Armstrong Economics Blog/World Trade Re-Posted Sep 6, 2022 by Martin Armstrong
Taiwan’s President Tsai Ing-wen is eager to strengthen relationships with the US by producing more semiconductor chips. The US recently set aside funds specifically to build up domestic manufacturing, but shortages remain a serious problem. Taiwan’s growing relationship with America has angered China, and Ing-wen’s words will certainly be a subtle elbow to the One China policy.
“In the face of authoritarian expansionism and the challenges of the post-pandemic era, Taiwan seeks to bolster cooperation with the United States in the semiconductor and other high-tech industries. “This will help build more secure and more resilient supply chains. We look forward to jointly producing democracy chips to safeguard the interests of our democratic partners and create greater prosperity,” the president stated.
Democracy is exactly what China does not want Taiwan to have. After Pelosi opened the door, every politician seems to want to make a statement by visiting Taipei now. Arizona Governor Doug Ducey made an appearance in Taipei to discuss the aforementioned democracy chip venture. They also discussed helping to make the Indo-Pacific a neutral zone, which is unrelated to trade. The US continues to all but outright state they fully support Taiwan’s independence and China is taking note