TAIPEI (Taiwan News) — China is more likely to launch an economic blockade against Taiwan than an all-out military attack, but the government is preparing for the former with the help of friendly nations, Deputy Foreign Minister Roy Chun Lee (李淳) told Bloomberg Friday (April 14).

His remarks followed three days of intensive military drills by China around Taiwan and the announcement by Beijing that it would close off a segment of airspace north of the democratic country for 27 minutes on Sunday (April 16). The military threats came after President Tsai Ing-wen (蔡英文) met United States House Speaker Kevin McCarthy during a stopover in California on April 5.

Lee said planning a response to an economic blockade had just begun, though Taiwan sped up the stockpiling of crucial products and minerals over the past two years. He saw concern from the private sector and from foreign investors about the geopolitical risks of investing in Taiwan or the region, though that has not been reflected by data.

While he acknowledged China was considering an economic blockade, Lee warned that it still posed the risk of escalating into a wider regional armed conflict. Other countries conducting large amounts of trade with Taiwan might also become involved, he said.

At the end of the Bloomberg interview, Lee said the U.S. and Taiwan could see results for talks on a non-binding trade framework, the U.S.-Taiwan Initiative on 21st Century Trade, by late 2023.