This week’s featured graphic shows market shares of companies in the chip industry, more specifically in its contract manufacturing segment. For more information on microchips and on fragile networks underpinning the semiconductor industry, read Julian Kamasa’s CSS Analysis in Security Policy here.
Strategic Trends 2021 offers a concise analysis of major developments in world affairs, with a focus on international security. It features chapters on China-Russia relations and transatlantic security, Franco-German-British security cooperation after Brexit, Turkey’s power projection in the Middle East and beyond, Europe and major-power shifts in the Middle East, and Japanese and South Korean perspectives on changing power configurations in Asia.
Paul Dibb, in his recent Strategist post, writes that America’s strategic position in Asia would be fatally undermined if it didn’t go to war with China if China attacked Taiwan, and that Australia’s alliance with America would be fatally undermined if we didn’t then go to war with China too. The conclusion he draws is that, in the event of an unprovoked Chinese attack on Taiwan, America should go to war with China, and so should Australia.
On June 13, Panama switched diplomatic recognition from the Republic of China on Taiwan (ROC or Taiwan) to the People’s Republic of China (PRC or China). Panama City and Beijing jointly announced that “the Government of the Republic of Panama recognizes that there is but one China in the world, that the Government of the PRC is the sole legal government representing the whole of China, and that Taiwan is an inalienable part of China’s territory.” Panama’s defection should serve as a “wakeup call” for the present administration in Taipei. To be sure, something needs to change.
After learning of the loss of one of Taiwan’s oldest friends, officials in Taipei – including President Tsai Ing-wen – lashed out at Panama for its shocking “betrayal.” Authorities also blasted the PRC for “oppressing” Taiwan. Senior officials even went so far as to threaten that the Tsai administration would consider all of its options while rethinking relations with the Chinese mainland. Paradoxically, anti-China pundits based in Taiwan (and elsewhere) put a different spin on the diplomatic defection. Some argued that the loss of Panama didn’t matter, while others claimed that Beijing had returned to the practice of “checkbook diplomacy” (bribing small countries to switch diplomatic relations). But these interpretations fall short.
Ahead of the Donald Trump-Xi Jinping summit this week at Mar-a-Lago, Taiwan is understandably anxious. Trump’s ascendance to the American presidency has injected uncertainty into the U.S. approach to China and Taiwan — an element of foreign policy that is traditionally carefully calibrated to avoid upsetting the precarious cross-strait arrangement. Taiwanese President Tsai Ing-wen’s unprecedented phone call with then-President -elect Trump in early December seemed to herald a new, more muscularly pro-Taiwan approach. This impression was subsequently belied by Trump’s suggestion that Taiwan could be traded away as part of a grand bargain with China. Speculation about Trump’s interest in upending this long-standing U.S. policy died down after the president affirmed his support for the “one China policy” in his first conversation with Xi. The next month, Secretary of State Rex Tillerson adopted China’s verbiage regarding a “new model of great power relations” during his trip to Beijing.
Whether and how Trump and Xi will address the one China policy remains to be seen. “We are preparing for every scenario,” one unnamed Taiwanese official toldThe Washington Post. Yet the underlying problem is clear. As Taiwan’s recently released Quadrennial Defense Review argues, Chinese military power is increasing at the same time as the new administration’s plans for “the United States’ Asia-Pacific strategic direction and troop deployment” remain uncertain. These shifting geopolitical currents come at the same time as growing strain between Taiwan and China. Beijing regards Tsai’s traditionally pro-independence political party as antagonistic to its interests and, since her inauguration last May, has undertaken a campaign of increased economic, political, and military pressure.