Why Beijing’s threat of invading Taiwan should concentrate minds everywhere
The UK is conducting scenario analyses of the economic impact of a Chinese invasion of Taiwan, given the country’s isolation in the post-Brexit era and one year on from Russia’s war in Ukraine.
Obviously, Xi Jinping is not an irresponsible idiot like Vladimir Putin. But historically, China has always asserted that Taiwan is an integral part of its territory, and that while it would prefer a peaceful solution to reunification, it reserves the use of force or blockades if at any time it deems it necessary.
It should be remembered that the island is now a global leader in microchip manufacturing, in the form of the Taiwan Semiconductor Manufacturing Company Limited, known as TSMC, the most advanced company in the field. What’s more, the TSMC has managed to put itself at the center of any scenario: China’s problems in becoming technologically self-sufficient after the restrictions imposed by the United States make taking control of the company a tempting option.
Obviously, invading Taiwan would not solve China’s technological problems: the reality of gaining military control of the island would in no way guarantee that the production capacity of Taiwan’s crown jewel would remain intact or that it could be used to supply China with the microchips it is unable to…
