February 1, 2023

Taylor Daily Press

Complete News World

Will US Export Restrictions on Chips Harm Taiwan?

China has filed a complaint with the World Trade Organization (WTO) to lift US export restrictions on chips. Taiwan wants to participate in the talks.

Why is this important?

Taiwan is the largest supplier of sophisticated chips to the world market. As semiconductors become increasingly strategically important globally, the great powers are making their trade policies more difficult for competitors to access. That could have an impact on the global market and the Taiwanese economy that depends on it.

In the message: The United States argued last fall Export restrictions China blocks manufacturers of chip components from setting up their own chip industry. According to the news website Asia Times China says the US practices protectionism and undermines trade rules and global supply chains.

  • Washington has pressured its allies to use the same trade restrictions against China. including Japan and the Netherlands noticed it.
  • Taiwan wants to be more closely involved in WTO negotiations. Upon applying to the WTO, the island did not intend to support China’s complaint or indicate that it was bothered by US actions.
  • What Island wants to achieve with this is to be able to better gauge what impact this dispute will have on the global chip market. It is in Taiwan’s self-interest because Taiwan’s economy depends on it. “We want to better understand the current supply and demand situation of semiconductors,” it said.
  • When the US introduced its export restrictions, TSMC, Taiwan’s largest chip maker, took a share of the stock market. in feet with a decline of 8.3 percent.
  • Even if the negotiations go in China’s favor, it remains to be seen whether the WTO will apply enough pressure to change the US’s mind.
  • China urgently needs more semiconductors. Current chipmakers need additional investments, but because of the resurgence of the coronavirus, Beijing is currently not getting any money for this. Additionally, the expensive investments made in the past for its own chip product line have yet to yield the desired results.

(NS)

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