The Taiwan, America, China triangle of Power: Swimming Upstream.
Historically, Taiwan has been a colony for hundreds of years including being ruled by the Dutch, the Portuguesa, the Chinese, and Japan. Its independence and sovereignty are only a recent, tenuous spirit of time. After WWII and defeat of Japan, the allies agreed to authorize China to take control of the island. This was agreed to via the Potsdam Conference in 1945. At the time Taiwan commodities included rice and sugar as well as coal, camphor, salt and timber production. These resources were nationalized by China and Taiwan slid into hyper-inflation and economic disorder.
A civil war was ongoing between the communists and the Kuomintang government under Chiang Kai Shek. As a result, millions of Chinese fled the war and settled in Taiwan. The Kuomintang governed Taiwan under martial law from 1949 to 1987.
By 1974, Taiwan officially entered the semiconductor industry. Still under the government of Chiang Kai Shek, The government and the Industrial Technology Research Institute licensed chip technology from the U.S. company RCA. By 1977, Taiwan had built its first demonstration fabrication plant and successfully began producing commercial chips. Taiwan’s Chiang Kai Shek was Iraq’s Saddam. The government was building a new economy, building ports, expanding infrastructure, and upgrading the quality of life while stamping down inflation.
In February 1979, the US instituted a Law titled The Taiwan Relations Act: “The decision to establish diplomatic relations with the People’s Republic of China rests upon the expectation that the future of Taiwan will be determined by peaceful means and that any effort to determine the future of Taiwan by other than peaceful means, including by boycotts or embargoes is considered a threat to the peace and security of the Western Pacific area and of grave concern to the United States.”
This Act was between the US and the US. It was not an agreement or treaty with Taiwan or China and had zero bearing on their social or economic system. Yet, the US was attempting to insert itself into an economy that effectively belonged to Taiwan and China. In addition, in a demonstrably aggressive move against China, the US decided to arm Taiwan with ‘defensive weapons’ should ‘any danger to the United States interests arise from such threats’.
The logic was the US armed Taiwan to ensure its peace… To ensure the US stake, the American Institute in Taiwan was established. The tech revolution began with the US claiming rights over Taiwan’s semiconductor industry which burgeoned into Taiwan becoming the world’s largest producer of chips at 60% of the global market.
When Trump left China and made the statement that he agreed with Xi Jinping on Taiwan’s sovereignty, the game was to assure Jinping would not interfere in America’s dependence on Taiwan chips. Without which the US cannot make weapons to destroy countries and murder peoples. Trump left on tip-toes with an empty wallet.
Today, The Economist declares that Trump is amassing troops around Taiwan via South Korea, Japan and the Philippines. The current number of troops stationed in Japan alone is roughly 60,000. America is not protecting Taiwan from China, America is protecting its major chip manufacturer after devastating the US weapons inventory stockpile. Playing nice with Jinping assures Taiwan’s ‘status quo’. of delivering chips to America. Intel has failed to deliver and remains at least 4 years into the future before it can begin to replace the Taiwan chips.
Why doesn’t Nvidia simply cover all the manufacturing for the US?
Because Nvidia designs the architecture and software for its chips, but outsources all physical manufacturing to Taiwan Semiconductor Manufacturing Company (TSMC). If China shuts down Taiwan shipments to the US – Ladies and Gentlemen – we are screwed. Nvidia is screwed. And China wins. Again.
The Art of The Deal. Trump had nothing to offer. So he brought every major tech CEO to grovel at China’s feet and Xi was indifferent.
While the media montage claim Putin’s visit to China tonight is a humbling for Russia, the Putin/Xi relationship has been ongoing for 20 years – he has visited China for various government meetings at least once every year if not more. Russia and China share trade via the BRICS+. They trust each other – whereas Trump has shown himself to be a pathological liar subject to whimsical changes within hours of a handshake.
When Trump declared that Middle East Leaders told him to stand down from attacking Iran today, those same leaders said they were not even informed that an attack was planned. It is much more likely, Xi Jinping told Trump to stand down or they would take Taiwan and – No More Chips For YOU! Trump was afraid to tell the truth because he would be ripped as Xi’s little puppet. So, he manufactured a story that he thought, his advisors thought, would not be challenged.
What Trump’s Advisors don’t seem to understand is that the Saudis and China have a strategic trade partnership, China is Qatar’s largest trading partner, and the UAE and China have deep economic integration. Information is exchanged… What has been understated is the depletion of weapons is likely much greater than we are told.
What the Middle East and China don’t have is sanctions, deceit, and Israel hemorrhaging their economies via blackmail. Israel wanted America’s stranglehold as the American Empire – to implode. Israel pulled the plug and is using Trump and Congress to achieve this goal. And what we have learned is that their own precious reputations are more important than America and Americans.