US Paves Way For Chinese Incursion Of Taiwan? Lutnick’s Semiconductor Plan Sparks Fear | World News

With China gaining ground around Taiwan and a major military build-up in Taiwanese waters, fear of an attack by Beijing is very high. Meanwhile, US Secretary of Commerce Howard Lutnick made an important statement regarding Taiwan’s semiconductor industry, which is under threat from China. Sharing details about the semiconductor, Minister Lutnick broke the historic US-Taiwan agreement, saying that Taipei would establish a semiconductor ecosystem in the US with an investment of $500 billion.

“Hundreds of companies will come here. We will build giant semiconductor industrial parks in America and bring semiconductors home,” Lutnick said.

He announced that the United States and Taiwan have reached a historic agreement under which Taiwan will invest $250 billion to build and produce chips in America. He added that Taiwan will provide $250 billion in loan guarantees to support the entire U.S. semiconductor supply chain. However, the USA limited reciprocal customs duties on Taiwanese goods to 15%.

“Taiwan imposes 20% to 15% tariffs on essential goods such as generic drugs, aircraft parts and some natural resources. The goal is to bring 40% of Taiwan’s semiconductor supply chain domestically to America. We are building full infrastructure, bringing semiconductors home and creating jobs for Americans,” Lutnick said.

This came just days after US President Donald Trump said Beijing would decide what China does in Taiwan. Answering the question of what lessons Xi can learn from Trump’s bold military operation in Venezuela, the US President said: What China will do about Taiwan depends on Chinese President Xi Jinping, but he will be “very unhappy” with a change in the status quo. “He (Xi) sees this place as part of China and it’s up to him what he does,” said Trump, and continued: “I expressed to him that I would be very unhappy if he did this, and I don’t think he would do that. I hope he doesn’t do that.”

China, in particular, claims to democratically govern Taiwan as its own territory, and Beijing has never shied away from using force to bring Taiwan under its control. Taiwan denies Beijing’s claims.

Although the United States does not have formal diplomatic ties with Taiwan, Washington is the island’s most important international supporter and is required by law to provide Taiwan with the means to defend itself. With Taiwan establishing a semiconductor base in the US, Washington will ensure the industry is safe from Chinese attack. This may give the United States another reason not to intervene in Beijing’s adventure.

However, due to Trump’s grandiose stance towards China-Taiwan relations, a military strike seems imminent. Russia’s attack on Ukraine and Israel’s war against Hamas in Gaza