So does than mean China needs to increase military spending so that it can deal with both the US and Europe at the same time just in case EU changes its plans?
Who knows, EU also wants to be more independent on semiconductor supply chain.
Perhaps they’re willing to supply to China once that is accomplished?
If the escalation and provocation from Taiwan and US really warrant so, there are many ways to bring Taiwan to heel without invasion, in increasing severity:
- Nationalize all Taiwan factories in China. Since UN recognize one China this is strictly speaking an internal affairs.
- Cease all trade with Taiwan
- Cease all travel with Taiwan
- Blockade the ports of Taiwan
- Missile attack on strategic industrial areas, after adequate evacuation warning given to ensure no civilian casualties
All of these should have minimal diplomatic effect as long as Taiwan and USA are seen as the one provoking.
Yeah but what US is trying to do is deny China chip tech to force a war on TW. They will corner China.
It’s embarrassing enough that China claims TW as a province but TSMC can’t even sell to Huawei. Imagine this being expanded to all mainland companies. It's not only a tech independence issue, but a sovereignty issue. And US is violating Chinese sovereignty.
All I know is that TSMC has scorched earth policy and will not leave anything for the mainland. The engineers will also escape to the US to reestablish TSMC there.
On the other hand, Taiwan knows that TSMC is a significant bargaining chip and if the US gains lead over TSMC again, then Taiwan is forfeit. US has been pressuring TSMC to build that Arizona EUV fab to supply US F-35s and etc... US would actually prefer to have TSMC and its talent as a US company or part of Intel.