Why Taiwan can lose its best feature of chip manufacturing in coming years
Geopolitics is so complex that sometimes even experts get baffled by the results. The same is with China, Taiwan, and America’s rival triangles. Actually, it’s not a usual love triangle but a bad blood triangle that is on the verge of a cold war. China is the second largest economy after America and with this comes the rivalry between them.
There are a number of reasons for the China and America altercation. China’s expansion policy, the Taiwan matter, and Uighur Muslims are among the biggest reasons for this. But there was only one way through which America could come closer to China and that was Taiwan. Taiwan claims to be part of China by the Chinese government but Taiwan denies it completely. Under a one-China policy, whosoever wants to trade with China will have to consider Taiwan as China’s integral part.
A series of meetings of Taiwan delegates with American delegates has provoked China and caused it to focus on its chip industry. Taiwan is the biggest contract chip-making industry in the world and one of the most important industries in Asia. This makes Taiwan a sensitive point that China can’t afford to have an altercation with. Being a tech giant means having enough chips and that indirectly means having good relations with Taiwan.
So China is not only trying to keep Taiwan under its power but also focusing on local chip development. America has also suggested its manufacturers not import any chip that comes from China or China-ruled Taiwan. They have given one year contract for chip-making to a non-Chinese company in China itself. This is breaking the spine of Taiwan’s economy.