In a significant development impacting the geopolitical landscape of the Asia-Pacific region, Chinese President Xi Jinping reportedly urged US President Joe Biden to adjust the language used by the United States concerning Taiwan’s independence. This request was made during a meeting near San Francisco last November, according to reports.
While Xi’s aides have persistently followed up on this request, the US has remained steadfast in its position. The White House reiterated its commitment to the “One China” policy, emphasizing that the Biden-Harris administration does not support Taiwan’s independence. This stance, reported by Reuters on Tuesday, highlights the delicate balance the US is attempting to maintain in its relations with both China and Taiwan.
Any change in US language regarding Taiwan’s independence could have far-reaching consequences for the Asia-Pacific region. It could significantly impact trade and diplomatic relations, potentially signaling a shift in US policy. This could have repercussions for Taiwan’s defense and diplomatic goals, particularly amid China’s increased military activities around the island.
The ongoing tension between the US and China over Taiwan has significant implications for the global chip industry. Taiwan Semiconductor Manufacturing Co. (TSM), a major player in the semiconductor supply chain, is at the center of this geopolitical tug-of-war. While a recent poll suggests that a majority of Taiwanese citizens downplay the threat of a Chinese invasion within the next five years, concerns about China’s territorial ambitions remain.
This sentiment is crucial as it affects the strategic decisions of major Taiwanese companies like TSM, which are integral to the global semiconductor supply chain. Amid rising security concerns, the US and Taiwan have been working together to strengthen their drone industry cooperation to create supply chains independent of China. This collaboration aims to “de-risk” supply chains amid US-China competition.
In a related development, Taiwan Semiconductor recently halted shipments after discovering a link to Huawei Technologies, citing US sanctions. This move further underscores the complex web of geopolitical and economic factors at play in the Taiwan Strait, highlighting the delicate balance the US and China are trying to strike in their relations with Taiwan.
