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An EU type agreement will keep peace for some time. Remove all trade barriers between two countries, have a treaty preventing any side to be used militarily by third party, no attacking each other and free movement of all vessels through each other's seas. Maybe few more

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Thats just buying China more time until they can get their chip manufacturing to at least a similar ballpark. Then Taiwan has no cards left to play. China can cripple TSMC depriving the west of chips while they continue onwards.

"buying China more time". China has no time-pressure to attack immediately, but all the upside right now of pretending to a stable, sensible world leader. Treaty with Taiwan will keep the ego of One China, prevent it from naval blockade by Taiwanese territories and will remove one of the major territorial issues raised against it.

I don't know about that...don't they have massive overcapacity in many of their industries as well as ~25% youth unemployment? For all the mess the US is going through at least we are seeing it out in the open. China seems to be going through their own messes right now but it is behind the great wall. Will a treaty be enough or will their leaders falter and try to push for more. Guess we will see.

I don't think is about China, it's more about Winnie the Pooh's legacy.

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