China’s Threat to Taiwan Semiconductors

Via Vivek Ramaswamy and Mike Pompeo

Xi JinpingThe all but certain arrangement for a third term as leader of the Communist Party of China marks an important milestone in the party’s process of annexing Taiwan. That creates significant risks for US investors – many of which have been overlooked.

Mr. Xi has made it clear that the recapture of Taiwan is a pillar of his national rejuvenation platform and an important national goal. It is also very important to his personal legacy. Mr. Xi’s ambitions have been tested by his need to secure a third term, as he may fear an international backlash that could threaten his hold on power. After this month, his calculations may change. The annexation of Taiwan could allow him to assert dominance and divert attention from China’s domestic problems. Mr. Xi may not want to wait, given the risk of a more assertive president in Taipei in May 2024 or Washington in January 2025. Beijing’s recent rhetoric is consistent with this hypothesis. China’s Threat to Taiwan Semiconductors

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