If China invades Taiwan, the most immediate effect on the stock market will be that technology stocks, led by Apple Inc will be basically almost annihilated in the space of several weeks.
The bedrock of information technology -> computer chips are more than 50 % produced in Taiwan.
All information technology services are basically a leveraged play on the computer chips industry.
Actually, inflation will shoot up again since computer chips ares used in cars, TV sets, washing machines, climate control units etc.
Alternative production venues will be found though, in 3 to 5 years.
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