U.S. Speaker of the House Nancy Pelosi is reportedly scheduling a trip to Taiwan in August, paying visit to the world's leading producer of semiconductors and the most important supplier of chips to the U.S. The self-governing island produces 92% of the world's most advanced chips, including the chipsets that power iPhones and most other U.S. tech.
But despite the booming trade between Taiwan and the U.S., political relations remain complicated. The Chinese government in Beijing claims sovereignty over Taiwan and vehemently resists any move by Washington to recognize the Taiwanese government in Taipei.
Now reports of Pelosi's unconfirmed visit have stoked tensions between the U.S. and China so high that even officials from Washington are advising the speaker against going.
Threatened retailiation
The Financial Times reported last Tuesday that the speaker was considering a stop in Taiwan during a tour of Asia, prompting immediate objection from Beijing.
“The Chinese side has repeatedly made clear to the US side our serious concern over Speaker Pelosi’s potential visit to Taiwan and our firm opposition to the visit,” Chinese foreign ministry spokesperson Zhao Lijian said in a press briefing Monday, confirming Beijing had warned U.S. officials against Pelosi's potential visit.
“We are getting seriously prepared,” Zhao said Monday, hinting Pelosi's visit could prompt a retliation.
Pelosi's visit would be the highest-profile trip by a U.S. politician to Taiwan in decades. Beijing has conducted military exercises near Taiwan to protest U.S. attempts to form a deeper political partnership wtih Taipei, and has threatened war in the event Taiwan declares formal independence.
But U.S. officials warn that China's rhetoric in advance of Pelosi's potential visit is stronger than usual. Last Wednesday, President Joe Biden, who is preparing for a call with Chinese president Xi Jinping at the end of the month, told reporters that “the military thinks [a Pelosi visit is] not a good idea right now.”
The CHIPS Act
Reports speculate that China's more aggressive tone could be due to Pelosi's high-ranking status, or because the potential trip is scheduled for the same time as when China convenes the Beidaihe conclave, a pivotal annual meeting of Communist Party officials.
But the furore over Pelosi's supposed visit demonstrates the precarious situation of the U.S. chip supply, highlighting why Congress is moving to pass the $52 billion in funding for U.S. semiconductor manufacturers promised under the CHIPS Act and shore up America's domestic supply of semiconductors.