Chairman of Taiwan Caixin Media, Xie Jinhe, posted on Facebook on May 23 his interpretation of Taiwan’s absence from the first round of the Indo-Pacific Economic Framework (IPEF).
The framework has 13 members, including the U.S., Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam.
Xie said that the United States might not want to stimulate the Chinese regime too much. But on the other hand, Taiwan might be thinking about the future world economy and how to choose the right side.
White House national security adviser Jake Sullivan said on May 22 that Taiwan would not be part of the launch of the Indo-Pacific Economic Framework. However, he added that the U.S. seeks to deepen its economic partnership with Taiwan. He also reiterated that the U.S. hopes for peace across the Taiwan Strait and is unhappy to see a unilateral change in the status.
Xie Jinhe said that in recent years, from the trade war between the United States and China to the technological war to the economic war, many small and medium-sized enterprises have shut down their production bases in China, which is evident in the decline in revenue of Taiwan’s Compal, Quanta and other companies in April.
Xie pointed out that now Apple has taken the lead in stating that its new major production bases will be Vietnam and India.
Biden’s first trip to Asia was to visit South Korea. Xie said that the most important thing is that South Korea has moved from Moon Jae-in’s pro-communist line to Yin Xiyue’s pro-American line. Samsung had been suppressed in the past, but now it is resurrected. Biden’s first stop in South Korea is Samsung because the United States is trying to stabilize the semiconductor industry. As a result, the world’s essential semiconductor settlements, from TSMC and below, are all under the U.S. camp.
Economist Wu Jialong posted on Facebook on May 23, pointing out that the U.S. wants to promote the decoupling of manufacturing from China. Southeast Asia and India have a large enough labor force to replace China’s supply chain.
Wu said that the redeployment of the supply chain without China requires a process, and Taiwan is one of the crucial elements in reaching this target. He also pointed out that for the U.S to promote the Indo-Pacific strategy, maintain peace and stability in this region, and create a rules-based international order, it needs a key factor: Taiwan.
He said that the U.S is very busy in Asia and has to consider geopolitical security and economic security. All the things it is engaged with are related to Taiwan. Without Taiwan, the U.S. Indo-Pacific strategy and IPEF would be hollowed out. So with or without official status, Taiwan is still the top priority.