As China’s leader Xi Jinping was feted at last week’s state dinner, he stated that he hoped the United States would adhere to the “correct position of opposing Taiwan independence” and handle the Taiwan question with “caution” and that Beijing’s position on “safeguarding national unification and territorial integrity” was clear.
The pushback on Xi’s comments appeared to be muted at best, with little said of America’s commitment to protecting the status quo and that the future of Taiwan is up to the will of the Taiwanese people.
All too often we foolishly think of Taiwan in isolation.
It is a problem, a flashpoint, and most dangerously, a “bargaining chip.”
On the contrary, preserving a self-governing Taiwan, a delicate balancing act, is the whole ballgame for the United States and essential to be taken seriously as a Pacific power.
Taiwan is the keystone locking in our security architecture in the Asia-Pacific with our treaty allies, the Philippines, Japan, and South Korea. A state visit for any of these allies would have been far more logical and appropriate than the fawning reception given to the leader of our prime adversary and threat – the People’s Republic of China.
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Despite many opportunities to respond to Xi Jinping’s veiled threats, not a word was spoken about the need to oppose any Chinese use of force or coercion to change the status quo of a self-governing Taiwan.
Taiwan is vitally important to Americans for multiple reasons.
It is a vibrant democracy of 24 million citizens which we have supported since 1949.
It is America’s fourth-largest trading partner and a key source of technology, including advanced semiconductor chips crucial to our economic and national security. This is evidenced by the iShares Taiwan ETF (EWT) being up 80% year to date, with Taiwan Semiconductor (TSM) having a 22% weighting in the index and ETF.
The United States must send clear and consistent signals that China cannot use force or coercion to change the status quo – and that doing so would be unacceptable to America and its allies.
This needs to be coupled with supporting Taiwan’s belated but serious defense reform. In May, it passed a supplemental bill appropriating $25 billion for the military. Expanding its domestic drone industry is especially important, as is an attitude of “whole-of-society resilience,” if China imposes a blockade – an act of war.
This is all supported by Taiwan’s economy growing at a blistering pace, as well as providing new sources of funding if President Trump releases his hold on a $14 billion arms sale that has already been smoothly moving its way through Congress until paused by the White House. The 1979 Taiwan Relations Act mandates arms sales with the precedent that China has no say in the matter.
Taiwan has also shifted to become less reliant on the Chinese economy, as over the last 15 years, the proportion of investment in China has fallen from 80% to about 10%. This reflects that Taiwan’s leading companies are and will continue to invest hundreds of billions of dollars in the U.S. economy.
Unfortunately, while all of this should be welcomed, we are sending mixed messages, confusing allies and encouraging those bent on breaking the Taiwan status quo.
President Trump’s May visit to Beijing and his arms sales as a “bargaining chip” comments raised concerns that he would sell out the island’s interests in hopes of a grand deal. This stumble was an unforced error, causing damage to America’s credibility amongst our regional allies.
Congress needs to assert its prerogatives and push the Taiwan arms deal forward and reassert the strategic priority of the Asia Pacific region as well as our allies in the region, starting with Japan, South Korea and the Philippines.
Finally, the next state dinner should absolutely be for Japan’s Prime Minister Takaichi Sanae, the leader of America’s indispensable ally and the cornerstone of our economic and national security in the region.
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