Singaporean George Yeo cries "冤枉!" and says he's shocked and upset that Taiwan unexpectedly accused him of being China's dog

[superpower]

https://www.channelnewsasia.com/bus...oars-economic-worries-and-weaker-yuan-3773761

Weak yuan that's why people are buying gold.

It's not de-dollarisation. It's a myth it can never happen.

Here's a primer for the clueless on what dedollarization is, and is not. It is not about dumping the USD for the RMB, or making a non-freely convertible RMB the reserve currency (last thing the CCP would want), but more about reducing the exposure to the USD and trading with other countries using each other's currencies. It is a gradual but inevitable process as more and more countries hop onto the bandwagon. The USD reserve status will not be threatened anytime soon, but will be gradually weakened as its share of the world's reserve currencies and world trade drops.​

​

Explained: What Is Dedollarisation & Why Are Countries Dumping The US Dollar?​

Vanya Gautam
Updated on Apr 17, 2023, 18:46 IST-8 min read -87 Shares

Earlier this month, while facing criminal charges, former US President Donald Trump had warned "Our currency (US Dollar) is crashing and will soon no longer be the world standard, which will be our greatest defeat in 200 years".

His warning came amid rising interest in countries to go towards dedollarisation. In recent years, China, Russia and Brazil have been among the expanding list of nations that have embarked upon the path of dedollarisation. Earlier this year in January, it was reported that Iran and Russia will jointly issue a new cryptocurrency backed by gold, to serve as a payment method in foreign trade.

Amidst all this, it's becoming clearer that a growing list of countries is going towards dedollarisation. But what exactly is dedollarisation, and why are countries taking that path? Let's help you understand.

As the name suggests, dedollarisation is a term that refers to the process wherein countries tend to reduce their reliance on the US dollar as a reserve currency, medium of exchange, and also a unit of account.

While it's a no-brainer that the US dollar has long held a dominant position in the global financial system, this recent shift towards dedollarisation represents a critical transformation with significant implications for the future of international trade, investment, and monetary policy.

As the world becomes more and more interconnected, the need for a stable and equitable financial system is paramount. And with that, the overreliance on the US dollar as a reserve currency has to some extent led to vulnerabilities and imbalances in the global economy. These factors, combined with the growing economic power of emerging markets and their desire for a more diversified and resilient financial architecture, have spurred many countries' interest in going ahead with dedollarisation.

Role of Reserve Currencies​

Simply put, reserve currencies are foreign currencies held by central banks and other monetary authorities to facilitate international transactions, stabilize exchange rates, and bolster financial confidence, as per Kumar Vivek, Deputy Commissioner at the Ministry of Finance, Government of India.

These currencies are typically characterized by their stability, liquidity, and wide acceptance in global markets, which make them attractive for holding and conducting international transactions.

The US dollar has since long been the prominent reserve currency, a status cemented in the aftermath of World War II with the establishment of the Bretton Woods system. The dollar's ubiquity in global trade, finance, and investment has endowed it with significant advantages, such as lower transaction costs, reduced exchange rate risk, and the ability to finance deficits at relatively lower costs.

And that's not all. The US dollar's prominence has been underpinned by the size and strength of the US economy, the deep and liquid US financial markets, and the perception of the US as a bastion of stability.

However, a single reserve currency system, particularly one centred around the US dollar, has its own set of drawbacks. The "exorbitant privilege" afforded to the US allows it to maintain large current account deficits and accumulate significant amounts of debt, which can contribute to global imbalances and economic instability. Additionally, the dollar's dominance renders other economies susceptible to fluctuations in US monetary policy, often leading to spillover effects that may not align with their domestic economic conditions. Furthermore, countries with substantial dollar-denominated debt may face heightened vulnerability to currency fluctuations and capital flow reversals, exacerbating the risk of financial crises, Mr Vivek mentioned in his Linkedin post last week.

In recent years, several countries and regions have embarked on the path towards dedollarisation, driven by a combination of geopolitical, economic, and strategic considerations. Notable examples include China, Russia, Brazil and the European Union, each of which has taken steps to reduce their reliance on the US dollar in international transactions and financial markets.

Some countries, like China and Russia, have sought to diminish the influence of the US dollar as a means of countering perceived American hegemony and mitigating the impact of US sanctions. Other countries, particularly those in the Eurozone, have pursued dedollarisation to promote the international use of their currency, the euro, in a bid to enhance their global economic standing and secure greater financial autonomy, as per the govt official's post.

Yet another reason stems from a desire to foster a more diversified and resilient global financial system, one that is less susceptible to the idiosyncrasies of a single dominant reserve currency. In this context, dedollarisation is viewed as a means to reduce the risks associated with an overreliance on the US dollar, while simultaneously promoting stability and mitigating the potential for economic contagion.

Challenges Towards Dedollarisation​

As per Kumar Vivek, Deputy Commissioner at the Ministry of Finance, Government of India, several key challenges must be addressed to ensure a smooth and stable transition away from the US dollar-centric system.

Firstly, the potential impact on global financial stability warrants careful consideration. As countries reduce their reliance on the US dollar, adjustments in the composition of global reserve assets may lead to shifts in capital flows and changes in asset prices. In the absence of adequate policy coordination and risk management, these fluctuations could create financial instability, particularly in emerging markets and countries with substantial dollar-denominated debt. Consequently, policymakers must be vigilant in monitoring these dynamics and taking appropriate measures to safeguard financial stability.

Secondly, creating a viable alternative to the US dollar presents a formidable challenge. To achieve the requisite degree of stability, liquidity, and acceptability, an alternative reserve currency must be underpinned by a robust economy, deep and liquid financial markets, and sound monetary and fiscal policy frameworks. Currently, no single currency fully meets these criteria, although the euro and the Chinese yuan have made strides in this regard. However, fostering a multicurrency reserve system may alleviate some of the risks associated with reliance on a single dominant currency while providing the benefits of diversification.

Lastly, dedollarisation could result in increased volatility in currency exchange rates, particularly during the initial phases of transition. As market participants adjust to the changing landscape and reassess their currency preferences, exchange rate fluctuations could become more pronounced. This, in turn, could impact trade, investment, and capital flows, particularly for countries with less developed financial markets or limited policy tools to manage exchange rate volatility. Thus, it is essential for policymakers and market participants to closely monitor these developments and deploy appropriate policy measures to mitigate potential disruptions.

In summary, while dedollarisation presents opportunities for a more diversified and resilient global financial system, it also poses significant challenges that must be carefully managed to ensure the preservation of global financial stability and sustained economic growth.

Internationalisation Of Other Currencies​

The process of dedollarisation is inextricably linked to the internationalisation of other currencies, as the reduction in the global reliance on the US dollar necessitates the emergence of viable alternatives. In this context, the Euro and the Chinese Yuan have emerged as the leading contenders to assume a more significant role in the global financial system, the govt official's post mentioned.

The internationalisation of these currencies entails their increased usage in cross-border transactions, investment, and as reserve assets, which can offer several potential benefits. Firstly, a more diverse reserve currency system can contribute to enhanced global financial stability by reducing the vulnerability to shocks emanating from a single dominant currency. Secondly, the internationalisation of currencies can bolster the financial autonomy of the issuing countries, providing them with greater policy flexibility and insulation from external economic influences.

Should India Focus on Dedollarisation?​

Now comes the question of whether India too should ride on this path of dedollarisation. Last year, RBI had allowed international trade settlements in Rupee amid the Ukraine-Russia war.

Mr Vivek mentioned that as the global financial landscape undergoes a transformative shift towards dedollarisation, developing countries such as India must carefully weigh the potential benefits and risks associated with this transition.

On the one hand, dedollarisation offers several potential benefits for developing countries. Moving away from the US dollar could reduce their vulnerability to fluctuations in US monetary policy and enhance their monetary autonomy, enabling them to better tailor policy actions to their domestic economic conditions. Moreover, the diversification of reserve currencies could provide a buffer against currency fluctuations and capital flow reversals, reducing the likelihood of financial crises and improving overall financial stability.

However, dedollarisation also presents challenges and potential costs for developing countries. As developing countries transition away from the US dollar, they may face heightened exchange rate volatility, which could impact trade, investment, and capital flows. Additionally, the development of deep and liquid domestic financial markets – a prerequisite for currency internationalisation – could prove to be a formidable challenge for countries with less developed financial systems. Furthermore, the potential costs associated with the transition, such as adjustments to existing trade and financial arrangements, may be significant and could strain limited resources.

In light of these considerations, developing countries like India should adopt a prudent and measured approach towards dedollarisation. Policymakers must strike a delicate balance between the potential benefits of reducing reliance on the US dollar and the risks and costs associated with such a transition.

https://www.indiatimes.com/worth/ne...on-and-why-are-countries-doing-it-599604.html

 

[superpower]

De-dollarisation is the new decolonisation​

• Everyone, whether America’s vassals or enemies, needs to move away from the dollar when their greenback-denominated assets can be taken from them on Washington’s say-so

Alex Lo
Published: 9:00pm, 4 Sep, 2023

To reword Charles Baudelaire about the greatest trick played by the devil was to have convinced the world he didn’t exist, let’s just say the greatest trick the United States ever pulled was convincing the world it wasn’t an empire.

To be so convincing, you first need to convince yourself. That’s not too difficult as most Americans like to think their country was and is a democratic republic. This highly convenient (self-)deception was epitomised by George W. Bush when he told West Point graduates in June 2002 – after the invasion of Afghanistan, but before that of Iraq – that “America has no empire to extend or utopia to establish”.

In his telling, America had no territorial ambitions, never sought an empire and only wanted freedom for themselves and others. Of course.

How ironic that this came from someone who presided over, and then squandered, the short-lived unipolar moment when the US truly dominated the whole world.

In the old days, to win independence meant fighting to recover your land. In the 21st century, securing your autonomy means freeing yourself from dollar domination.

Ancient empires controlled land; modern empires run the world economy​

Empires of old controlled large swathes of other people’s lands and resources. The transformation of the world with the emergence of capitalism meant Anglo-American empires came to control the global economy as the source of true hegemonic power, not just through land. Some scholars have argued the Dutch did it first in the 17th century, but it was on a much smaller scale.

The British empire, of course, controlled so much foreign land the sun was said to never set on it. But its true innovation as a global empire was to have secured worldwide trade routes, dominated foreign economies and sold the world on an ideology of free trade, but one regulated out of London and enforced by the British navy. Hence the first globalisation happened during Pax Britannica.

All that supposedly justified British imperialism for the universal betterment of mankind. Incidentally, Karl Marx may have been the first to draw the connection between the British pioneering abolition of the global slave trade, and the rise of free trade and industrial capitalism. In Volume 1 of Capital, he argues that subsistence wage labourers were far more efficient and profitable under capitalism. Quite simply, capitalists exploited workers; feudal lords owned serfs; those were examples of social relationships under different economic systems. It was also why institutional slavery, outmoded as an uneconomic form of labour, was phased out in the modern world.

Despite the most profound historical amnesia, the US did start a career as a budding empire by taking over other people’s lands, starting on its own continent.

It’s fascinating how people rarely draw the connection between the US mainland and its foreign possessions. For example, they tend only to remember the imperial Japanese attack on Pearl Harbour. But besides Hawaii, the Japanese that day also attacked Guam, the Philippines, and Midway and Wake islands, all of them, if you like, US imperial possessions, or as Americans prefer, US territories. There were others: Puerto Rico, American Samoa, and the US Virgin and Northern Mariana Islands.

But for the world’s greatest empire, it did physically possess so little foreign land, comparatively speaking. And in time, especially after the second world war, land for imperial possession became more scarce and far less important than capital and its unprecedented dominance and control of the world economy. The US dollar became the primary financial instrument of global control, which was of course, backed up by hundreds of military bases divided into five global commands under the Pentagon. It was less a matter of taking over your land but more about integrating your country into the dollar-led global economy, whether you wanted to or not.

​

‘The dollar is our currency but your problem’​

For all his great cynicism as exemplified by this infamous dictum of his, Richard Nixon, or at least those in his White House who helped him run the US economy, understood how the world operated economically in relation to the greenback.
That was why they put the final nail into the coffin of the classical Bretton Woods and freed the dollar from gold. At least under the original idealistic Keynesian conception of post-war global trade and finance, the system was supposed to benefit everyone. That arguably worked during the immediate post-war reconstruction period for Europe when Washington effectively underwrote the system.

After all, the US derived disproportionate benefits from it. For owning the main currency for global reserve, transaction and trade, the US didn’t have to worry about balance of payments like everyone else. But, being the only currency tied to gold, it couldn’t devalue like everyone else either to improve its trade and payment positions. The dollar therefore became a problem for the US but a benefit for booming traders such as Japan and West Germany. That became a particularly acute problem with the costly war in Vietnam. By free-floating the dollar, Nixon fully intended to make the dollar everyone else’s problem.

That was an achievement of Nixon’s, at least from the US perspective that has not been appreciated often enough by Americans.
Since peaking at 40 per cent in 1960, the US share of the world economy has dropped to about 16 per cent today, compared to China’s 18.5 per cent. But being the main reserve currency has its privileges. One main advantage is that it’s hard to replace for its availability, liquidity and reliability. Once it has dominated trade invoicing and global credit expansion, and maintained its safe haven status, it’s hard to dethrone.
The petrodollar and other key commodities still quote in the dollar, and a large number of smaller economies, such as Hong Kong’s, still peg their currencies to the greenback, so the dollar has been as valuable as ever, a phenomenon sometimes called Bretton Woods II.

​

Weaponising the dollar​

To be sure, it has been a gradual historical process. The dollar was, for the longest time, a carrot. Now, it’s also a stick. Until quite recently, despite its egocentric monetary and foreign policies, the US had kept the use of its currency fairly neutral in the international arena. Dollar neutrality was no doubt a conscious policy in Washington, and a general understanding with the rest of the world. Its weaponisation is a very recent phenomenon. Likewise, Swift, the global information system for financial transactions and payments, was supposed to be neutral. But dollar-based transactions dominate it, so it too has been compromised by the US.
It’s not an accident that as US sanctions against other countries, persons and entities jumped by nearly 1,000 per cent between 2000 and 2021, the dollar became a financial weapon of choice.
Even so, few people anticipated that the US would freeze almost half of US$630 billion reserves of Russia’s central bank and mostly cut off the country’s access to Swift after Moscow launched its invasion of Ukraine.

To America’s enemies, friends and everyone in between, that means your country’s wealth, at least those assets denominated in dollars, can suddenly be confiscated or frozen.

During the 2019 unrest against the Hong Kong and Chinese governments, some people speculated whether Washington would cut off the city’s access to the US dollar, effectively ending the currency peg and collapsing the Hong Kong dollar. Most locals thought the US wouldn’t do something like that.

Well, Russia, anyone! It’s not paranoia any more; it can happen with the stroke of the US president’s pen on an executive order. It may be done as an act of imperial power. More likely, it will be carried out in the name of democracy, freedom and human rights. But whatever you call it, the imperial Lord giveth and taketh away. Maybe you consider it justice, maybe it’s just caprice. But if that’s not the power of an empire, I don’t know what is.

That’s why everyone – whether America’s vassals or enemies – wants to move away from the dollar. To be sure, that’s extremely difficult and will take a long time. But remember, decolonisation took decades and two world wars. Given the norm-breaking behaviour of the hegemon that increasingly disregards the rules of the global financial and trade systems, de-dollarisation is not a choice, but a necessity for the rest of the world.

https://www.scmp.com/comment/opinion/article/3233383/de-dollarisation-new-decolonisation

 

[superpower]

Yes I can't understand why China would provoke WW3 because their ego was butt hurt more than a 100 years ago.

Grow up man, china.

WWIII? You kiddin' me? When push comes to shove, the US will just stay out of what is essentially an internal affair. Vietnam and Korea were painful lessons.
(Imagine the highly implausible scenario where the PAP is defeated by the WP in a GE and retreats to Sentosa to regroup for a comeback. Get it?)

Butt hurt? Sure. But it's more than just closure for a century of humiliation. It's about territorial integrity and sovereignty, something any nationalistic government understands. Try taking Hawaii away from the US. Just so, only Singapore would sell Christmas Island away for a song.

 

[congo9]

USA has grown and knows the commie are a bunch of liars and betrayal. They needed Korea , Japan and Taiwan to hold down the China.

 

[congo9]

Who in this world has the might and military power of USA ??
Of course everyone runs for cover under the US protection umbrella.

 

[mojito]

A real dog will have the decency to admit it is a dog. Dogs are also known for their loyalty.

So to call him a dog.... is it fair.... to the dog?

Dogs bark be cause their masters allow them to. Some can't accept they no better than a dog.

 

[hofmann]

WWIII? You kiddin' me? When push comes to shove, the US will just stay out of what is essentially an internal affair. Vietnam and Korea were painful lessons.
(Imagine the highly implausible scenario where the PAP is defeated by the WP in a GE and retreats to Sentosa to regroup for a comeback. Get it?)

Butt hurt? Sure. But it's more than just closure for a century of humiliation. It's about territorial integrity and sovereignty, something any nationalistic government understands. Try taking Hawaii away from the US. Just so, only Singapore would sell Christmas Island away for a song.

If your calculus is right, China would have shoved the USA long ago, no?

Territorial integrity? We don't see china pushing as aggressively in their border disputes with China and Russia. Even with India, they only dare to fight with Sticks and Stones to break their bones.

Which leaves us with this: they want to poke America in the Pacific. Or use Taiwan to whip up nationalistic sentiments when things go south domestically.

 

[superpower]

If your calculus is right, China would have shoved the USA long ago, no?

Of course not. There might be a problem with your English comprehension though (I know you're Eurasian but...): 'Push' and 'shove' here refer to the US' actions, basically agitating for independence and actually declaring it. The DPP is a merely a puppet of the MIC.

NO PLA general, not even Xi himself wants to go to war over Taiwan, because that would mean a possible nuclear WW3 between the US and China.
The clueless Taiwanese ought to have realized by now that they're merely a proxy state for the US, much like Ukraine in their war with Russia.

All China is asking for from Taiwan (and their sponsor the US): 1) no declaration of independence 2) no arm sales to Taiwan. Just maintain the status quo according to the Three Joint Communiques.

Xi is way smarter (and less rash) than Putin. You don't see him entering the Russo-Ukraine war. (You bet he's watching how Russia is digging its own grave fighting a needless war.) And you won't see him starting an invasion of Taiwan. Unless Taiwan declares independence (at the instigation of the US), in which case all bets are off. That's the line in the sand for the PRC.

 

[superpower]

Deleted

 

[borom]

Everyone is entitled to their views although in some places, you are easily sued for defamation until pants drop.
We have too many self proclaimed experts like Bilahari, Kishore and now George going around telling the whole world their views when they have neither any special insight, inside connection, or influence on the decision making process .
What I find strange is that these people do not talk about PAP or singapore politics openly.

 

[laksaboy]

Everyone is entitled to their views although in some places, you are easily sued for defamation until pants drop.
We have too many self proclaimed experts like Bilahari, Kishore and now George going around telling the whole world their views when they have neither any special insight, inside connection, or influence on the decision making process .
What I find strange is that these people do not talk about PAP or singapore politics openly.

My hunch is that the entire MFA fraternity, past and present, has been compromised by the CCP regime.

 

[hofmann]

NO PLA general, not even Xi himself wants to go to war over Taiwan, because that would mean a possible nuclear WW3 between the US and China.
The clueless Taiwanese ought to have realized by now that they're merely a proxy state for the US, much like Ukraine in their war with Russia.

All China is asking for from Taiwan (and their sponsor the US): 1) no declaration of independence 2) no arm sales to Taiwan. Just maintain the status quo according to the Three Joint Communiques.

Xi is way smarter (and less rash) than Putin. You don't see him entering the Russo-Ukraine war. (You bet he's watching how Russia is digging its own grave fighting a needless war.) And you won't see him starting an invasion of Taiwan. Unless Taiwan declares independence (at the instigation of the US), in which case all bets are off. That's the line in the sand for the PRC.

You just contradicted yourself on WW3 and just rehashed the status quo on Taiwan. Nothing much has been added to the discussion. No one in Taiwan has threatened independence yet. It's all a figment of Xi's imagination. I'd check his water supply if I were him. CIA might have spiked the national water supply with paranoia inducing agents.

It's ok, take a deep breath and come back when you're ready.

 

[laksaboy]

You just contradicted yourself on WW3 and just rehashed the status quo on Taiwan. Nothing much has been added to the discussion. No one in Taiwan has threatened independence yet. It's all a figment of Xi's imagination. I'd check his water supply if I were him. CIA might have spiked the national water supply with paranoia inducing agents.

It's ok, take a deep breath and come back when you're ready.

Don't get sucked into their petty word games, Taiwan is unto itself a sovereign country, with its own currency and flag and borders.

If not, I challenge all the mainland Tiongs to travel to Taiwan without a passport, and let's see what happens.

 

[congo9]

By stopping weapons sales to Taiwan means that Taiwan will be weaker and weaker as time goes by. But Taiwan has TSMC . They are the most advanced chip manufacturing facility and technique. Too bad, US needed the manufacturing facility and techniques in order to stay relevant. Or else china might take over USA as world leaders economic ally and militarli.

 

[superpower]

By stopping weapons sales to Taiwan means that Taiwan will be weaker and weaker as time goes by. But Taiwan has TSMC . They are the most advanced chip manufacturing facility and technique. Too bad, US needed the manufacturing facility and techniques in order to stay relevant. Or else china might take over USA as world leaders economic ally and militarli.

You needn't worry: the US has already stated that in the event of a Chinese invasion of Taiwan, they'll bomb TMSC. That's Uncle Sam's 'I got your back' for you. Remember, there are no permanent friends, only permanent interests.
--------

US Threatens To ‘Blow Up’ Taiwan’s Semiconductor Manufacturing Firm If China Invades The Island; Taipei Unhappy​

By
Ashish Dangwal
May 11, 2023

Taiwan’s Defense Minister, Chiu Kuo-cheng, has responded to US Congressman Seth Moulton’s proposal, stating that the Taiwanese armed forces would not stand for the destruction of any of their facilities.

Congressman Moulton recently suggested that the US should warn China by threatening to target Taiwan Semiconductor Manufacturing Co. (TSMC) if China were to attack Taiwan.

During a conference hosted by the Milken Institute, a California-based think tank, US Congressman Seth Moulton was asked about the potential deterrent impact of US chip policy on China.

In response, Moulton suggested that the US should explicitly warn China that targeting Taiwan could destroy Taiwan Semiconductor Manufacturing Co. (TSMC).

“The US should make it very clear to the Chinese that if you invade Taiwan, we’re going to blow up TSMC,” he said.

https://www.eurasiantimes.com/us-threatens-to-blow-up-taiwans-semiconductor-manufacturing/

The statement made by US Congressman Seth Moulton was promptly challenged by Michele Flournoy, a defense policy advisor, and former government official.

Flournoy highlighted the potential repercussions of destroying TSMC, stating that such an act would result in a significant economic impact of two trillion dollars within the first year and would bring global manufacturing to a halt.

In response to a query from the media before a Legislative Yuan session on May 8, Chiu Kuo-cheng was asked to share his thoughts on Seth Moulton’s statement, reported Liberty Times.

Chiu expressed that anyone advocating for the bombing of any facility in Taiwan, regardless of whether it serves defensive purposes, would violate defense norms.

Chiu Kuo-cheng reiterated that Taiwan’s armed forces safeguard the nation, its citizens, and its resources, materials, and strategic assets.

He emphasized that the armed forces would not tolerate any attempt to destroy such facilities, whether intentional or not.

Invasion Fears​

Escalating tensions in the Taiwan Strait have sparked concerns about the potential for a Chinese annexation of the island.

The situation intensified further when Beijing conducted large-scale military drills in response to House Speaker Nancy Pelosi’s visit to Taipei in August 2022.

Beijing has made clear its determination to bring democratic Taiwan under its control, even resorting to force if deemed necessary.

The developments have heightened the sense of urgency surrounding the security of Taiwan and its ongoing struggle to maintain its autonomy.

The United States has been increasingly concerned about Beijing’s potential attempts to acquire Taiwan’s vital chip technology.

There have been suggestions by some former US officials to take extreme measures, such as warning China that TSMC facilities would be destroyed if the island was occupied, as a means of deterrence and preventing Beijing from acquiring Taiwan’s crucial chip production plants.

However, Taiwanese officials have been dismissive of such ideas, and currently, there are no plans to consider such tactics.

For instance, Taiwan’s security chief has allayed these concerns by assuring that Taiwan’s semiconductor industry, which serves as a flagship sector, would not be targeted for destruction in the event of a Chinese invasion.

Meanwhile, in response to American concerns, Taiwan has committed to collaborating with the United States and its allies to prevent China’s military from acquiring advanced chip technologies.

Several countries have actively courted Taiwan Semiconductor Manufacturing Co. (TSMC) to expand its operations within their countries. TSMC, in turn, has made significant investments, amounting to billions of dollars, in establishing a chip fabrication plant in Arizona, USA.

According to the US National Security Council, the potential loss of Taiwan Semiconductor Manufacturing Co. (TSMC) in the event of a Chinese invasion of Taiwan is estimated to have a staggering impact on the global economy, exceeding US$1 trillion.

Experts have pointed out that TSMC represents a complete ecosystem that is highly unlikely to be relocated. Even if Beijing were to occupy TSMC, it would be virtually impossible for them to maintain the chip production capabilities of the company.

TSMC is the leading global contract chip maker with advanced technologies crucial for providing consistent chip supplies worldwide. TSMC relies on state-of-the-art facilities to produce these chips.

Chen Ming-tong, secretary general of Taiwan’s National Security Council, highlighted, “If in the event ASML [the Dutch multinational that provides key supplies to the Taiwanese firm] is unable to sell its lithography systems to TSMC, there is nothing TSMC can do.”

Nevertheless, if the Taiwanese chip sector takes a hit, its consequences on the world economy will be devastating.

https://www.eurasiantimes.com/us-threatens-to-blow-up-taiwans-semiconductor-manufacturing/

 

[superpower]

You just contradicted yourself on WW3 and just rehashed the status quo on Taiwan. Nothing much has been added to the discussion. No one in Taiwan has threatened independence yet. It's all a figment of Xi's imagination. I'd check his water supply if I were him. CIA might have spiked the national water supply with paranoia inducing agents.

It's ok, take a deep breath and come back when you're ready.

No one in Taiwan has threatened independence yet? Too much shrimp got to your head, boy?

Heard of William Lai? He's the DPP front runner for Presidential Elections 2024 and he has repeatedly said that he's a "pragmatic worker for independence'. He's more rogue than Tsai Ing Wen and Chen Shui Bian combined

You bet that CCP will be watching this guy closely. And even more closely if he gets elected.

Brush up on your cross-straits affairs, is my advice to you.

 

[hofmann]

No one in Taiwan has threatened independence yet? Too much shrimp got to your head, boy?

Heard of William Lai? He's the DPP front runner for Presidential Elections 2024 and he has repeatedly said that he's a "pragmatic worker for independence'. He's more rogue than Tsai Ing Wen and Chen Shui Bian combined

You bet that CCP will be watching this guy closely. And even more closely if he gets elected.

Brush up on your cross-straits affairs, is my advice to you.

Hahahahaha if you believe that shit ....

Keep on wagging the dog why don't you

Still waiting for you to correct your contradiction on WW3.

 

[superpower]

Still waiting for you to correct your contradiction on WW3.

Contradiction? Can't you read? Or don't you understand English? Oh my God, the cincalok is killing your brain cells, boy.

Let me take you through this slowly:
1. No one in China (the CCP leadership, the military, the people) wants a war with the Taiwanese.
- the Chinese detest fighting their own people on their own land
- a conventional warfare will decimate their economy and put paid to their hope of ever catching up with the US
- the Chinese are rigid and authoritarian but they're not stupid (av. IQ 105) - they've seen how Russia is now bogged down in a never-ending war that's debilitating their own economy and living standards
- a nuclear warfare with the US and its allies (a.k.a. WW3) will result in mutually assured destruction for both China and the US. Hiroshima and Nagasaki is just child's play in comparison. The Chinese may be doctrinaire but they are not suicidal.

2. Line in the sand
- this is where it gets tough for numbskulls like you
- Chinese leaders have repeatedly said that there's a bottomline, dixian, which must not be crossed. And that's Taiwanese declaration of independence
- if Taiwan declares independence, then Point #1 above ceases to apply: there will be war.
- any thing that purports to support an Independence agenda, e.g. arms sales, instigating a pro-Independence leader to prod the populace, establishing de facto independence (high level state visits, military exchanges) will be seen as a provocation -> there will be sabre-rattling, aggressive military exercises in the straits, even sanctions. Which is happening now.

Line in the sand, boy, line in the sand. Grow some hair on your balls and learn something about big power geopolitics.

That the Chinese is making such a brouhaha over an innocuous event like Pelosi's visit tells you something: they don't want war, and they will go to extremes to prevent that by making a mountain out of every molehill step towards independence.

 

[hofmann]

Contradiction? Can't you read? Or don't you understand English? Oh my God, the cincalok is killing your brain cells, boy.

Let me take you through this slowly:
1. No one in China (the CCP leadership, the military, the people) wants a war with the Taiwanese.
- the Chinese detest fighting their own people on their own land
- a conventional warfare will decimate their economy and put paid to their hope of ever catching up with the US
- the Chinese are rigid and authoritarian but they're not stupid (av. IQ 105) - they've seen how Russia is now bogged down in a never-ending war that's debilitating their own economy and living standards
- a nuclear warfare with the US and its allies (a.k.a. WW3) will result in mutually assured destruction for both China and the US. Hiroshima and Nagasaki is just child's play in comparison. The Chinese may be doctrinaire but they are not suicidal.

2. Line in the sand
- this is where it gets tough for numbskulls like you
- Chinese leaders have repeatedly said that there's a bottomline, dixian, which must not be crossed. And that's Taiwanese declaration of independence
- if Taiwan declares independence, then Point #1 above ceases to apply: there will be war.
- any thing that purports to support an Independence agenda, e.g. arms sales, instigating a pro-Independence leader to prod the populace, establishing de facto independence (high level state visits, military exchanges) will be seen as a provocation -> there will be sabre-rattling, aggressive military exercises in the straits, even sanctions. Which is happening now.

Line in the sand, boy, line in the sand. Grow some hair on your balls and learn something about big power geopolitics.

That the Chinese is making such a brouhaha over an innocuous event like Pelosi's visit tells you something: they don't want war, and they will go to extremes to prevent that by making a mountain out of every molehill step towards independence.

Triggered much? Chatgpt could do a better job than you. You must still be butt hurt from the opium wars ya?

Throwing smoke bombs doesn't negate your own contradictions.

China is scared shitless of America. Don't poop in your pants. There will be no M.A.D. because only china will be destroyed.

 

[superpower]

Throwing smoke bombs doesn't negate your own contradictions.

Don't get your knickers in a twist. We know you are not the sharpest tool in the shed, but it's better to keep your mouth shut than to open it and confirm you're the village idiot. (Maybe it's the feng, not the shrimp. My bad.)

I'm still waiting with bated breath, turning almost blue in the face: just show me one contradictory statement that I've made.

Otherwise my exchange with you ends here. Phew!