China Expresses Displeasure Over US-Taiwan Microchip Deal

China has voiced its displeasure over the recent trade agreement between the United States and Taiwan concerning the development of microchips. The agreement aims to boost semiconductor production in the US, reducing reliance on foreign sources, in exchange for tariff reductions on Taiwanese goods.

Under the agreement, Taiwanese semiconductor companies will invest at least $250 billion in the United States to develop microcircuit production. Additionally, $250 billion in credit guarantees are planned to strengthen the semiconductor ecosystem in the US.

Taipei, for its part, will support American investments in Taiwan's semiconductor industry, artificial intelligence, and defense technologies. Taiwan manufactures over half of the world's semiconductors, including the most advanced ones used in smartphones and data centers.

Chinese Foreign Ministry spokesperson Guo Jiakun stated that China opposes any agreement that affects its sovereignty or has an official character with Taiwan, which it considers an integral part of its territory. He called on the US to respect the 'One China' principle.

US Commerce Secretary Howard Latnik emphasized the need for US self-sufficiency in semiconductor production for national security reasons.