The context of war in Ukraine proceeds and the climate of geopolitical tension in Taiwan adds uncertainty to the world economy. However, the essential query is: will Taiwan be a phenomenon of deja vu (Ukraine conflict reoccurrence)?
In 1949, China fell apart when the Communist army defeated the Nationalists, become refugees in Taiwan and self-proclaimed as a novel independent state. This geopolitical strategy has been accumulating tension for decades: at one end, mainland China and the island which Beijing claims as its own territory. However, in light of the events between Russia and Ukraine, a question arises: whether Beijing intends to repeat Russia’s behaviour; because, it has increased military movements along the coast of Taiwan.
Historically, occurred several attempts to standardize the territory through businesses with the participation of Taiwan previous leader. However, the current leader Tsai Ing-wen, a member of the progressive democratic party, is not so interested in such union. Thus, it is believed that China will take military measures to resolve the conflict, which has been dragged over recent decades.
As a result of the conflict between Ukraine and Russia, an increase of natural gas and fuel prices (and other goods, as explained in prior publications) produced an inflationary spiral. At the moment, there are many investment opportunities with high earning potential with a similar level of risk, because of geopolitical instability.
Due to uncertainty, additional market volatility is expected, so do not choose short-term strategies or have a valid financial support. Physical assets like gold should not change compared to financial assets associated to companies.
