TAIPEI (Taiwan News) — A US think tank warned against overreliance on Qatar for liquefied natural gas as it is prone to influence from Beijing.

After a tabletop exercise, the Foundation for Defense of Democracies said Sunday that nearly half of Taiwan’s electricity relies on LNG, with all LNG and coal fully imported, and energy reserves limited, per CNA.

China could easily push Taiwan to its limits by waging large-scale economic warfare, selectively enforcing maritime blockades, and applying diplomatic pressure on Taiwan’s energy suppliers, thereby weakening societal resilience. The FDD said any disruption in Taiwan’s LNG supply would have immediate global economic and diplomatic repercussions.

Taiwan would then face the difficult choice between supplying electricity to households and hospitals or to the semiconductor industry. The latter is the backbone of Taiwan’s economy and a key tool in global diplomacy.

China could use cyber, diplomatic, and economic tools, along with maritime power, to put Taiwan’s power grid at risk. Taiwan must immediately diversify its energy imports, such as rethinking importing 30% of LNG from Qatar, “a country susceptible to Chinese pressure.”

The think tank advised that even at higher costs, Taiwan should sign energy contracts with the US, develop more renewable energy, and invest in a more secure grid design. By signaling a willingness to supply more LNG, Washington would make clear to major energy suppliers that if they bow to Beijing’s pressure, the US is ready to step in and offset Taiwan’s economic losses.

QatarEnergy announced last year that it had agreed to supply Taiwan’s CPC Corporation LNG under a 27-year contract. The contract value was not disclosed, but Bloomberg reported that Qatar will supply CPC with 4 million tons of LNG annually under the agreement.

In addition, the FDD warns that China is already “conducting operational preparation of the battlefield in cyberspace,” implanting malicious software and backdoors in other countries’ critical infrastructure. Taiwan must convene key infrastructure providers from both the public and private sectors, such as ports, aviation, and crane operators, to discuss ways to strengthen both cyber and physical defenses.

The Wall Street Journal reported last year that Shanghai Zhenhua Heavy Industries’ cranes account for nearly 80% of ship-to-shore cranes in US ports. These cranes are cost-effective yet equipped with sophisticated sensors that can track container origins and destinations, raising concerns that China could use them to monitor the movement of materials supporting global US military operations.

The FDD’s report stressed the need for Taiwan to build societal resilience to withstand a China-led siege. Beijing’s logic is that persistent pressure could collapse Taiwan politically, making the population’s ability to endure coercion crucial.

If Taiwan can withstand the initial pressure, strengthen energy partnerships early, and avoid being portrayed by Beijing as “provocative,” China’s advantages will gradually diminish. However, to buy time, the report concluded that Taiwan must immediately invest in strengthening cybersecurity, energy security, and societal resilience.