Small but essential for a plethora of reasons: this is the island of Taiwan, which occupies a prominent position, both geographically and industrially. Claimed by China since ancient times, it is de facto independent since 1949, with a troubled history behind it: in the 17th century it was under Chinese rule, then passed to Japan from 1895 until the end of World War II, and today boasts a flourishing economy (21st globally).
Taiwan is not recognised by the majority of the global powers as independent, but is treated as if it were when trading and diplomatic relations are maintained with it.
Although Nancy Pelosi’s recent visit to Taipei infuriated Beijing (which suspended food imports from the island and carried out large military exercises), there is a relative calm. Most probably, this peace is also due to the chip market: although Taiwan has ‘only’ 24 million inhabitants (a little more than a third of Italy’s population), its foundries alone produce two-thirds of the world’s microchips, which are essential for running smartphones, cars and household appliances. They are made from semiconductors (the famous crisis of which has been echoing in news headlines around the world for several months), of which the island boasts 26% of its total exports, more than the USA and Japan combined! The company that holds the leadership in semiconductor production is definitely the TMSC -which will also open a subsidiary in Arizona in 2024 to reduce the dependence on US imports- and which is ahead of the Korean Samsung and another Taiwanese company. Staying in the technology field, how can we not mention Foxconn: a large manufacturer and assembler of electronic components, which actively cooperates with Apple to assemble iPhones.
Finally, Taiwan did not even experience heavy lockdowns like China, as its careful and responsive government promptly organised itself to defend people and its economy against Covid 19: in fact, the island’s exports were among the few in the world to grow even in 2020 despite the pandemic, growing by +2.9% and reaching almost 450 billion dollars in 2021.
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✅ Edited by Eileen from the Shanghai office of Pangea Studio Associato
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