October 22, 2022

How Tsmc and US-China Tensions May Dictate Fate of Global Economy

Featuring Martijn Rasser

Source: Business Insider

Journalists Avery Hartmans, Jacob Zinkula

The effects of such a halt would be "economically devastating," says Martijn Rasser, a former senior intelligence officer at the CIA who is now a security and technology expert at the Center for a New American Security, a left-leaning think tank.

"You'd be looking at trillions of dollars in economic losses," he told Insider. The US National Security Council agrees, and in July the US commerce secretary said the US would face a "deep and immediate recession" if American businesses no longer had access to these chips.

Some experts have speculated that, in the event of an invasion, the chip-manufacturing facilities would be intentionally destroyed so China couldn't access them. In a US Army journal article published in December, the academic Jared McKinney described this strategy as the "broken nest" — another way to put it is mutually assured destruction.

Read the full story and more from Business Insider.

Authors

  • Martijn Rasser

    Senior Fellow and Director, Technology and National Security Program

    Martijn Rasser is a Senior Fellow and Director of the Technology and National Security Program at CNAS. Prior to joining CNAS, Rasser served as a senior intelligence officer a...