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Taiwan bets on diplomacy and deterrence to prevent Taiwan Strait conflict
Taiwan, which produces over 90% of the world's most advanced chips, would be at the epicentre of a major global economic shock if a military conflict with China erupted. Taipei is combining defence build-up with active diplomacy and deeper ties with the US and Europe to deter Beijing. Analysts say strategic ambiguity and China's economic dependence on Taiwanese semiconductors remain key stabilising factors.
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