A research group says that South Korea, Japan and the Philippines would be the most impacted in the event that a conflict between Taiwan and mainland China escalates into a full-scale war involving the United States.

The Economist Intelligence Unit (EIU), the research and analysis division of the Economist Group, the sister company to the Economist newspaper, presented the analysis in its recent report.

The EIU said that a war in the Taiwan Strait would send an enormous blow to Asia, adding that the devastation of regional information and communications technology production and supply-chain networks would cause abnormal shocks to Northeast and Southeast Asia.

The EIU evaluated risks in the case of a full-blown military dispute involving Taiwan, China and the United States, and assessed that the Philippines, Japan and South Korea would be the most impacted in light of geopolitical and economic factors.

The report cited South Korea’s high dependency on China in trade, its proximity to the Taiwan Strait, and the fact that it is a major ally of the United States. It also mentioned that U.S. forces are stationed in all three nations.

The EIU said that a conflict in Taiwan would create "severe vulnerability" for Australia and Hong Kong, plus parts of Southeast Asia.