Mark Carney’s ambitious plan to diversify supply chains and investment portfolios away from China faces unprecedented challenges amid escalating geopolitical strain in the Taiwan Strait. Experts warn that any potential conflict would trigger severe economic repercussions, disrupting not only trade flows but also investment confidence globally. The intricate web of interdependence with China means Carney’s diversification effort might unravel, especially as companies hesitate to commit resources in volatile conditions.

Key vulnerabilities highlighted include:

  • Disrupted manufacturing hubs leading to supply shortages
  • Sharp decline in investor confidence impacting capital markets
  • Increased costs and delays in shifting supply chains to alternative regions
  • Heightened risk premiums, deterring long-term…