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15-04-2022, 08:51 AM
By DAVID P. GOLDMAN
APRIL 14, 2022
NEW YORK – China’s exports to the United States reached a new peak of nearly US$700 billion in March
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That compares with a seasonally adjusted annual rate of just US$410 billion in August 2019, when the Trump administration imposed tariffs on a wide range of Chinese imports.
US imports from China have risen by about 60% since the tariffs came into effect, reflecting a surge in consumer spending driven by US$6 trillion of government stimulus during the Covid-19 epidemic, as well as flagging capital investment in domestic US manufacturing and a shortage of qualified factory workers.
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Taiwan ...... is now China’s largest source of imports in Asia
......
Taiwan’s exports to the mainland have doubled during the past five years and overtook imports from both Japan and South Korea in 2020.
......
Taiwanese chip fabricators are helping to build China’s semiconductor industry, a top national priority after the Trump administration restricted US exports of sophisticated chips as well as chip-making equipment and design software to China.
A great many Taiwanese chip fabrication engineers – media estimates range between 10% and 20% of the total – are working on the mainland for enhanced pay building Chinese chip-making facilities.
Mutual dependencies among China, the United States and Taiwan have increased markedly during the past two years. Any disruption of trade relations due to strategic tensions among the three countries would entail significant reductions in output and consumption.
China’s supply chains are the only source of many products in large volume, and a cut in China’s exports to the US would result in critical shortages of essential goods.
Taiwan’s continuing aggressive investment in chip-making capacity depends on China’s enormous appetite for integrated circuits. In 2020, China imported US$350 billion worth of chips, the lion’s share of the world market, and a disruption of exports to China would throw Taiwan’s most important industry into crisis.
From a strategic standpoint, Taiwan is the goose that lays golden eggs for China’s electronics industry, which assembled 35% of the world’s electronic devices in 2020. In terms of both semiconductors and expertise, Taiwan is giving China everything it needs.
That makes it extremely unlikely that China would disrupt the status quo by using force to achieve reunification of the island with the mainland – unless the United States were to take steps in the direction of Taiwanese independence.
https://asiatimes.com/2022/04/chinas-tra...-cold-war/
APRIL 14, 2022
NEW YORK – China’s exports to the United States reached a new peak of nearly US$700 billion in March
......
That compares with a seasonally adjusted annual rate of just US$410 billion in August 2019, when the Trump administration imposed tariffs on a wide range of Chinese imports.
US imports from China have risen by about 60% since the tariffs came into effect, reflecting a surge in consumer spending driven by US$6 trillion of government stimulus during the Covid-19 epidemic, as well as flagging capital investment in domestic US manufacturing and a shortage of qualified factory workers.
......
Taiwan ...... is now China’s largest source of imports in Asia
......
Taiwan’s exports to the mainland have doubled during the past five years and overtook imports from both Japan and South Korea in 2020.
......
Taiwanese chip fabricators are helping to build China’s semiconductor industry, a top national priority after the Trump administration restricted US exports of sophisticated chips as well as chip-making equipment and design software to China.
A great many Taiwanese chip fabrication engineers – media estimates range between 10% and 20% of the total – are working on the mainland for enhanced pay building Chinese chip-making facilities.
Mutual dependencies among China, the United States and Taiwan have increased markedly during the past two years. Any disruption of trade relations due to strategic tensions among the three countries would entail significant reductions in output and consumption.
China’s supply chains are the only source of many products in large volume, and a cut in China’s exports to the US would result in critical shortages of essential goods.
Taiwan’s continuing aggressive investment in chip-making capacity depends on China’s enormous appetite for integrated circuits. In 2020, China imported US$350 billion worth of chips, the lion’s share of the world market, and a disruption of exports to China would throw Taiwan’s most important industry into crisis.
From a strategic standpoint, Taiwan is the goose that lays golden eggs for China’s electronics industry, which assembled 35% of the world’s electronic devices in 2020. In terms of both semiconductors and expertise, Taiwan is giving China everything it needs.
That makes it extremely unlikely that China would disrupt the status quo by using force to achieve reunification of the island with the mainland – unless the United States were to take steps in the direction of Taiwanese independence.
https://asiatimes.com/2022/04/chinas-tra...-cold-war/
