China has demonstrated it can unleash a “stranglehold” on the global economy with its military drills off Taiwan, Nine Network Political Editor Chris Uhlmann warned today.

He told Today the wargames over past days showed Chinese military forces could quickly deploy a blockade of Taiwan, a key producer of technology products such as microchips.

“China surrounded Taiwan this week and 90 per cent of those chips come from there.

“Imagine if China had a stranglehold of that marketplace and we can’t quickly make those kinds of things in other parts of the world.”

Uhlmann was speaking after China’s ambassador to Australia addressed the National Press Club in Canberra yesterday.

Xiao Qian said Beijing would never give up its claims on the self-ruling island but flagged a possible diplomatic reset with Australia.

However, Uhlmann said China should be judged on its actions.

“I think China flies in the face of its words, that is it’s occupied and militarised the South China Sea in defiance of international law.”

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