China has promised billions of dollars in "financing support and free assistance" to five Central Asian countries, boosting trade, infrastructure and technology investment and including visa-free travel arrangements. Speaking at the two-day China-Central Asia Summit in Xi'an, China's President Xi Jinping presented himself as a reliable partner to nations which were formerly part of the Soviet Union, while emphasising the importance of safeguarding their sovereignty and territorial integrity. Those countries attending the summit included Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan and Turkmenistan, which have been increasingly concerned over Russian efforts to regain control of Ukraine.
Entegris, a top supplier of chip-making materials, has invested in a $500m manufacturing centre in Taiwan. The facility in Kaohsiung will house the company's most advanced manufacturing operations and produce the latest chip-making materials including filters and containers. President and CEO of Entegris Bertrand Loy stated that the investment was a "sign of the conviction we have in the future of the semiconductor industry in Taiwan." The chip manufacturing industry has been highly competitive, with leading chipmakers TSMC, Samsung Electronics and Intel racing to produce cutting-edge chips of 3nm and below.
The first phase of the 21st Century Trade Initiative, signed by Taiwan and the US, could make exporting easier, although could also trigger a backlash from Beijing. The deal focuses on streamlining customs procedures for imports, supporting SMEs and increasing trade-related transparency. Taiwanese Premier Chen Chien-jen calls the deal “fruitful and historic”. Shipping should be expedited, with US customs expected to perform more quickly, catering to goods such as polystyrene for bottles, as well as certain plastics and fibre imports which were worth $64.23m in the first four months of 2023. The parties have agreed that each will allow shippers to file import-related documents electronically and inspect shipments at ports during logical hours. Officials expect further negotiations to cover digital trade, removing double taxation and agricultural-related issues.
Taiwanese President Tsai Ing-wen has vowed to maintain peace and stability across the Taiwan Strait, in the face of rising tension with China. She confirmed Taiwan was discussing $500m worth of US weapons aid and said she was committed to preserving the nation's leading-edge chip technologies and research. Leaders of the G7 nations, meeting in Japan, reaffirmed their commitment to seeking a peaceful resolution to the Taiwan issue. Ahead of the country's January 2024 presidential election, Taipei is preparing for further aggression from Beijing, with cross-strait relations guaranteed a place on the campaign agenda.
Taiwanese President Tsai Ing-wen has vowed to maintain a peaceful and stable status quo between Taiwan and China amid increasing military and diplomatic pressure from China. Beijing has threatened to bring Taiwan under its control and has rejected calls to hold talks with Tsai. Leaders of the G7 nations agreed to seek a peaceful resolution to issues concerning Taiwan. Tsai also announced discussions with the US over sending $500m worth of weapons aid to Taiwan to address delays arising due to the pandemic. Taiwan is due to hold a key presidential election in January, with tensions with China set to be a top issue.
Cross-Strait security and reinforcing Taiwan’s position in the global supply chain are key priorities for Taiwanese President Tsai Ing-wen in her final year, as she lays the path for her deputy's ascendancy. Tsai reaffirmed her commitment to dialogue with China and promoting orderly exchanges, warning that "war is not an option". Further challenges include Taiwan's ongoing recession and its position as part of the deteriorating relations between the US and China. Both Vice President Lai Ching-te, of the incumbent Democratic Progressive Party, and New Taipei City Mayor Hou Yu-ih of the opposition Kuomintang are in the running for the January elections.
Over 55% of the Chinese public would support a full-scale war to regain control of Taiwan, according to a survey conducted by researchers from the National University of Singapore and NYU Shanghai. The poll canvassed 1,824 people and found that respondents were in favour of offensive options, including the use of limited military campaigns, economic sanctions, and a continued status quo until unification was achieved. Concerns about the economic, reputational, and human costs of a forceful takeover cooled support. It previously been thought that younger Chinese citizens are more nationalistic than older people. However, the poll appears to refute that claim and found that older citizens appear to be more impatient to resolve Taiwan’s status. The report noted that public opinion could shape China’s policy on Taiwan. However, the Communist Party controls the policymaking process, meaning that public opinion can only influence policy to a limited extent.
South Korean chipmakers Samsung Electronics and SK Hynix are facing a choice between angering the US or China as the latter continues to clamp down on US chipmaker Micron Technology. The problem for both companies is expanding their presence in China without upsetting US authorities or failing to take action and risking Beijing's wrath. The firms are the two biggest memory chip manufacturers globally, with Micron in third place. Although all three do significant business in China, only Samsung and SK Hynix have significant production facilities there.
The Group of Seven (G-7) summit in Japan on 28 and 29 May has triggered another round of confrontational statements with China. A G-7 communiqué said that Beijing must do more to stop Russia's invasion of Ukraine, condemned its so-called "malign" trade practices and vowed to "foster resilience to economic coercion" by shielding their economies from having too much exposure to China's thriving market and export industry. However, the communiqué also stated that the group's nations "stand prepared to build constructive and stable relations with China." China summoned the Japanese ambassador on 30 May for a dressing down over what a Chinese diplomat termed the G-7's "bloc confrontation and Cold War mentality". A Chinese Foreign Ministry statement lambasted the G-7's "bullying". It began: "The era when a few developed countries in the West willfully interfered in the internal affairs of other countries and manipulated global affairs is gone forever." The summit is seen as the latest proof of increasing Western concern over China's influence. Public opinion has been hardened by Beijing's continent-wide, ambitious infrastructure projects, its belligerence over self-ruled Taiwan and its alleged failure to condemn Russia's presence in Ukraine.
