TAIPEI (Taiwan News) — Conflict in the Taiwan Strait has been listed among the top eight risks for the global economy in 2022 by Bloomberg.

The report, released on Monday (Dec. 13), lists eight risks in total — Omicron, inflation, raised interest rates, a Chinese economic downturn, European politics, Brexit, food prices, and geopolitical conflict — ranked in that order. Taiwan is the main topic of discussion under geopolitical conflict.

“Any escalation between mainland China and Taiwan, from blockade to outright invasion, could draw in other world powers — including the U.S.” the report reads.

“A superpower war is the worst case, but scenarios short of that include sanctions that would freeze ties between the world’s two biggest economies, and a collapse in Taiwan’s production of the semiconductors that are crucial to global output of everything from smartphones to cars,” it goes on.

Despite being in dire geopolitical straits, Taiwan also gets a more positive mention elsewhere in the report. Should the Federal Reserve raise interest rates, potentially crashing emerging markets, Bloomberg predicts Taiwan, along with two other economies, will fare better owing to its little debt and strong current-account balances.