TAIPEI (Taiwan News) — In the event of a conflict between Taiwan and China, Japan, the Philippines, and South Korea would be most at risk because of the impact on supply chains, according to a whitepaper published by the Economist Intelligence Unit (EIU) on Wednesday (June 28).

The document analyzed the potential results of a conflict involving China and the United States over Taiwan. It found that in addition to the three countries closest to the area, Australia, Hong Kong, and some Southeast Asian countries would also be exposed to “severe vulnerability.”

The EIU, a division of The Economist magazine, found that the internet in Southeast and Northeast Asia and information and communications technology (ICT) production would suffer grave effects, CNA reported. In the short term, no country could replace Taiwan for the manufacturing of semiconductors, but South Korea and Japan might be a factor in the long term.

Despite the presence of risks related to Taiwan, corporations were unlikely to withdraw their supply chains from the region on a large scale, as it still presented plenty of business opportunities, the EIU report said. In addition, countries further away from the Taiwan Strait, including India, Indonesia, and the Pacific island nations were less likely to feel the impact of a military conflict.