starcraft said:
I don't think it's that goods would be embargoed. I think that it is the fact a lot of China's wealth is in the form of Western debt they hold. If there was a war large enough and substantive enough, it is possible the West would deliberately default on all this debt, resulting in the greatest instantaneous transfer of wealth in history (a couple of currently non-existent trillion dollars Europe and America would declare will never be repaid). |
The "transfer of wealth" would never occur because China would end up holding T bonds that would amount to nothing. The US Congress, specifically the US House of Representatives could simply pass a bill stating something along the lines, "Countries or organizations whom the US is at war with who hold US debt, treasury or otherwise, have revoked all value on their debt by threatening national security interests."
Same would be done in every single European country. A war involving China as an adversary of the West would be a godsend for deficit hawks, yet the lowest layer of hell for big business who manufactures in China.







