On Tuesday, September 23, Taiwan implemented unilateral export control measures for the first time against a country, restricting the export of semiconductors to South Africa, citing the actions of the South African authorities as a threat to Taiwan’s national security. Analysts believe that this move signifies Taiwan beginning to leverage its chip advantage to counter China’s attempts to undermine Taiwan’s presence internationally.
For a long time, China has been exerting pressure internationally to limit Taiwan’s participation and enticing Taiwan’s allies to cooperate with Beijing, isolating Taiwan in the process.
According to an announcement by Taiwan’s Ministry of Economic Affairs this Tuesday, 47 items such as integrated circuits, chips, and memory chips bound for South Africa will require approval from the Ministry before export.
This action reflects Taiwan’s economic influence, as Taiwan Semiconductor Manufacturing Company (TSMC) produces some of the world’s most advanced chips essential for automobiles, artificial intelligence, and industrial production.
Bloomberg reported on September 24 that, according to a knowledgeable Taiwanese official, the chip restriction reflects Taiwan increasingly using economic policies to achieve diplomatic strategic goals. The official, who chose to remain anonymous due to the sensitivity of the issue, added that other unfriendly countries might also face similar sanctions.
“By leveraging Taiwan’s position in the global chip supply chain, it appears that Taipei is attempting to establish independent deterrent power on the world stage,” Wen-ti Sung, a researcher at the Atlantic Council Global China Center, told Bloomberg. He further stated that in the future, other governments may follow Taiwan’s lead in implementing similar policies.
In recent years, export controls on semiconductors and chip manufacturing equipment have become a core battleground between the US and China. The US has been pressuring allies such as the Netherlands, South Korea, and Japan to strengthen controls on chip exports to prevent advanced chips and their technology from flowing to China.
With Tsai Ing-wen taking a tougher stance against Chinese provocations, China may be the most affected by Taiwan’s chip control measures. Earlier this year, Taiwan blacklisted Huawei and Semiconductor Manufacturing International Corporation (SMIC), prohibiting the two companies from obtaining key chip manufacturing technology.
China expressed discontent with Taiwan’s actions, with a spokesperson for the Foreign Ministry, Guo Jiakun, stating at a routine press conference in Beijing on Wednesday that Taiwan’s actions towards South Africa were deliberately disrupting the global supply chain.
Cathy Fang, an analyst at the Taiwan Democracy and Social Research Center in Taipei, told Bloomberg that South Africa’s policy is still in a “notification period,” indicating that the Taiwan government is leaving room for negotiation and may make adjustments if necessary.
“The global push for indigenous semiconductor manufacturing has been ongoing for a while, driven by broader strategic considerations,” she added.
In 1997, South Africa cut official ties with Taiwan and established relations with Beijing. The core of this dispute revolves around the forced relocation of Taiwan’s representative office in South Africa.
Taiwan’s Ministry of Foreign Affairs stated on Tuesday that this decision was made in response to South Africa’s attempt to downgrade the status of Taiwan’s representative office and relocate it from the administrative capital of Pretoria to Johannesburg and Cape Town.
Taiwan stated that South Africa began pressuring it shortly after hosting the 2023 BRICS Summit attended by Chinese leader Xi Jinping, demanding the relocation of the representative office from the capital to Johannesburg in 2023. South Africa has been intensifying pressure in recent months as it prepares for the G20 summit in November, where it is expected that Xi Jinping will attend.
Another Taiwanese official, who chose not to disclose their name due to sensitivities, stated that the chip restriction measure aims to prompt the South African government to negotiate with Taiwan regarding the relocation of the representative office.
Amid ongoing pressure and coercion from Beijing, urging countries to sever ties with Taiwan in exchange for relations with China, Taiwan currently has only 12 formal diplomatic partners. Additionally, Taiwan’s informal exchanges with other countries are facing increasing pressure from China.
Bloomberg reported that William Yang, a senior analyst for Northeast Asia at the International Crisis Group (ICG), described Taiwan’s export restrictions against South Africa as purely “defensive” and could potentially foster unity in some regions.
He added, “This move might even deepen cooperation in supply chain with like-minded democratic countries.”