China has begun building military force in recent weeks that includes the accumulation of vessels and aircraft, and some also say that some also carry nuclear weapons. At the same time, senior Chinese officials have begun to increase the tone against the United States so that it does not interfere in Taiwan’s affairs.
China has begun building military force in recent weeks that includes the accumulation of vessels and aircraft, and some also say that some also carry nuclear weapons. In Taiwan itself and in the West, there have been fears in recent months since the Russian invasion of Ukraine that China will take advantage of what it sees as the weakness of the West, which is afraid to mess with a nuclear power, and do Ukraine’s action in Taiwan. As mentioned last week, there has been a deterioration in the Chinese approach – both in the concentration of the army and in the rhetoric.
Last Thursday (7/7/2202), Chinese Army Chief of Staff General Lee Zucheng demanded that the United States end its “cooperation” with Taiwan. He said China “sees no room for compromise on core issues,” including Taiwan’s desire to be an independent country. “China demands that you stop turning history around and avoid affecting stability in the Taiwan Strait.” Zucheng further threatened: “If anyone produces a provocation, he will encounter a crushing reaction.”
Concerns grew not only because of China’s air and naval activity in the Taiwan Strait but also after Chinese President Xi Jenping’s visit to Hong Kong, a province that according to the post – British exit from it was to be run independently. The fear is that just as China has denied the agreements it signed in Hong Kong, so will it in Taiwan.
In May, President Joe Biden issued a stern warning to China: The United States will defend Taiwan militarily if China invades. “This is the commitment we made,” Biden said in response to a question about the United States’ intention to protect Taiwan. “We agree with the ‘One China’ policy. We signed it. “
Although the White House was quick to confirm that the president’s remarks did not reflect a change in policy, his remarks came at a time of heightened concern over China’s interest in invading Taiwan following Russia’s invasion of Ukraine.
Biden’s warning contradicts the long-standing position of the United States in “strategic ambiguity” regarding Taiwan. It is therefore unclear how the US will come out in defense of Taiwan where China will invade it.
Any potential action could have implications for the global chip supply chain, which has become especially vital now in light of the chip shortage. Taiwan accounts for 64% of the total chip manufacturing market, according to TrendForce. The largest Taiwanese manufacturer – TSMC, accounted for 53% of total chip makers’ revenue in 2021.
The US is not yet ready for massive chip production
In order to produce more chips in the United States, the Biden government will have to address first and foremost problems related to a productive workforce that no longer exists in the United States and a lack of the infrastructure essential to rehabilitate its production capabilities. A Boston Consulting Group report shows that the costs involved in running a chip plant in the U.S. for 10 years will be about 30 percent higher than in Taiwan, South Korea or Singapore, and about 37 percent to 50 percent higher than in China. Given the enormous economic costs, it is easier to talk about returning production to the United States than to do so.