Semiconductors

Stalemate over Taiwan is the best we can hope for

The United States of China, anyone? The idea that a federal China might be able to accommodate within it a relatively autonomous Taiwan is one of the more radical solutions mooted to the thorny problem of Taiwan’s status. The difficulty, of course, is that neither the Chinese Communist party nor Taiwan’s leaders would find such an outcome remotely acceptable. The CCP will not countenance a loosening of its control over mainland China; the Taiwanese, for their part, see in Hong Kong’s recent sad trajectory a vision of their own future should their politicians ever accept an offer of special status within China.  At the other end of the spectrum lies

Joe Biden has jolted China

The chip war between China and America is heating up, with an increasingly assertive Joe Biden battling with Xi Jinping as he enters his third term as Chinese leader. The US last week further restricted China’s access to advanced American know-how, in what were some of the most stringent export controls for decades. Xi didn’t mention semiconductors in a speech on Sunday marking the opening of the Communist party’s twice-a-decade congress in Beijing, but he did pledge that China would ‘resolutely win the battle in key core technologies’. To compete with the US, China will need better tech. These new export controls will make Xi’s vision much harder to achieve. Joe