China seeks to control Taiwan with the goal of consolidating its influence in the South China Sea and increasing its naval power to become a maritime superpower. Since 1949, when the Kuomintang nationalists took refuge on the island after losing to the communists, Taiwan has functioned as an autonomous state, although Beijing considers it part of its territory.
For decades, Taiwan has stood out as one of the world's leading producers of footwear and textiles. Its rapid economic growth in the 1960s and 1970s was called the "Taiwan Miracle." After the Chinese civil war, Taiwan implemented policies that fostered economic growth, such as industrialization and land reforms. These measures allowed Taiwan to become a significant exporter of agricultural products.
In total, Taiwan's suppliers account for nearly 36% of the total material bill for each iPhone, highlighting its central role in global supply chains. Despite the pandemic in 2020, Taiwan's economy grew by 3.5%. Over the years, Taiwan strengthened its trade relations with China, becoming a relevant supplier of electronic components, although tensions between the two nations persist.
Taiwan's strategic geographical location places it at the epicenter of maritime trade routes and at the center of global supply chains, making it vital for the global industry. The island has positioned itself as a global leader in semiconductor chip production, essential for current technology. Tensions between Taiwan, China, and the United States have intensified, despite maintaining a critical interdependence among the three players.
The conflict between Taiwan and China has escalated in recent months with multiple incursions of Chinese military aircraft into Taiwan's Air Defense Identification Zone. Despite China's pressure, Taiwan has no representation in the United Nations, and Beijing's promise to reclaim the island by force if necessary increases tensions in the region. With a prominent technology industry and a steadily growing economy, Taiwan finds itself in a crucial position on the current global stage.
