Managing Geopolitical Risks: Taiwan

Identifying sectors and companies most vulnerable in a worst-case scenario can help in strategizing risk mitigation.

In light of the escalating military activities by China's People's Liberation Army (PLA) around Taiwan—described by Taiwan's naval commander, Admiral Tang Hua, as an "anaconda strategy" to surround and squeeze the island—it's crucial to reassess the potential economic impacts.

A recent Foreign Affairs essay frames China’s long game as a campaign to dominate the “frontiers” that determine future power: the deep sea, the Arctic routes, outer space, the digital standards stack, and the plumbing of global finance. An investor can’t “vote” in those arenas—but we can allocate capital toward the companies building the counterweight: secure allied networks, undersea superiority, and space-based sensing.