Tensions in Taiwan

Context:

Beijing will “not hesitate to start a war” if Taiwan declares independence, China’s Defence Minister warned his U.S. counterpart on Friday, the latest salvo between the superpowers over the island.
This incident comes during the time when recently, The President of USA in his recent visit to Japan stated that Washington would defend Taiwan militarily if it is attacked by China.

After the World War II, there was conflicts between the Communist Party and the Nationalist Party(Kuomintang) in mainland China.
After the communist party dominated over them under the leadership of Mao Zedong, the Nationalist party fled to Taiwan.
China has been consistently exerting immense diplomatic pressure on the countries not to recognise Taiwan as a state.
Until now US is following a policy of strategic ambiguity and also Diplomatically, the US currently sticks to the “One-China” policy, which recognises only one Chinese government – in Beijing – and has formal ties with China rather than Taiwan.

As we know there is acute shortage of Semi-Conductor all over the world, Taiwan is one of the biggest producers of Semi Conductor.
Taiwan Semiconductor Manufacturing Company or TSMC – has over half of the world’s market.
So Chinese takeover of Taiwan would give China control over the foundry in Taiwan.

From the past decades, The China factor has played a huge role in the ties between India and Taiwan.
India’s complicated relationship with China also played a role in preventing Delhi and Taipei from intensifying their relationship
But the recent assertiveness of China has compelled many countries including China to improve their ties with China.
Taiwan with a huge base of manufacturing units could collaborate with India with huge demographic potential.

Source The Hindu