Hormuz chaos sparks warning: China could strangle Taiwan without firing a shot
China may not need to launch a military invasion of Taiwan to trigger a global economic crisis, according to a new analysis that draws lessons from recent disruptions in the...
By Fox News · Fox News
China may not need to launch a military invasion of Taiwan to trigger a global economic crisis, according to a new analysis that draws lessons from recent disruptions in the Strait of Hormuz. As Iran showed earlier in 2026, even limited interference with a key shipping choke point can rattle global markets: spiking prices, disrupting supply chains and shaking investor confidence. Analysts warn Beijing could apply a similar strategy to Taiwan, the world’s most critical hub for advanced semiconductors. If China moved to choke off Taiwan tomorrow, "Americans with 401(k)s would feel it right away," Stanford Hoover Institution fellow Eyck Freymann told Fox News Digital. TAIWAN OPPOSITION LEADER MEETS XI IN BEIJING AS TAIWAN DEFENSE FIGHT INTENSIFIES A disruption to Taiwan’s semiconductor supply could trigger a sharp sell-off in global markets, hitting major U.S. technology stocks that make up a significant share of retirement portfolios. While much of Washington’s focus has long centered on deterring a Chinese invasion of Taiwan, Freymann argues the greater risk may be a more ambiguous strategy — using economic pressure, military signaling and market panic to isolate the island without triggering a full-scale war. He expands on that argument in his new book, " Defending Taiwan: A Strategy to Prevent War with China, " published Tuesday, warning Beijing could "squeeze, isolate, and coerce Taiwan into submission without firing a shot." China significantly has increased military activity around Taiwan in recent years, conducting large-scale exercises that simulate encirclement and blockade scenarios. Analysts say those drills reflect a growing emphasis on options short of invasion. That analysis comes as a new Annual Threat Assessment released by the Office of the Director of National Intelligence found that Chinese leaders "do not currently plan to execute an invasion of Taiwan" and "do not have a fixed timeline for achieving unification." The finding has fueled debate in…