Economic impact of Taiwan flare-up seen as manageable, but risks linger for S'pore and region

An aerial view shows an empty Keelung Harbour in Taiwan, as China's People's Liberation Army holds a four-day live fire drill around the island, on Aug 4, 2022. PHOTO: AFP
China's People's Liberation Army conducts a long-range live-fire drill into the Taiwan Strait from an undisclosed location on Aug 4, 2022. PHOTO: REUTERS
Tourists look on as a Chinese military helicopter flies past Pingtan island, on Aug 4, 2022. PHOTO: AFP
A Taiwanese coast guard personnel stands guard at a station along the coast of Taiwan, on Aug 4, 2022. PHOTO: EPA-EFE
Smoke trails from projectiles launched by the Chinese military are seen as tourists look on from Pingtan island, on Aug 4, 2022. PHOTO: AFP
A large screen on a building showing promotion for the Chinese People's Liberation Army is seen past pedestrians in Beijing, on Aug 4, 2022. PHOTO: AFP
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SINGAPORE - The economic impact of the geopolitical tensions over Taiwan appears manageable so far but analysts fear there could be some short-term glitches in trade flows.

They also said that in the long run, the widening gulf between the world's two largest economies - China and the United States - will reinforce the ongoing shift in global trade and investment flows towards safer pastures, such as the Asean region, a trend with implications for Singapore.

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