A recent report released by the Foundation for Defense of Democracies has raised concerns about possible non-military tactics that China could use against Taiwan. The report suggests that Beijing could wage an economic and cyber war to force Taiwan to surrender without direct military action. The simulation exercises conducted by the FDD and Taiwanese experts highlighted potential moves by Beijing, such as disinformation campaigns and cyber attacks on infrastructure, which could pose a significant challenge for the U.S., Taiwan’s biggest ally.
China has a longstanding goal of taking Taiwan, by force if necessary, although Chinese President Xi Jinping has expressed a desire to achieve this goal peacefully. Tensions in the Taiwan Strait have escalated since 2016, prompting the U.S. to increase its support for Taiwan. Washington is committed to providing Taiwan with necessary military hardware for its defense and views maintaining peace in the strait as essential for upholding the rules-based world order and supporting democratic allies like Taiwan.
President Joe Biden has indicated a willingness to defend Taiwan in the event of an armed attack from China, but the U.S. has yet to develop a plan to respond to non-military tactics. This lack of preparedness gives Beijing flexibility to undermine Taiwan through economic coercion and other non-military measures. The FDD researchers highlighted the need for the U.S. to develop a playbook of options to counter China’s actions and improve coordination with allies to strengthen resilience against economic coercion.
The simulation exercises also identified potential moves by Beijing, including conducting psychological wars, imposing bans on Taiwanese products, raising tariffs, short-selling Taiwanese stocks, and targeting critical infrastructure. Recommendations from the report include diversifying energy imports, relocating businesses away from the mainland, developing new markets, and building alliances. The Taiwan Academy of Banking and Finance emphasized the importance of strengthening Taiwan’s financial resilience to counter potential destabilization by China.
Experts have warned that Beijing is expected to intensify non-military measures against Taiwan in the coming months and years. It is crucial for the U.S. and Taiwan to work with allies and partners to enhance collective resilience against China’s economic coercion and other tactics. The report emphasizes the need for proactive measures to counter potential threats and protect Taiwan’s sovereignty. The collaboration between FDD and Taiwanese experts underscores the importance of strategic planning and preparedness in the face of evolving challenges in the Taiwan Strait.
