The U.S. warned Europe that the conflict over Taiwan would cause a massive global economic shock, in an effort to step up contingency planning amid growing concerns about military action in the Indo-Pacific region, the FT writes.

The State Department shared research with partners and allies that a Chinese blockade of Taiwan would cause $2.5 trillion in economic damage." The data are based on a report by the research firm Rhodium Group.

The warning was relayed to the European Commission and European government officials as the U.S. and its partners begin to consider how they might use sanctions against China in the event of any military action against Taiwan. Washington is using the report to emphasize to European countries that the conflict in Taiwan will have serious consequences for them.

U.S. officials have said that the U.S. and the EU have begun talks on how to prepare for a potential conflict over Taiwan.  Some officials believe that preparing contingency plans and making them public could be part of a strategy to contain China.

The U.S. has also used the example of the war in Ukraine to emphasize the need to consider contingencies.

The State Department declined to comment on the report. A U.S. spokesman said Washington is interested in peace and stability in the Taiwan Strait.

A senior EU official compared the dissemination of the report to a U.S. move last year to disseminate information about Russia's military build-up around Ukraine, when some EU capitals rejected the idea of an invasion.