Research: Potential conflicts in Asia also affect the Netherlands

A potential geopolitical crisis in East Asia could seriously disrupt the supply of raw materials from China and chips from Taiwan. And this could have major consequences for the social stability of the Netherlands, warn researchers at The Hague Center for Strategic Studies (HCSS).

“MRI scanners, F35 fighter jets, wind turbines, electric cars and iPhones all rely on critical raw materials and semiconductors,” the report says. If the supply of raw materials or chips is disrupted, the medical sector or the Dutch energy system, for example, may suffer. Because the mentioned products will soon be sold out and the prices may rise sharply, comparable to the increase in energy prices after the Russian invasion of Ukraine.

For a study commissioned by Dutch police, the researchers looked specifically at two possible crisis situations that could arise in the coming years as a result of current tensions in the world between superpowers China and the United States. It concerns China’s embargo of critical raw materials and the Chinese maritime blockade of Taiwan. “Both scenarios have serious consequences,” the researchers said.

In the report, the HCSS recommends that the Netherlands and the EU as a whole take swift “large-scale” action by reducing manufacturing dependence on East Asia. This can make the society here more resilient to potential shocks and prevent major damage to social stability.