And that was before an apparently tense call on Thursday that lasted more than two hours, during which Chinese President Xi Jinping warned US President Joe Biden that when it comes to Taiwan, “if you play with fire, you will get burned.”
It is not yet clear when Pelosi will arrive or if the trip will take place. She would become the highest-ranking MP since House Speaker Newt Gingrich’s visit in 1997.
Although the US does not officially recognize the government of Taiwan, it does sell defenses. weapons to Taiwan is part of a long-standing policy of “strategic ambiguity” in which the US remains unclear about whether it will defend Taiwan in the event of a Chinese invasion.
There are warnings about subversion
Watershed warning regarding technical espionage. CNN recently reported on a thwarted Chinese government plan to fund an ornate garden at the National Arboretum in Washington, D.C., which US officials feared could disrupt US nuclear arsenal communications.
US officials are warning of a sharp increase in Chinese government spying activity.
There is a major economic dependence
Striving for semiconductor independence. The rare bipartisan agreement to subsidize US semiconductor manufacturing was driven largely by the realization that the US tech sector should be able to operate and produce more independently of supply chains rooted in China.
Promoting independence from renewable energy sources. Democrats have waited until the semiconductor bill becomes a slippery slope to bipartisan passage before announcing a deal on another, broader bill they will attempt pass even without the help of the Republicans.
The deal was made possible because West Virginia Senator Joe Manchin bought into it. In a radio broadcast in his home state, he said the bill would help the US develop batteries for electric vehicles.
“We rely on ourselves and Canada, Australia and our beloved countries, not relying on rogue countries and those who harm us or want to harm us,” he said.
Biden may cancel Trump-era tariffs. One of the mysteries of Biden’s economic policy is his failure to reverse the tariffs imposed by former President Donald Trump on China.
Iyengar pointed to Apple CEO Tim Cook’s warning that continued supply chain bottlenecks caused by China’s continued strict measures to curb the spread of Covid-19 could cost Apple $8 billion in the next quarter.
“There is no doubt that tech manufacturing wants to get out of China. They cannot afford the risk of constant supply disruptions and want to better control their ability to serve customers.” — Lisa Anderson, CEO of supply chain company LMA. Consulting Group,” Iyengar said. “With that said, the scale of China will not be easy to replicate, so the transition will take time and investment.”
A major escalation over Taiwan would bring both economic and diplomatic issues together and could undermine the global economy as much, if not more, than Russia’s war with Ukraine.