“That’s the commitment we’ve made,” Biden said when asked about the US’s intention to protect Taiwan. “We agree with the ‘One China’ policy. We signed it.” Although the White House quickly confirmed that the president’s comments did not reflect a change in policy, his comments came at a time of heightened concern about China’s interest in invading Taiwan following Russia’s invasion of Ukraine. Biden’s warning contradicts the long-standing US position of “strategic ambiguity” when it comes to Taiwan. That policy makes it unclear whether the U.S. would defend Taiwan if China invaded, Michael O’Hanlon of the Brookings Institution said in an interview with CNBC. Any potential action could have implications for the global supply chain. Taiwan has positioned itself as a key supplier of the semiconductors found in thousands of electronics, from the iPhone to critical military equipment. But the world’s reliance on Taiwan for key chips has come under increased scrutiny amid a global shortage. Taiwan accounts for 64% of the total chip foundry market, according to TrendForce data. Taiwan Semiconductor Manufacturing Company, or TSMC, accounted for 53% of total foundry revenue in 2021, according to TrendForce. “I think for older generations, they might remember a Taiwan that produced cheap toys,” Rupert Hammond-Chambers, president of the US-Taiwan Business Council, told CNBC in an interview. “That, however, has really changed.” Watch the video above to learn more about why tensions are rising between China and Taiwan, the importance Taiwan plays in the global supply chain, and what experts make of China’s increased aggression against its neighboring island.
