U.S.-Taiwan meeting covers semiconductor chip shortage, China coercion

Taiwan’s Economy Minister Wang Mei-Hua revealed on Tuesday that the U.S. discussed with its country potential plans to address the semiconductor chip shortage, in addition to finding the needed approaches to counter China’s economic “coercion.”

During the second session of an economic dialogue initiated last year, the discussion followed a week after a virtual meeting between President Joe Biden and China’s leader President Xi Jinping.

Following the meeting, President Xi highlighted that any support driven towards Taiwanese independence from U.S.-based supporters will have grave consequences.

This generates from China’s ferocious belief that democratic Taiwan is part of the country, and it will not prevent the use of excessive force to guarantee the unity of both Chinese and Taiwanese land.

According to Wang, both parties reviewed in a five-hour-long discussion around supply chain, a collaboration between the U.S. and Taiwan regarding the semiconductor shortage the U.S. is enduring.

From its part, Secretary of State of economic growth, energy, and the environment, Jose Fernandez, represented the U.S.

“The semiconductor portion included the present short-term supply chain bottleneck problem. Even more important is the future long-term collaboration,” Wang said in a statement.

Taiwan is considered one of the leading chip manufacturers in the industry and is currently pouring its all to solve the ongoing semiconductor chip shortage crisis left by the COVID-19 pandemic. By doing so, Taiwan will prove to the U.S. that it is investing all its resources to resolve the semiconductor chip shortage.

In parallel, the meeting addressed China’s economic “coercion,” with the discussion mainly focused on Lithuania as it endures extensive pressure from China after the European country opened its door for the Taiwanese embassy in its capital, Vilnius.

“We all share the belief that all countries, all economies, should not be subject to this kind of external coercion,” the Minister added to her statement.

In response, Beijing reduced on Sunday its diplomatic ties with Lithuania as its way of conveying heavy discontent with the European country.

However, China’s come back against this coalition has led to stronger American-Taiwanese ties around trade and investment project discussions.

Beijing’s move was faced with voiced disappointment from Lithuania, stating the Baltic State has every right to empower connections with Taiwan while considering the “One China” policy.

Beijing’s “One China” policy is a diplomatic acknowledgment that the country has only a Chinese government. The policy states that the U.S. must recognize and empower its ties with the country instead of the island of Taiwan, given that it considers the East Asian country as part of its territory.

On Sunday, Taiwanese companies operating in China were put in a position forcing them to choose between their own benefit and independent supporters under the pretense that Taiwanese independence jeopardizes stability while damaging Chinese people’s interests.

The Biden Administration’s approach to empowering U.S. interaction with Taipei came as a follow-up after Former President Trump initiated a plan to heighten the country’s engagement with Taiwan, trusting that this will fuel anger from Beijing.

In July, both parties conducted long discussions on a Trade and Investment Framework Agreement, with Taiwan expressing hope of potentially signing a Free Trade Agreement (FTA) with the U.S.