Taiwan has become a focal point for the U.S.-China conflict, with the Pentagon turning its attention towards a hypothetical conflict with China — referring to it as the “sole pacing threat” — and China continuing combat and blockade drills around the island.

However, despite China’s demonstrations of military power, Taiwan’s unique economic niche and geographic position make it a particularly thorny target for Beijing. The Chinese Communist Party’s legitimacy rests largely on the robust economy it has built, and the direct economic repercussions of an invasion or blockade of Taiwan stand to shatter the foundations of Beijing’s domestic power.

There are three non-military conditions that make a full military assault or blockade of Taiwan a nonviable option for the CCP. First is the global importance of Taiwan’s semiconductor manufacturing base, second is the impact on trade and the shipping industry running through the Taiwan Strait and Luzon Strait, and third is China’s own less-than-favorable economic conditions.