Trump’s Return Raises Investor Fears Over China-Taiwan Conflict Risk

Foreign investors once dismissed the idea of a Chinese invasion of Taiwan as highly unlikely. However, the return of Donald Trump to the U.S. presidency has reignited concerns, transforming what was previously considered an improbable scenario into a potential geopolitical tail-risk. While investors increasingly view conflict over Taiwan as a scenario worth preparing for, many admit they lack viable strategies to effectively hedge against its global economic impact. The uncertainty underscores how shifting U.S. foreign policy stances are reshaping risk assessments in global markets.