Following the decision by European Commission President Ursula von der Leyen in an address in March to “de-risk, not decouple” from China, other Western democracies have taken the same approach to reduce import dependence on China.
Fresh on the heels of the energy crisis brought on by Russia’s invasion of Ukraine, China and the US have ramped up their tech battle. The Netherlands and Japan have joined the US in limiting China’s access to advanced semiconductor machinery, while the European Council will reduce critical dependencies, and de-risk and diversify supply chains where necessary.
In response, the Chinese Ministry of Commerce announced that it will impose export controls on gallium and germanium, used in semiconductors and electric vehicles, from Aug. 1.
As China accounts for 80 percent of global gallium and germanium production, its export controls have increased geopolitical tensions amid the race to develop advanced computing technology.
Former Chinese deputy minister of commerce Wei Jianguo (魏建國) stepped up the threat by saying that the export controls on chipmaking materials were “just the start” and that the country has more sanctions-related tools.
Beijing’s retaliation with economic coercion and market dependence have proven that the “de-risking” strategy and the pursuit of supply chain diversification was a timely solution.
Its decisive blow to pull the rug from under the West’s feet will do doubt leave it reeling, but it would also bolster resolve to diversify supply chains, which is what happened as a result of an incident on Sept. 7, 2010, when a Chinese trawler collided with Japan Coast Guard vessels near the Diaoyutais (釣魚台, known as the Senkaku Islands in Japan). Tokyo arrested the Chinese captain of the trawler, prompting Beijing to protest and suspend exports of rare earth minerals to Japan. The export restrictions ended, but Japan in 2012 developed an electric motor that does not use rare earth minerals. It reduced dependence on imports of the minerals from China from 86 percent in 2009 to 55 percent in 2015, while Toyota developed a new magnet for electric motors that reduces use of rare earth elements by up to 50 percent.
The Japanese government has always backed the policy, regardless of which party is in office.
The EU is drafting raw materials legislation to bolster all stages of its supply chain and diversify imports to reduce strategic dependencies on China. Concerned about Beijing using its economic influence as leverage, the EU and Japan have signed a memorandum to improve cooperation on semiconductors, focusing on the establishment of an early warning system to share information promptly and avoid supply chain disruptions.
This is especially critical as the EU imports 27 percent of its gallium and 17 percent of its germanium from China, and the West relies heavily on China for critical raw materials and distillation. The EU might also have realized that cutting imports of fuel from Russia and accelerating investment in renewable energy have increased dependence on China, as Beijing controls 80 to 90 percent of the products needed for a green transition.
The US has underscored that it will engage with allies and partners to address supply chain issues, meaning that reducing dependence on China will become a shared consensus.
Washington might soon take a leaf out of Japan’s book.
Chang Meng-jen is chairman of Fu Jen Catholic University’s Department of Italian Language and Culture, and coordinator of the university’s diplomacy and international affairs program.
Translated by Rita Wang
Concerns that the US might abandon Taiwan are often overstated. While US President Donald Trump’s handling of Ukraine raised unease in Taiwan, it is crucial to recognize that Taiwan is not Ukraine. Under Trump, the US views Ukraine largely as a European problem, whereas the Indo-Pacific region remains its primary geopolitical focus. Taipei holds immense strategic value for Washington and is unlikely to be treated as a bargaining chip in US-China relations. Trump’s vision of “making America great again” would be directly undermined by any move to abandon Taiwan. Despite the rhetoric of “America First,” the Trump administration understands the necessity of
In an article published on this page on Tuesday, Kaohsiung-based journalist Julien Oeuillet wrote that “legions of people worldwide would care if a disaster occurred in South Korea or Japan, but the same people would not bat an eyelid if Taiwan disappeared.” That is quite a statement. We are constantly reading about the importance of Taiwan Semiconductor Manufacturing Co (TSMC), hailed in Taiwan as the nation’s “silicon shield” protecting it from hostile foreign forces such as the Chinese Communist Party (CCP), and so crucial to the global supply chain for semiconductors that its loss would cost the global economy US$1
US President Donald Trump’s challenge to domestic American economic-political priorities, and abroad to the global balance of power, are not a threat to the security of Taiwan. Trump’s success can go far to contain the real threat — the Chinese Communist Party’s (CCP) surge to hegemony — while offering expanded defensive opportunities for Taiwan. In a stunning affirmation of the CCP policy of “forceful reunification,” an obscene euphemism for the invasion of Taiwan and the destruction of its democracy, on March 13, 2024, the People’s Liberation Army’s (PLA) used Chinese social media platforms to show the first-time linkage of three new
Sasha B. Chhabra’s column (“Michelle Yeoh should no longer be welcome,” March 26, page 8) lamented an Instagram post by renowned actress Michelle Yeoh (楊紫瓊) about her recent visit to “Taipei, China.” It is Chhabra’s opinion that, in response to parroting Beijing’s propaganda about the status of Taiwan, Yeoh should be banned from entering this nation and her films cut off from funding by government-backed agencies, as well as disqualified from competing in the Golden Horse Awards. She and other celebrities, he wrote, must be made to understand “that there are consequences for their actions if they become political pawns of