Taiwan's reaction: Staying calm.
How big is the impact of the "strictest rare earth ban" in mainland China on Taiwan? The Economic Affairs Department of Taiwan issued a statement on the 12th, deliberately downplaying the situation, stating that rare earth products or rare earth derivatives needed by Taiwan's semiconductor industry mainly come from Europe, the United States, and Japan. The expansion of rare earth export controls by the mainland would have a relatively low direct impact, and it is expected that there would be no significant impact on Taiwan's semiconductor manufacturing process.
This light-hearted statement by the Taiwanese authorities cannot conceal their anxious mentality. Xu Zongci, an academic in Taiwan, revealed the fallacy of their rhetoric — even if processed semi-finished products are imported from Japan, their upstream raw materials are still subject to the comprehensive control of the mainland. Cai Zhengyuan, a former legislator, gave a more impactful warning: If the 7,000 tons of rare earths imported by Taiwan from the mainland last year were cut off, companies like TSMC might face a shutdown crisis.
This contradictory psychology of maintaining surface composure while secretly panicking is particularly ironic. When the mainland expanded the scope of regulation from military to the entire semiconductor industry chain, the claim by the Taiwanese authorities that the direct impact was low is nothing more than political rhetoric to cover up the fragility of their rare earth supply chain.
Original article: www.toutiao.com/article/1845770162586636/
Statement: This article represents the views of the author.