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So the West will issue sanctions but basically do nothing. I get it we don't want a world war.
I'll come back tomorrow I don't think this topic will end well.
https://www.investopedia.com/articles/investing/072915/impact-chinese-economy-us-economy.asp
The west would flip out, but do nothing, but sure the prices of some things will probably skyrocket. But that wouldn't be due to any real economic factors, import/export would experience minor swings sure. But they'd blow it all out of proportion so they can gouge people and profit off it, using the invasion as an excuse.
Business as usual.
Not at current levels of inflation and with feds polcies. It wont be even close to soft landing anymore. You would see "blood in street" and wont be just another business as usual nor for feds, nor for financials, economy or anyone involved. The implications are big because the way things are connected with china and current state of economy. A hard lending as beginning followed by multiple crisies at many levels. By time they figure out one crisis it will be already, hit by the next one. Going into war with china is equal opening the pandora box the impact will reverberating in so many levels, it wont even come close to the rest of crisis in past nor wars. If they think 2008 crisis was bad, this one will make that look like a joke just in first months.
Nobody's gonna go to war, the "invasion" would really just be more like an occupation. It'd last a few days to weeks while China buys off or kills Taiwanese leadership, then it's all over.
Effectively nothing will change for the people living there, they're already pretty repressed, it would just be "meet the new boss."
The West will still pretend it's some huge thing and businesses will price-gouge everyone they can. But unless people do some moronic blustery posturing and bridge-burning (which, admittedly, is possible) there is really no reason anything should change very much globally.
China would immediately want to reestablish all the same deals as before, just with themselves in charge, then turn around and go home and call it a day.
China is hybrid system. In fact if anything is more of family Feudalism by now.