so important to the current leadership of China that they were willing to take the hit and the risk that goes with it?