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Significance

China's escalating use of cyberattacks on Taiwan reflects its growing unease over the island’s political and economic drift away from Beijing. Relative to other policy tools, cyberattacks help China prepare to block Taiwan’s external communications in the event of a war.

Impacts

China’s persistent cyberattacks will increase the Taiwanese government’s expenditure on cybersecurity.

Both the public and private sectors in Taiwan will acquire more cybersecurity talent from overseas.

Ongoing cyberattacks may damage domestic and foreign investors’ confidence in doing business in Taiwan.

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