The agreement will "drive a massive reshoring of America's semiconductor sector," the US Commerce Department said. In an interview to news channel CNBC, US Commerce Secretary Howard Lutnick said the objective was to bring 40% of Taiwan's entire chip supply chain and production to the United States. Had Taipei not agreed to manufacture in the US, the tariffs would likely be 100%, Lutnick added.
China has warned it will crush any foreign attempts to interfere on behalf of Taiwan, after Japan announced plans to deploy missiles near the democratically-governed island. We have a firm will, strong determination and a strong ability to defend our national sovereignty and territorial integrity, Peng Qingen, a spokesperson for China's Taiwan Affairs Office, told a news conference on Wednesday.
In recent weeks China has released a series of statements, articles and photos, that analysts say signal an escalation in the ruling Chinese Communist Party's approach to Taiwan. Beijing claims Taiwan as a province and has vowed to annex it under what it terms reunification. China's military is not believed to be capable of a full invasion yet, but senior officials have recently started using sharper language.
