If China’s military drills off the coast of Taiwan end, as scheduled, on Sunday and there is no further retaliation, this week’s flare-up in tension won’t have a direct economic impact. But it will have added urgency to efforts by China to make its economy less vulnerable to the sanctions that could follow a full-blown cross-Strait crisis. And it should have added impetus to efforts by multinationals to prepare for that eventuality too.
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