China-Taiwan: The risk of conflict and what HX Global recommends companies can do to prepare

Hingham, Massachusetts, UNITED STATES

BOSTON, June 23, 2022 (GLOBE NEWSWIRE) -- The Russian invasion of Ukraine has captured the attention of the US and its European allies. Based on expert observations HX Global has seen, some have warned that China might take the opportunity to make a similar move on Taiwan.

Relations between China and Taiwan have been on a deteriorating trend over the past few years. Since the split between Taiwan (Republic of China -ROC) and mainland China (People’s Republic of China -PRC), Beijing has long viewed the island of Taiwan as a rightful part of its territory and has expressed plans to reunify Taiwan with the mainland eventually. Despite occasional flare-ups in diplomatic tensions over issues such as Taiwan’s potential independence, both sides have maintained cross-strait relations, mutually benefiting their economies, trade, and cultural sectors over the past decades.

However, Taiwanese officials have described current tensions between the two as the worst in 40 years. On April 12, Taiwan’s military reportedly issued a civil defense handbook aimed at educating the public on what to do in case of nationwide emergencies such as military conflict. Taiwanese policymakers have also accelerated discussion around reforming its reservist and conscription training to increase the overall readiness of its military.

The successful reclamation of Taiwan as its territory would allow the Chinese government to use Taiwan as a strategic buttress against the “containment policy” by the US and its military allies such as Japan and South Korea. Reclaiming Taiwan will also allow China to expand its maritime-territorial boundaries in the region and give it greater power projection in the South and East China Sea, as well as further into the western Pacific. US military officials are concerned that this would pose a threat to US military bases as far as Guam and Hawaii, as well as to US “freedom of Navigation (FON)” operations in the region.

US engagement with Taiwanese leaders has also hardened China’s “One-China Policy” stance, provoking an increased frequency of Chinese naval drills in nearby waters as well as military flight incursions into Taiwan's air defense identification zone (ADIZ). On June 21, twenty-nine Chinese aircraft, including six H-6 bombers and an electronic intelligence gathering plane, entered Taiwan’s southwestern ADIZ.

Should conditions deteriorate, businesses should:

  • Stay abreast of political developments and monitor reliable news or intelligence sources. Follow output from local media, embassy bulletins and establish a direct information network.
  • Ensure that detailed contingency options, business continuity, crisis management, and evacuation plans are in place.
  • Maintain an organizational public stance of neutrality to avoid unwanted attention where it does not compromise wider business initiatives.
  • Establish an internal communications plan. Consider setting up instant messaging groups where information can be quickly disseminated to employees in the event of a deterioration of the security environment.
  • Discuss and review Political Risk Insurance (PRI) coverage for policyholders in case of business losses in the event of a China-Taiwan conflict.

Download our comprehensive special advisory for more information. If you require assistance, please reach out directly to Our Global Security Operations Centre will be happy to help.

About HX Global
HX Global, the U.S. division of Healix International, has been providing assistance and travel risk consultancy solutions to some of the world’s most well-known corporations, governments and NGOs for over two decades. HX Global’s fully integrated team has the skill and experience to address the myriad risks facing today’s travellers. Its combined medical, travel, and risk management expertise places HX Global in the unique position to deliver comprehensive, cost-effective solutions without compromising high-quality support for the end-user. To learn more, please visit


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