Source link : https://asia-news.biz/asia/taiwan/carneys-diversification-plan-faces-crisis-if-china-attacks-taiwan/
In a recent commentary for Yahoo News Canada, political columnist John Ivison warns that Finance Minister Chrystia Freeland’s economic diversification strategy, championed by Governor of the Bank of Canada Tiff Macklem and former Finance Minister Jim Carney, risks significant setbacks if geopolitical tensions escalate between China and Taiwan. Ivison argues that an armed conflict in the Taiwan Strait could severely disrupt global supply chains and undermine Canada’s efforts to reduce its dependence on Chinese trade, potentially plunging the country’s economy into turmoil.
Carney’s Diversification Strategy Faces Critical Risks Amid Rising China-Taiwan Tensions
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…
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Author : William Green
Publish date : 2026-02-03 02:58:00
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