Yoselina Guevara López
This Thursday, July 28, Presidents Xi Jinping and Joe Biden, held a telephone conversation for more than two hours, in one of the most tense moments between China and the United States due to the security situation around the Taiwan Strait, the alleged plan of the Speaker of the U.S. House of Representatives, Nancy Pelosi, to visit the island of Taiwan and the approval of the Law of Chips and Science.
This communication exchange between the two leaders is important because it is a sign that there is still room for diplomacy and that there is still a willingness between the two powers to manage their differences through dialogue; although it must be taken into account that the economic pressure the United States is going through is also one of the key reasons why diplomatic channels remain open.
Press agencies reported that the two presidents had a sincere communication and exchange on the relations between China and the United States, dealing with matters of mutual interest. For his part, the Chinese leader openly criticized the U.S. policy on China, including its strategy that places it as a “primary rival”. This shows that Beijing has always refused to define relations between the two countries from the perspective of being rivals or at worst enemies, because this could lead to worst-case scenarios.
The Chinese president again warned the U.S. side about the seriousness and importance of the Taiwan issue, which is very clear, as are the facts and the status quo that both sides of the Taiwan Strait belong to one and the same China. The three joint communiqués by Beijing and Washington embody the political commitments made by both sides, and the “one China” principle is the political foundation of China-U.S. relations. In this regard, Xi Jinping said that China firmly opposes the separatist movements in Taipei and the interference of outside forces, adding that they will never allow any space for the forces that support the so-called “Taiwan independence”. He referred to the consistent position of the Chinese government and people on the Taiwan issue, which is to resolutely safeguard China’s national sovereignty and territorial integrity, noting that it is the firm will of the more than 1.4 billion Chinese people. President Xi Jinping stated that “one cannot defy public opinion. Those who play with fire will perish for it. Hopefully, the United States is clear about this.”
This is evidently a clear and forceful warning, adding to those already made by China’s Ministry of Foreign Affairs and Ministry of National Defense, so if Mrs. Nancy Pelosi insists on her provocative plan to visit Taiwan, her country will face serious consequences in which nothing is out of the question.
As we have pointed out in other articles Biden and Pelosi are divided over the president’s possible trip to the island, as Pelosi is considering the mid-term elections and her own political interests. While the U.S. president is looking at it from the perspective of the White House, that is, as the person responsible for Washington’s national interests.
The American Law of Chips and Science
Adding to the tensions generated by Pelosi’s possible visit to Taiwan is the recent Law of Chips (Creating Helpful Incentives to Produce Semiconductors) and Science passed by the U.S. Senate. The legislation aims to address the severe chip shortage through massive subsidies to the semiconductor industry. The goal of the legislation is twofold; first, to boost U.S. competitiveness in the technology war against China and second, to slow the inevitable decline of U.S. manufacturing.
U.S. industry is a leader at the high end of the chip value chain, primarily in design and R&D, but relies on Asian industries for the middle end of the chain; South Korea and Taiwan dominate core component production, China, chip assembly. With this law Washington seeks independence from Beijing in the global semiconductor value chain.
For the United States, securing domestic chip production is essential for a wide range of consumer goods as well as military assets. It is no coincidence that Biden has called approval of the proposal crucial to “national security.” For its part, the Chinese embassy in Washington had already commented that the bill appears to be “rooted in the Cold War mentality.” For now, tensions between the two powers are simmering, the chess game is still open with the US nuclear aircraft carrier “Ronald Reagan” bound for the South China Sea. It is not clear exactly what the moves of the pieces will be.
Adding to the tensions generated by Pelosi’s possible visit to Taiwan is the recent Law of Chips (Creating Helpful Incentives to Produce Semiconductors) and Science passed by the U.S. Senate. The legislation aims to address the severe chip shortage through massive subsidies to the semiconductor industry. The goal of the legislation is twofold; first, to boost U.S. competitiveness in the technology war against China and second, to slow the inevitable decline of U.S. manufacturing.
U.S. industry is a leader at the high end of the chip value chain, primarily in design and R&D, but relies on Asian industries for the middle end of the chain; South Korea and Taiwan dominate core component production, China chip assembly. With this law Washington seeks independence from Beijing in the global semiconductor value chain.
For the United States, securing domestic chip production is essential for a wide range of consumer goods as well as military assets. It is no coincidence that Biden has called approval of the proposal crucial to “national security.” For its part, the Chinese embassy in Washington had already commented that the bill appears to be “rooted in the Cold War mentality.” For now, tensions between the two powers are simmering, the chess game is still open with the US nuclear aircraft carrier “Ronald Reagan” bound for the South China Sea. It is not clear exactly what the moves of the pieces will be.
Yoselina Guevara L.(@lopez_yoselina)is an international policy political analyst, correspondent and recipient of the Simón Bolívar 2022 National Journalism Award (Opinion) and Anibal Nazoa 2021 (Venezuela).
Nancy Pelosi’s Possible Visit to Taiwan Raises Tensions Between Beijing and Washington
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