EIU defines a conflict as a "full-conflict scenario, involving direct military participation by China, Taiwan and the U.S." and based on the presumption of an escalation by China. To be clear, the EIU assesses the risk of a direct Chinese military assault on Taiwan as "very unlikely." The EIU also named a few "severely exposed markets": Australia, Malaysia, Thailand and Vietnam, as well as Hong Kong. In addition, both Malaysia and Vietnam would be exposed to a potential conflict with China if cross-strait hostilities spilled over and ignited a conflict in the South China Sea. The EIU said a conflict will cut off Taiwan's foundries, and at best, air and maritime links will be disrupted.

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Persons: Ceng Shou Yi, Xi Jinping Organizations: Getty, Nurphoto, Economist Intelligence Unit, Nationalist, Taipei Representative, CNBC, Producers Locations: China, Taipei, Japan, Canada, India, Beijing, Taiwan, South Korea, Philippines, Taiwan Strait, U.S, Australia, New Zealand, Thailand, Singapore, Malaysia, Vietnam, Hong Kong, China . Hong Kong, British, South China, South, United Kingdom, United States, Canberra, Asia