Why Tensions Between China And Taiwan Are On The Rise

In Could, President Joe Biden issued a stern warning to China: the US would come to the protection of Taiwan militarily if China invades.

Responding to a query on America’s intention to defend Taiwan, Biden mentioned, “That is what we have made a dedication to.” “We conform to the ‘One China’ coverage. We have now signed it.”

Though the White Home instantly confirmed that the president’s remarks didn’t mirror a coverage change, his remarks got here at a time of utmost concern over China’s curiosity in attacking Taiwan following Russia’s invasion of Ukraine.

Biden’s warning contrasts the US’s long-standing place of “strategic ambiguity” in the case of Taiwan. Michael O’Hanlon of the Brookings Establishment informed CNBC in an interview that the coverage doesn’t make it clear whether or not the US will come to Taiwan’s rescue if China invades.

Any potential motion might have an effect on the worldwide provide chain. Taiwan has established itself as a provider of semiconductors present in 1000’s of electronics, from the iPhone to vital navy gear. However the world reliance on Taiwan for important chips has come below elevated scrutiny amid world shortages.

In line with TrendForce knowledge, Taiwan accounts for 64% of the entire chip foundry market. In line with Trendforce, Taiwan Semiconductor Manufacturing Firm, or TSMC, accounted for 53% of complete foundry income in 2021.

“I believe for older generations, they might keep in mind a Taiwanese that produces low cost toys,” mentioned Rupert Hammond-Chambers, president of the US-Taiwan Enterprise Council in an interview with CNBC. “Nonetheless, he is actually moved.”

Watch the video above to study extra about why tensions between China and Taiwan are rising, Taiwan’s position within the world provide chain, and what consultants consider China’s rising aggression towards its neighboring island.

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