Taiwan president pokes the bear by saying the nation needs to lessen its supply chain dependency on China
- Reference: 1628769733
- News link: https://www.theregister.co.uk/2021/08/12/taiwan_president_interview/
- Source link:
Taiwan's semiconductor industry dominates the global marketplace with homegrown giants like TSMC and in 2020 claimed 70 per cent of the world's OEMs. Tsai [1]attributed (see transcript - in traditional Chinese) this success to its mature industrial clusters and concentration on foundries as a business model, which faces little competition.
One struggle that concerns Tsai is keeping up with high-tech talent, particularly as Taiwan's semiconductor companies continue to set up manufacturing plants overseas.
[2]
"It is very difficult to rely solely on Taiwan to provide excellent talents," said Tsai.
[3]
[4]
The nation is working to boost digital and language skills among the Taiwanese. Attracting international talent is also a goal with the government hoping to establish a common "talent pool" with nations where Taiwanese companies have operations.
Tsai envisions a future of cooperation with these nations. "If the advantages of Taiwanese companies can be combined with the strengths of Japan and the United States, they can play complementary roles in development," said the president.
[5]Naughty karaoke is China's next tech crackdown target
[6]Foxconn buys chip factory off Macronix in bid to break into the electric vehicle market
[7]Qualcomm's bumper Q3 growth comes with supply constraints warning, but Intel may ride to the rescue
[8]Over 100 Taiwanese political figures' messages leaked outta LINE app
Tsai described the government's approach to China as "maintaining the status quo," except for when it comes to supply chain dependency.
"Taiwan has also adopted a position that it should not rely excessively on China for its production bases and markets, and consider various risks, so that trade and investment can develop in a diversified manner," said Tsai.
[9]
"Although many Taiwanese companies now have production bases in China, in the future, it is necessary to diversify their trading partners and investment locations."
Chinese state media outlet The Global Times also covered the interview, clearly expressing its disproval with the headline " [10]Tsai tries to belittle Chinese mainland's importance to Taiwan economy: experts ". The article said any attempt to decouple the economies of Taiwan and China was "infeasible and impractical" and said Tsai's remarks showed her intention to follow the US government.
The videoconference interview, which also touched on COVID-19, vaccines, Hong Kong, and the Uyghur population, was the first time Tsai has spoken to a foreign media outlet since January 2020. ®
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[1] https://www.president.gov.tw/news/26153
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YRVFtziGhmPLFCf@37QRYAAAAIY&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
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[5] https://www.theregister.com/2021/08/12/china_karaoke_and_drinking_crackdowns/
[6] https://www.theregister.com/2021/08/06/foxconn_acquires_macronix_chip_factory/
[7] https://www.theregister.com/2021/07/29/qualcomm_q3_2021/
[8] https://www.theregister.com/2021/07/29/taiwan_line_attack/
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YRVFtziGhmPLFCf@37QRYAAAAIY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://www.globaltimes.cn/page/202108/1231110.shtml
[11] https://whitepapers.theregister.com/
Re: A courageous decision, minister
Maintaining the status quo isn't poking the bear. Poking the bear would be formally claiming independence. Given the way the Chinese government are treating Hong Kong - they're only pushing more Taiwanese people into the camp that the only reason they don't declare formal statehood is fear of invasion by China.
Talking about decoupling supply chains is a bit more provocative though But then the Chinese government are going to have to get used to that, as there are a lot of people thinking it.
Re: A courageous decision, minister
Decoupling supply chains aka buying from somebody else is something that almost everybody does when the nation in question is threatening to invade.
And if that doesn't irritate your people enough to consider not paying for the weapons they are threatening to use on you then [1]threatening you and your allies with nuclear obliteration is almost certainly going to.
[1] https://www.business-standard.com/article/international/china-threatens-japan-with-nuclear-war-over-intervention-in-taiwan-121072300030_1.html
Too much of the world ...
relies excessively on China in its supply chain. This makes us vulnerable to an increasingly capricious government; they feel confident due to their increasing economic power and so feel empowered to impose their world view on others.
The danger is that China will insist that companies that deal with it agree to small demands (eg refer to Taiwan as part of mainland China), then more and more of them.
Putting our supply eggs in one basket is dangerous, no matter where that basket is.
Re: Too much of the world ...
When you look at all the issues that we've seen for years now, it seems sensible for all countries to support their own manufacturers and manufacturing - the issue with buying from other countries is that the local business CEO's are making money but the rest of the population is not.
Re: Too much of the world ...
Brexit was sold with the concept of fixing this by taking control of our country but it turned out that we lost control (look at all medical sanitary supply mess) with the CEO's making lots by keeping their traditional control over manufacturing everything elsewhere to fill their pockets.
Re: Too much of the world ...
If you look carefully, you'll notice that half your eggs are in an American basket. So no worries! Being vulnerable to two capricious governments can't be wrong!
I think everyone could take a leaf out of Taiwan's book here.
Oh bother!
Said Winnie the Pooh.
Re: Oh bother!
I see what you did there. Have a beer.
I blame Nixon.
Pretending that the ROC isn't the only legitimate government of all of China was a HUGE mistake.
There is one China. And Taiwan houses its legitimate government.
There are things you do and things you say
All countries should be concerned about over reliance on a single country whose policies can change overnight. Relying on an expansionist country whose policies can change overnight, like China, is a really bad idea. Taiwan clearly should be taking these steps.
But there was no need to say it. It might have been a political decision but, with the general election years away, waiting and saying 'we did' rather than 'we will' would seem to carry more clout.
I wonder if this was based on US prodding and directed as much at Australia's politics as China's.
A courageous decision, minister
"Tsai described the government's approach to China as "maintaining the status quo," ..."
That might sit well with the Taiwanese government, but I suspect that the CCP have different ideas. That particular bear doesn't need any poking to react.