That role also means a war over Taiwan could be "cataclysmic," the report warned, potentially "wiping out as much as 10 percent of global GDP"—an unprecedented economic hit in modern times. The authors said the ramifications of such a scenario could be "on par with the 2008 Global Financial Crisis."

Beijing’s strategy, known as “the pen and the gun,” employs a domestic media campaign and aggressive rhetoric toward Taipei’s friends.

PANAMA CITY -- A planned trip by some Panamanian lawmakers to Taiwan has unleashed the latest diplomatic spat with China as the Central American country tries to navigate the turbulent waters between the Asian superpower and the United States.

HONG KONG -- China will suspend imports of Japanese seafood, according to ABC News partner NHK, escalating a diplomatic dispute triggered by Japanese Prime Minister Sanae Takaichi’s recent comments suggesting Tokyo could take military action if China attacks Taiwan.

China is the real regional "troublemaker", a senior Taiwanese security official said on Friday, personally giving out copies of a new civil defence handbook the government is sending to every household on the island as China tensions rise.

Tension between Japan and China has escalated over the new Japanese leader's suggestion Tokyo could intervene militarily if Beijing attacks Taiwan.