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  • 2021 has seen tensions over Taiwan at its worst in 40 years.

  • The Chinese government is saying to Taiwan,

  • "Listen, we can hurt you."

  • China is bullying Taiwan all the time.

  • There is no room for compromise.

  • But this is a conflict that goes beyond Taiwan.

  • This is fundamentally a superpower rivalry.

  • A war between the United States and China could escalate over Taiwan.

  • Despite the smiles at a recent summit, uneasiness remains.

  • President Xi had said that

  • the Taiwan issue is like playing with fire.

  • War over Taiwan is possible.

  • We are in big trouble.

  • The Grand Hotel is an iconic landmark in Taipei,

  • famous for its architecture and history.

  • But beneath the hotel lies a secret,

  • hidden for over 50 years, until recently.

  • The Grand Hotel

  • is the only five-star hotel in the whole world

  • that includes two escape tunnels.

  • Look at this light.

  • It is encased in this because if a bomb explosion breaks it,

  • the broken glass would not fly everywhere and hurt anyone.

  • That is the reason why.

  • If you look at the thickness of this wall, it can absorb anything.

  • We were constantly worried that we would be attacked,

  • especially through air attacks from China.

  • Today, we still need shelters in case of natural disasters.

  • So, yes.

  • This place would still be a very handy escape route

  • if it ever comes to that.

  • I hope not, god forbid.

  • Bunkers in Taiwan are not just a relic of the past.

  • Across the island, there are over 100,000 air raid shelters.

  • Yellow stickers in Taiwan indicate underground parking lots

  • where people can take refuge.

  • Air raid drills remain part of life in Taiwan.

  • Air raid sirens go off periodically.

  • Typically, you should stop all activities

  • and look for a nearby protection.

  • This is a good reminder for the people about the possibility of war.

  • And the possibility of war hangs over the island.

  • This year alone,

  • over 700 Chinese military jets entered Taiwan's air buffer zone,

  • almost double the number in 2020.

  • This zone around Taiwan,

  • which is called an air defence identification zone,

  • is actually international airspace.

  • And it's just an area of general security

  • where, if an aircraft enters into,

  • they should identify themselves.

  • A record number of China's aircraft entered Taiwan's air defence zone.

  • The island is on high alert.

  • October was a particularly worrying month.

  • China is bullying Taiwan all the time.

  • However, in October,

  • there were almost 150 military aircraft in four days.

  • It was really, really unusual.

  • In my view,

  • I believe that China is trying to intimidate Taiwan.

  • It was alarming, in terms of the number of aircraft.

  • As one PLA officer had told me,

  • Xi Jinping has called on the Chinese military

  • to train realistically

  • and to be prepared for war if it happens tomorrow.

  • And so, that's what they're doing.

  • They are training around Taiwan

  • in far more realistic ways than ever before.

  • It is a sign of aggression.

  • That is what it's meant to be.

  • The Chinese government is saying to Taiwan,

  • "Listen, we can hurt you."

  • We can hurt you with our bombers and we can hurt you with our fighters.

  • It also signals China's intention to rely more and more on military means

  • to achieve their own goal of national unification.

  • At the heart of the tensions, Taiwan sees itself as a sovereign state.

  • Beijing, on the other hand, sees Taiwan as a breakaway province,

  • one that separated from China in the civil war of 1949.

  • Mao makes his master move.

  • They must surrender.

  • Nationalist forces were defeated by the Communists

  • and forced to flee the mainland for Taiwan.

  • Fleeing nationalists embark to cross the ocean

  • for the island of Taiwan.

  • China sees Taiwan as part of one China

  • and they call that the "One China" principle,

  • and it's very uncompromising.

  • So, that is the inherent tension in the cross-strait relationship.

  • I think this is a very important issue, not only for Taiwan and Asia,

  • but also for the whole world.

  • If there's any conflict in the Taiwan Strait,

  • it will not only be limited to the two parties.

  • The fate of Taiwan will be of immense significance

  • to the fate of Asia.

  • This doesn't mean that China, like Genghis Khan,

  • is going to stampede all over the region.

  • But it does mean that Beijing seeks to arrange a regional order.

  • This is fundamentally a superpower rivalry.

  • It's certainly possible that a war between the United States and China

  • could escalate over Taiwan.

  • If the US does not come to Taiwan's defence,

  • then, the credibility of US alliance commitments,

  • particularly in Asia and also in Europe as well,

  • will really come into question.

  • And the credibility of the US will be greatly diminished

  • in the eyes of all of its partners.

  • This is going to have a huge impact on the region.

  • We're talking about the largest and most impactful war

  • that the world would ever see.

  • But relations between the People's Republic of China

  • and the Republic of China,

  • as Taiwan is also known,

  • haven't always been acrimonious.

  • There have been ebbs and flows, depending on who's in power.

  • Under Ma Ying-jeou, Taiwan's former president,

  • things were cordial.

  • President Ma is the first Taiwan president to meet with a Chinese leader.

  • During that time, there were no Chinese bomber incursions.

  • That was a period of peace, calm and stability

  • that has almost been forgotten.

  • From 2016, things changed.

  • In that year's presidential election,

  • Taiwan voted in Tsai Ing-wen from the Democratic Progressive Party,

  • or DPP.

  • She had positioned herself as a defender of democracy,

  • taking a harder line against China.

  • The '92 consensus was abandoned by Tsai Ing-wen

  • when she came into office.

  • To the Chinese government, this means a step back.

  • The 1992 consensus refers to the results

  • of a semi-official meeting between China and Taiwan,

  • which was then ruled by the Kuomintang, or KMT.

  • Both sides acknowledged the "One China" principle.

  • But what that meant was never clearly defined.

  • The Democratic Progressive Party (DPP)

  • do not accept this because it wasn't negotiated by them.

  • It was negotiated by the opposition.

  • So, it did not surprise me, nor did it surprise Beijing.

  • But the Chinese used that as an excuse

  • to end all official communications with Taiwan.

  • Those lines of communication have remained closed.

  • Without a communication line to resolve things,

  • it could be a chaotic situation.

  • We have witnessed mounting military pressure

  • but no phone calls can be made.

  • Meanwhile, Tsai is now into her second term as president

  • after a landslide victory in January 2020.

  • We are still waiting to build good relations with Beijing.

  • So, our president, President Tsai Ing-wen,

  • said that Taiwan is waiting to talk to Beijing

  • but without any political pre-conditions.

  • As far as building good relations goes,

  • Tsai has certainly strengthened ties with the United States,

  • first under Trump and now with Biden.

  • And she has been spending big on defence deals with the US.

  • The Biden administration has approved

  • the first arm sales to Taiwan.

  • This was a US$750 million deal.

  • The Trump administration proposed

  • over US$17 billion' worth

  • over his four years in the presidency.

  • And they also agreed to sell some weapons to Taiwan

  • that had been previously off the table, like the F-16s.

  • Taiwan itself is trying to increase its own defence spending,

  • with an extra US$8.6 billion towards its defence budget

  • over the next five years.

  • But while the risk of war is serious,

  • and for the people of Taiwan, a constant reality,

  • it's often shrugged off.

  • The fact that people in Taiwan

  • don't take the threat of a Chinese attack seriously enough

  • reduces Taiwan's security and increases its vulnerability.

  • For example, the people of Taiwan probably do not support

  • dramatically increasing the amount of money spent on defence.

  • They want to spend money on other things.

  • But some do see the need to be prepared.

  • This association, for example, conducts classes on survival skills.

  • Welcome to Bilingual News.

  • But it's not just having no experience with war.

  • Amid a generational change, there has been a shift in identity.

  • Because I was born in Taiwan and I grew up in Taiwan,

  • I've never thought of myself as being affiliated with China.

  • They would just say,

  • "Oh, your ancestors came from China. So, you are Chinese."

  • For me, that makes no sense.

  • People in Taiwan have been enjoying democracy, freedom, rule of law

  • and human rights for years.

  • If China does not offer much in that direction,

  • it's very difficult for our people to identify with their system.

  • Public opinion polls in Taiwan show a growing number of people in Taiwan

  • defining themselves as exclusively Taiwanese.

  • I think that Beijing finds that very, very worrisome

  • because it makes them more pessimistic

  • that they can achieve their goal of unification peacefully.

  • In my view, it is in Taiwan's interest

  • to have China retain some sliver of hope that peaceful unification is possible,

  • because if all of that hope evaporates,

  • then, the risk of China using force will grow.

  • So, will China opt for war?

  • And I think the threat will manifest during this decade,

  • in fact, in the next six years.

  • Xi Jinping became China's president in 2013.

  • He has since gone from strength to strength.

  • One could argue that he is the most powerful leader

  • since Mao Zedong.

  • He has consolidated power

  • and is basically in control of all the levels of government,

  • bureaucratic apparatus, including the military, of course.

  • Xi Jinping has really become a penultimate leader.

  • He's really the most powerful leader that China has seen in generations.

  • When it comes to Taiwan,

  • Xi has repeatedly said that it will be reunited with the mainland.

  • President Xi is actually looking forward to the unification very much.

  • No country would be happy

  • if part of the country becomes independent.

  • Spain would not tolerate Catalonia separating from Spain.

  • And the same is true with the US.

  • How could they allow the separation of Hawaii or Alaska from the US?

  • At last month's virtual summit with US President Joe Biden,

  • Xi warned that whoever plays with fire will get burned.

  • It is quite an emotive phrase, "playing with fire".

  • That definitely adds fresh complications to the relationship.

  • He meant that there is no room for compromise.

  • If anyone wants to play with the Taiwan issue

  • by promoting Taiwan's independence,

  • it would be met with China's strong opposition

  • and even military confrontation.

  • So, could Xi Jinping really go to war over Taiwan?

  • I think that the use of force is Xi Jinping's worst option

  • and the one he would least like to use.

  • He has stated this clearly.

  • China would much rather have peaceful unification with Taiwan.

  • The problem is that there's no call within Taiwan to do so.

  • There's no political preference within Taiwan

  • to unify with the mainland.

  • So, I think that Xi Jinping's current objective

  • is very much focused on preventing Taiwan from declaring independence,

  • rather than forcing unification in the near term.

  • I think why it is unlikely that Xi Jinping will use force against Taiwan

  • is that China wants to avoid a major war

  • with the United States.

  • China could lose that war,

  • and losing the war might in fact

  • be to the detriment of Xi Jinping's power

  • and the legitimacy of the Chinese Communist Party.

  • In terms of military balance,

  • I think that China has the power to take over Taiwan, if necessary.

  • However, the use of force is the last resort

  • because using force carries a lot of cost.

  • There is the direct cost of military confrontation.

  • Secondly, a lot of people in Taiwan and on the mainland are going to die,

  • such as the soldiers and the civilians.

  • And also, China would have to face the problem

  • of having to deal with a destroyed Taiwan.

  • Countries could align themselves against China.

  • So, China could face sanctions, boycotts and tech bans.

  • And it could face ever-growing anti-China coalitions

  • in the global system.

  • So, I think for all of those reasons,

  • China is unlikely to use force against Taiwan.

  • But there are also reasons why China might just go to war.

  • We cannot rule out any drastic situations if Taiwan calls for independence.

  • Unfortunately, we have seen Tsai Ing-wen appointing figures of pro-independence

  • in the Taiwanese government and parliament.

  • I think a serious challenge to the status quo

  • would lead to serious consequences.

  • I think the more that Xi Jinping thinks that he can get Taiwan by force

  • at an acceptable cost,

  • the more tempting that prospect becomes for him.

  • I will say from the elite and strategist level,

  • there are many more people in the category that feel like Taiwan is now within reach.

  • And while, of course, there are voices of caution

  • to say that this might be costly

  • in the long term,

  • I think for a lot of individuals

  • within that system,

  • that cost is acceptable, given that the huge benefit

  • would be bringing to an end a now over-70-year-long civil war.

  • I think the threat will manifest during this decade,

  • in fact, in the next six years.

  • Top US admirals have warned

  • that China could invade Taiwan sooner rather than later.

  • I know that Admiral Davidson had said six years.

  • My opinion is that this problem is much closer to us than most think.

  • I think China may see

  • a real potential closing window of opportunity.

  • If you know you can do something that you really care about now,

  • but you know that that's going to go away in some amount of time,

  • you're really incentivised to act now, or soon,

  • before that window closes.

  • People who look at the military balance across the Taiwan Strait

  • argue that Xi Jinping may see a window of opportunity

  • that could perhaps last 5 or 10 years.

  • And then, that window of opportunity might close.

  • And so, he might be tempted to use force.

  • So, China has a will.

  • And now, it increasingly has a way.

  • Look, what really worries me right now is China's military build-up.

  • China has been building up this incredibly formidable military.

  • China's military has seen a rapid expansion under Xi.

  • The PLA's defence budget has grown from around $70 billion in 2010

  • to almost $250 billion today.

  • And there are many things in China's military budget

  • that it doesn't account for that other countries would account for.

  • So, the actual size of China's defence spending

  • is much greater than the official statistics they put out.

  • China has the largest coast guard in the world,

  • and the largest navy.

  • It has the most advanced cruise and ballistic missile programme

  • in the world.

  • It has one of the largest air forces.

  • So, they have the numbers.

  • But also in recent years,

  • their technology has become much more advanced as well.

  • For one, its nuclear capability is growing.

  • The United States says China's build-up of nuclear forces is concerning.

  • US media has reported that China has begun building

  • more than 100 new missile silos in a desert area.

  • It's also working on all kinds of new weapons.

  • Beijing was said to have launched

  • a nuclear-capable hypersonic missile in August,

  • catching US intelligence by surprise.

  • Beijing insists that it was merely a routine spacecraft test.

  • But others disagree,

  • saying these are missiles capable of travelling

  • at more than five times the speed of sound.

  • What's distinctive about hypersonic missiles

  • is that they're very fast and that they can also manoeuvre,

  • which makes it difficult for early warning systems

  • and the missile and air defence systems to intercept them.

  • But I think we should take the Chinese very, very seriously

  • in terms of not only their overall kind of raw power,

  • but also their technological sophistication

  • and their ability to make breakthroughs

  • that could challenge our technological advantage.

  • If Beijing's formidable military build-up is worrying,

  • so is its use of so-called grey-zone tactics.

  • Grey zone is a form of coercion that one state can apply

  • that's below the threshold of conflict.

  • It's designed to put pressure on another country

  • without leading to an actual kinetic conflict.

  • Its main purpose is to try to increase the pressure on the opponent,

  • little by little.

  • As we say it, it's as if it is your garden,

  • but it turns out that the neighbour

  • has been hanging out in the garden all the time.

  • The problem is that the garden is just one step away from your house.

  • Can any country accept that?

  • It makes people fearful.

  • An example of China's grey-zone tactic?

  • The nearly 150 planes flown close to Taiwan

  • in the first four days of October.

  • I believe that they are trying to overwhelm our air force

  • by forcing us to fly excessive hours in response to this air incursion.

  • This really wears down the pilots and their equipment in Taiwan.

  • They're constantly in use.

  • And so, this can reduce the readiness of the Taiwan Air Force,

  • to have to respond to all these types of tactics.

  • Taiwan has to scramble aircraft to monitor what they're doing.

  • Is this an attack or is this not an attack?

  • Another kind of grey-zone tactic is disinformation.

  • Puma Shen knows all about it.

  • When he's not playing basketball

  • or at his day job lecturing at the university,

  • Puma is with his team at Doublethink Lab.

  • This is a Taipei-based NGO that tracks online disinformation

  • and issues warnings against fake news.

  • Fighting disinformation is just like playing basketball

  • or any other sports.

  • You need to stay one step ahead of your opponent.

  • We're facing a lot of disinformation coming from China.

  • The purpose is to discredit our own government.

  • They want to create distrust in our society,

  • to divide our society and create hatred among Taiwanese.

  • For example, in May,

  • we had an outbreak of Covid-19-related Facebook posts.

  • And there were about 480,000 of them.

  • There was a lot of disinformation about many people dying here in Taiwan

  • and that our government wasn't controlling the number of cases.

  • On the left-hand side are all these websites created by China.

  • And on the right-hand side

  • are the Facebook groups or fan pages in Taiwan.

  • For example, this page called "Kanwatch"

  • tried to disseminate all these pro-China messages

  • to multiple Facebook groups or fan pages here in Taiwan.

  • And you can see there is a huge volume coming from left to right,

  • from China to Taiwan.

  • Firstly, using disinformation campaign is kind of crucial

  • if you really want to initiate a military war against Taiwan.

  • It means that you should influence Taiwanese first

  • to make sure that they might surrender at the very beginning,

  • in the first 14 days.

  • And then, secondly, you can have the military war.

  • Coming up next,

  • if it comes to war, will the US defend Taiwan?

  • It's not an absolute commitment.

  • Worries that China might seize Taiwan have been growing in Washington for years.

  • One major concern is that Taiwan may not be able to hold the line

  • if attacked.

  • It's almost laughable.

  • China is this enormous dragon, and Taiwan is maybe a mouse.

  • So, maybe, the mouse is sharpening its nails a little bit.

  • But that's nothing compared to

  • what this enormous dragon is capable of doing.

  • The arms sales to Taiwan are extraordinarily modest

  • as compared to what the PLA itself is doing.

  • These are capabilities, at least notionally,

  • to defend Taiwan from attack.

  • If we still maintain this current kind of military development,

  • we are in big trouble,

  • because the cross-strait disparity will get bigger and bigger.

  • We just cannot use the traditional way to defend ourselves.

  • We must think of other ways

  • to improve innovation and asymmetrical warfare.

  • Then, we can deter China's military from launching this kind of war.

  • If we insist on the large, shiny weapons system,

  • we will never have enough conventional equipment.

  • We will fail.

  • There's also the fact that

  • Taiwan used to have conscription.

  • So, all of the eligible males

  • would have to serve in the military after they graduated from high school.

  • Today, conscription is being phased out.

  • So, right now, after they graduate,

  • the students would only have to serve for four months.

  • It used to be for as long as two years.

  • And they don't learn very much.

  • They don't even necessarily know how to shoot a gun.

  • So, that's a serious problem.

  • 22-year-old Jimmy, who doesn't want his identity revealed,

  • agrees that there's a problem.

  • He recently completed his four-month military training

  • and is a big fan of survival games

  • where players stage mock combats with replica guns.

  • Weapons and training aside,

  • he feels that Taiwan has too many "strawberry soldiers".

  • And that is the big question.

  • If there is war, will the US come to Taiwan's aid?

  • The answer is anyone's guess.

  • The United States of America and the People's Republic of China

  • have agreed to recognise each other.

  • In 1979, the US established formal diplomatic relations with China,

  • while cutting ties with Taiwan.

  • But that same year,

  • the US also passed the Taiwan Relations Act,

  • which guarantees support for the island.

  • The US does have the legal requirement to provide for Taiwan's defence,

  • and to provide them with arms of a defensive character.

  • But the president would have to make the decision

  • about when the US would actually intervene to defend Taiwan,

  • should it be attacked.

  • There's no treaty obligation for the US to do so.

  • It's very ambiguous.

  • That's why people refer to the US policy towards Taiwan,

  • in particular, whether or not the United States would defend Taiwan

  • and under what conditions,

  • as strategic ambiguity.

  • Strategic ambiguity has worked for decades.

  • It allowed the US to manage China on one side

  • and Taiwan on the other.

  • It has preserved the peace since 1979.

  • It is a policy that enables the president to keep flexibility

  • as to what he might do in a crisis.

  • It is also useful

  • because it doesn't give Taiwan a blank cheque.

  • A little bit of ambiguity raises questions in Taipei's mind

  • about having their own self-deterrence capability.

  • It's not an absolute commitment because if the US were to do that,

  • then, Taiwan politicians would have every incentive in the world

  • to not spend on their own defence.

  • But it also ensures that Taiwan doesn't become a hollow military

  • and spend all of its money on social programmes.

  • However, twice in a matter of months,

  • President Biden seemed to abandon strategic ambiguity.

  • In October...

  • He said that the US would come to the aid of Taiwan,

  • and that it would defend Taiwan if needed.

  • President Joe Biden's comment appears to contradict Washington's policy

  • of strategic ambiguity.

  • Beijing reacted, and the White House responded.

  • It's interesting to note how quickly, and I guess, how forcefully,

  • the White House came out to say that there is no change in US policy.

  • The White House had made a similar clarification

  • just two months before that.

  • The US government has been sending mixed messages

  • and sending wrong messages.

  • The so-called slips of tongue, from the Chinese perspective,

  • are probably deliberate.

  • They reflect what they are thinking at the moment.

  • This would increase the tension in the Taiwan Strait

  • rather than alleviate it.

  • We are already in this kind of a chaotic situation

  • with trade war, sanctions

  • and the deteriorating geopolitical situation in the region.

  • There are lots of military exercises, back and forth.

  • This can really deepen the crisis

  • and cause misunderstanding and miscommunication.

  • It's really hard for me to understand exactly what's going on with Biden.

  • A lot of people say that maybe this was a gaffe,

  • or maybe this was a mistake.

  • No, President Biden is very smart on the Taiwan issue.

  • He is one of the original signatories of the Taiwan Relations Act.

  • It's hard for me to believe that these are just missteps.

  • I think it's their attempt

  • to get to be between strategic clarity and strategic ambiguity.

  • Some analysts and strategists in the United States

  • have argued for strategic clarity.

  • The idea is that if the United States makes it clear to the PRC

  • that the United States would defend Taiwan,

  • this would be enough to dissuade China.

  • Tensions have crept up steadily with the Biden administration.

  • I'm honoured to be here today

  • on behalf of the people and government of Taiwan.

  • Taiwan's de facto ambassador to the US

  • was invited to Biden's presidential inauguration.

  • This has never happened

  • since Washington stopped the diplomatic recognition of Taiwan

  • 40 years ago.

  • Then, more recently,

  • the presence of US troops in Taiwan became an issue.

  • We've recently heard that US military officers

  • have been in Taiwan, training some of Taiwanese troops.

  • I would guess that the Chinese know that this takes place periodically.

  • But I think that talking about these things publicly

  • runs the risk of heightening tensions

  • because if they could back Xi Jinping into a corner,

  • he might be reluctant to be seen as soft on the Taiwan issue.

  • He may feel that he has to be tough,

  • and to actually take action against Taiwan.

  • And then, there's this.

  • October 2021 marked 50 years

  • since China became part of the United Nations,

  • with Taiwan forced out of the UN.

  • But the Biden administration has been pushing

  • for somewhat of a change.

  • The United States is not supporting UN membership for Taiwan.

  • It is just supporting greater participation

  • by Taiwan in UN agencies,

  • particularly in the World Health Organisation.

  • China is worried that Taiwan might actually be able

  • to find a pathway to having other countries

  • accept its claim as being an independent, sovereign state

  • that is separate from China.

  • China is very upset and also angry that the US is trying to manipulate this.

  • Now, the US is trying to say

  • that we need to reinterpret the UN resolution.

  • I think it's a serious provocation to China.

  • China sees US provocations elsewhere too.

  • There's AUKUS,

  • a pact between the US, UK and Australia on nuclear-powered submarines.

  • And there's QUAD,

  • an alliance that includes India, Japan, Australia and the Unites States.

  • The alliances themselves do signal again

  • that there's concern about Chinese behaviour.

  • This past June, Japan, Australia and the United States

  • included a sentence in a joint communique

  • that said that peace and stability in the Taiwan Strait should be preserved.

  • So, I think that having countries speak out publicly

  • can have a moderating effect on Chinese behaviour.

  • AUKUS is a different story.

  • Ultimately, it is about a plan to build nuclear-powered submarines

  • that will enable Australia to operate close to China,

  • potentially in the Taiwan Strait,

  • and even play a role if there is a conflict in the future.

  • Now, that may be 20 years or more in the future,

  • but it signals today

  • that Australia is worried about China's use of force against Taiwan,

  • and that it doesn't want to see that happen.

  • I don't see the reason why they formed AUKUS or QUAD

  • to maybe try to aim at China.

  • Of course, I mean China is not afraid, but China has to defend its rights.

  • We really don't want to see something like the Cold War return,

  • and that could lead to confrontations.

  • Chocolates, phones and Hollywood -

  • how Taiwan affects us all.

  • Taiwan is a contentious issue that affects everyone,

  • not just politicians and diplomats.

  • Hollywood stars have had to say sorry for calling Taiwan a country.

  • Global fashion brands have apologised for similar reasons.

  • China, after all, is the world's biggest trading nation.

  • Today, Professor Puma is at a Taipei store that sells Lithuanian chocolate.

  • The shop has become a mini battleground.

  • Lithuania recently permitted Taiwan to open a de facto embassy

  • using the name "Taiwan", and not "Taipei",

  • which is the more accepted norm.

  • Right now, buying Lithuanian chocolates here in Taiwan

  • is a political statement to support Lithuania.

  • China had actually recalled

  • their ambassador from Lithuania.

  • And they also tried to prohibit Lithuania

  • from exporting goods to China

  • and had posed threats to the businesses in Lithuania.

  • Chocolates aside, as far as flashpoints go,

  • a big one could well be the island's prized asset.

  • I think it's not just chocolates,

  • but also a little device that could cause bigger problems.

  • Basically, it's the microchip.

  • Taiwan makes nearly all the world's sophisticated microchips,

  • and many of the simpler ones too.

  • Your cell phones, washers and dryers, video games consoles,

  • everything, even cars or weapons, need chips.

  • Semiconductors are important to weapons or even the warfare itself.

  • China, on the other hand,

  • is dependent on others to meet its chip needs.

  • Years of US sanctions involving microchips have hurt China.

  • China finds itself in a situation

  • very much like how Japan found itself

  • in 1941 at the beginning of World War II

  • in the Pacific.

  • They imported all of their oil,

  • and almost all of it from the United States.

  • Japan was in the corner because of the oil embargo

  • that the US had imposed.

  • And they concluded that they had to solve the problem

  • in a military fashion

  • by taking over the oil fields in Southeast Asia.

  • That situation was really the proximate cause

  • of World War II in the Pacific.

  • Today, China finds itself in a similar corner

  • with respect to a similar critical input, which is the semiconductor

  • that they depend upon for much of their economy

  • and for much of their military.

  • China finds itself in a position of acute strategic vulnerability now.

  • I believe that some people are asking

  • if it is possible that Beijing wants to take over Taiwan

  • so that they can take over the semiconductor industry.

  • I would say, probably not.

  • If they take over the semiconductor industry in Taiwan,

  • the chip industry in Taiwan will not be the same chip industry.

  • They would just ruin the industry.

  • I think there are a lot of reasons why this would be a difficult move.

  • The fabrication facilities in Taiwan

  • are probably the most technologically sophisticated

  • manufacturing operations in the history of the world.

  • They are built on 99.9999999% purity quality metric

  • for just about every input, even water and air.

  • If you add one grain of sand in 12 Olympic-sized swimming pools,

  • that would prevent the system from operating correctly.

  • A military takeover,

  • even if there isn't literally bomb damage,

  • I think there are so many possible ways in which that grain of sand could

  • slip into this system.

  • For everyday Taiwanese, life must go on as usual.

  • The spectre of war may be ever-present,

  • but there will also be the ever-present hope

  • that it will be avoided.

  • We need to understand that to prevent war,

  • we need to talk to our potential attacker.

  • We need to have a dialogue with Beijing.

  • As long as we can maintain the communication line,

  • we have another layer of protection.

  • If the US maintains its attention and commitment

  • to both Taiwan and US allies in the region,

  • then, I think that these are important factors to watch

  • that will delay that outcome considerably.

  • And I think the prospect of war would be diminished.

  • There's an absolutely real possibility

  • that China is going to initiate force across the Taiwan Strait.

  • I don't think it's going to happen tomorrow,

  • but five to seven years

  • should still create a sense of urgency,

  • on the part of all countries in the region,

  • to try to enhance the deterrence against China.

  • We don't have a lot of time.

  • And at the very best, we can just kick the can down the road

  • and delay it a couple more years.

  • That's better than nothing.

  • The Taiwan issue has become sort of an identity problem.

  • People become irrational.

  • When you are not rational,

  • you may do something regardless of the consequences.

  • That's very dangerous.

  • So, that's why I hope that the US government

  • would restrain the independence activities and the activists in Taiwan.

  • China has a responsibility.

  • China needs to be more creative

  • and a little bit more flexible to find some common ground

  • instead of sticking stubbornly

  • to a proposal of "one country, two systems",

  • which was never acceptable

  • to the people of Taiwan,

  • and certainly today, after what has transpired in Hong Kong,

  • will never ever be acceptable to any future generations in Taiwan.

  • If a country can use military force

  • to unilaterally change the status quo,

  • that will challenge the current rule of law

  • for international order.

  • If we do nothing,

  • if countries in the world don't pay attention to the situation,

  • and if people believe that this is a Chinese issue,

  • then, a war could happen.

  • Captions: CaptionCube

2021 has seen tensions over Taiwan at its worst in 40 years.

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