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We are going to an island among giants in the Pacific. This island is very important for the world's chip production and for China's maritime trade.
Today we would like to talk to you about China-Taiwan relations. The relations between these two countries have been the subject of discussion for many years. Taiwan defines itself as an independent country, while the People's Republic of China considers Taiwan a part of its territory. Due to the location of the island and economic factors, other world states are also involved in this issue. Taiwan has an important role in semiconductor and chip manufacturing worldwide, while China is a major consumer in this industry. So, what is the reason for this situation?
Taiwan's semiconductor industry is also a leader in many other technology areas. Therefore, Taiwan's technology industry is crucial to the world economy. However, China-Taiwan relations pose a threat to this industry as well. China is trying to increase its manufacturing capacity in semiconductors and is threatening Taiwan's leadership in this industry. China's long-term goal is to take over the semiconductor industry in Taiwan and make its manufacturers a leader in the world market. This tension has also increased the US interest in the semiconductor industry. The US government is implementing various policies to have more independence in semiconductor manufacturing. These policies include incentives for semiconductor manufacturers and investments to increase domestic production. Also, the strategic partnership of the USA with Taiwan makes Taiwan's role even more important in the semiconductor industry.
Taiwan's technological leadership poses a threat to China's long-term aspirations, while US ambitions for independent semiconductor production are further increasing tensions between China and Taiwan. This is a development that needs to be followed closely in the future.