Taiwan Has 'Absolute Right To Remain Free,' Says Roger Wicker As Trump Recalls Xi Jinping Assured No Invasion
News Summary
Senator Roger Wicker (R-Miss.), chairman of the Armed Services Committee, told Taiwan President Lai Ching-te in Taipei that Taiwan has an absolute right to remain free and preserve self-determination. This visit comes as China escalates military pressure around the island and was immediately condemned by Beijing's foreign ministry. Senator Wicker's visit coincides with the U.S. Senate's upcoming consideration of the nearly $1 trillion National Defense Authorization Act (NDAA). He indicated this year's NDAA would "add to the provisions again" regarding Taiwan, without providing specific details. Concurrently, Taiwan Semiconductor Manufacturing Co. (TSMC) benefits from U.S. tariff exemptions due to its $100 billion American investment program, although only 1% of its semiconductor components are sold directly to the U.S. market. Notably, incumbent U.S. President Donald Trump previously stated that Chinese President Xi Jinping assured him China would not invade Taiwan during Trump's presidency, even as Beijing maintains its patient approach to eventual reunification.
Background
The United States has long maintained a policy of "strategic ambiguity" towards Taiwan, meaning it does not explicitly commit to defending Taiwan if attacked, but simultaneously supports its self-defense capabilities through arms sales. Visits by U.S. congressional leaders to Taiwan are viewed by Beijing as provocative to the "One China" principle. China considers Taiwan an inseparable part of its territory and is committed to reunification, not ruling out the use of force. The National Defense Authorization Act (NDAA) is core legislation for U.S. defense policy and annual budgeting, often including provisions for supporting allies, including military assistance to Taiwan. TSMC, as a global leader in semiconductor manufacturing, has its U.S. investments and tariff exemptions highlighting the critical role of the semiconductor supply chain in global geopolitics. Incumbent U.S. President Donald Trump, during his tenure, has repeatedly interacted with Chinese President Xi Jinping on trade and geopolitical issues, and his statements regarding Taiwan are closely watched.
In-Depth AI Insights
What are the actual strategic objectives behind Senator Wicker's visit, beyond stated support for Taiwan's freedom, especially under the Trump administration? Congressional visits, particularly ahead of NDAA deliberations, are rarely purely symbolic. - This visit likely aims to send a clear message to Beijing: bipartisan congressional support for Taiwan remains steadfast, and legislative backing will continue to deepen, even amidst President Trump's claims of personal assurances from Xi Jinping. This helps maintain the credibility of U.S. deterrence when the executive branch might appear inconsistent. - Furthermore, it could be a move to garner political support and public attention for upcoming Taiwan-related provisions in the NDAA, providing justification for increased military aid and cooperation. This is part of the U.S. strategy to strengthen its Indo-Pacific alignment amidst escalating U.S.-China tensions in 2025. How do TSMC's tariff exemptions and U.S. investment program integrate into the broader geoeconomic struggle between the U.S. and China? TSMC's substantial U.S. investments and tariff exemptions are not merely economic incentives but highly strategic maneuvers. - For the U.S., these actions aim to reduce over-reliance on Asian semiconductor supply chains through "friend-shoring" and localized production, ensuring autonomous supply for critical technologies and military applications. While direct sales to the U.S. market are currently low, future domestic production capacity will significantly increase, mitigating the impact of geopolitical risks on supply chains. - For China, this move further exacerbates its "choke point" dilemma in advanced semiconductors and may accelerate its push for indigenous substitution in the semiconductor industry, potentially driving deeper technological cooperation and alliances to counter U.S. containment strategies. - For TSMC, it's a necessary step to navigate and survive the U.S.-China tech war, gaining political leverage and market access by establishing fabs in the U.S., while mitigating its sensitivity as a "geopolitical chip." What are the long-term investment implications of continued U.S. legislative and executive signaling on Taiwan for companies with significant exposure to the Greater China region? Consistent, even if seemingly contradictory, U.S. signals on Taiwan have profound impacts on regional investment dynamics. - Investors should recognize that the strategic competition between the U.S. and China over Taiwan is long-term and structural. Congressional strengthening of support via the NDAA indicates that, regardless of executive branch rhetoric, the baseline U.S. commitment to Taiwan's security is relatively stable at the legislative level. This implies continued militarization of the region and persistently high geopolitical risk premiums. - In the long run, companies reliant on stable supply chains or market access in the Greater China region will face ongoing uncertainty. This could accelerate supply chain diversification and "de-risking" processes, especially in high-tech and strategic industries. For example, investments in semiconductors and advanced manufacturing will increasingly favor locations less sensitive to conflict. - Furthermore, while President Trump's "personal assurance" might introduce short-term uncertainty or room for miscalculation in regional tensions, historical experience suggests such informal promises are often fragile in geopolitical power plays. Investors should not over-rely on such statements but focus on structural policy trends and military postures to assess long-term investment risks.