> The U.S. may come to the aid of Taiwan. The big question is to what extent. All pre-revolution government debt has been in default since the revolution. Chi

> The U.S. may come to the aid of Taiwan. The big question is to what extent. All pre-revolution government debt has been in default since the revolution. China claims it is the responsibility of Taiwan and Taiwan claims it is the responsibility of China. They owe many trillions to bondholders all over the world. If the two merge, they can't dodge the claims anymore and still be part of the world financial system. It will have to be negotiated, and US law allows the government to collect on behalf of American bondholders. Any settlement will be very painful for China if they insist on taking Taiwan by force.