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    《TAIPEI TIMES》 PRC attack a greater trade risk: official

    Minister Without Portfolio John Deng poses for a picture in Geneva, Switzerland, on Tuesday.
Photo: Reuters

    Minister Without Portfolio John Deng poses for a picture in Geneva, Switzerland, on Tuesday. Photo: Reuters

    2022/06/16 03:00

    SEMICONDUCTOR HUB: Potential disruptions to global trade would be worse if China were to attack Taiwan, the world’s biggest supplier of advanced chips, John Deng said

    / Reuters, GENEVA, Switzerland

    Any Chinese military attack on Taiwan would have a greater impact on global trade flows than the Ukraine war, Minister Without Portfolio John Deng (鄧振中) said on Tuesday.

    It would lead to a shortage of semiconductors, Taiwan’s top trade negotiator added.

    Russia’s invasion of Ukraine in February has triggered commodity price hikes and food export bans, leading to fears of famine in poorer countries.

    Were China to attack Taiwan, the potential disruptions could be worse, Deng said, citing the world’s reliance on Taiwan for chips used in electric vehicles and mobile phones.

    “The disruption to international supply chains, disruption on the international economic order, and the chance to grow would be much, much [more] significant than this one,” Deng said in an interview on the sidelines of a WTO ministerial conference in Geneva, Switzerland.

    “There would be a worldwide shortage of supply,” Deng said.

    Taipei has reported no signs of an imminent attack from China, but it has raised its alert level since the Ukraine war began, wary of Beijing’s intentions.

    The Chinese government says it wants “peaceful reunification,” but reserves “other options” for Taiwan.

    Taiwan dominates the global market for production of the most advanced chips, with exports hitting US$118 billion last year, official data show.

    Deng said the nation hopes to decrease its export ratio of 40 percent to China.

    The Russian invasion is the first time in the 27-year-old WTO’s history that one member has invaded another. The body is hoping to reach a package of deals, including on food security, to ease strained supplies, but tensions generated by the war could make that more difficult, trade sources said.

    Taiwan, which has joined Western sanctions against Russia, participated in a standing ovation for Ukraine’s WTO delegate on Sunday.

    The WTO is one of the few multilateral organizations where China and Taiwan work side by side, as Beijing blocks its participation in other international groups.

    Deng said that the nation, called “Chinese Taipei” at the WTO, is so far encouraged by the WTO negotiations this week.

    Taiwan is also seeking to settle a three-year-old dispute it raised against India on tech tariffs before a formal WTO ruling.

    “We are working with them,” Deng said.

    新聞來源:TAIPEI TIMES

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