International News: Taiwanese Tech billionaire urges Taiwan to ‘prepare for the worst’

By Horace Palacio: In a recent interview with the Sydney Morning Herald, Taiwanese semiconductor tycoon Robert Tsao issued a stern warning about the necessity for Taiwan to bolster its defenses in the face of potential threats from China. This comes in the wake of the Democratic Progressive Party’s (DPP) triumph in the latest elections, marking their third consecutive victory.

Despite Beijing’s relatively muted reaction to the election results, the diplomatic landscape shifted significantly when Nauru, one of the few countries recognizing Taiwan, cut diplomatic ties, declaring Taiwan an “inalienable part of China’s territory.”

Tsao anticipates an escalation in pressure from Beijing following the DPP’s win. He emphasizes the importance of Taiwan preparing both its military and civilian defenses to uphold the island’s sovereignty. Drawing parallels to unexpected violent actions elsewhere in the world, Tsao highlights the need for readiness. “If they get crazy, then we have to be prepared,” he asserts.

A prominent figure in Taiwan’s tech industry, Tsao founded United Microelectronics Corporation (UMC) in 1980. Recently, he has invested $100 million in training Taiwanese “civilian warriors” for war, including first aid and protection against airstrikes, to bolster their resilience against potential threats.

Tsao’s stance on Beijing has been a source of contention in Taiwan, especially with the opposition Kuomintang (KMT) party, which advocates for closer economic ties with China. The KMT’s recent electoral defeat, garnering 4.67 million votes compared to the DPP’s 5.58 million, reinforces Tsao’s view that Taiwan is resilient against China’s influence.

The DPP’s Lai Ching-te, set to take office in May, follows President Tsai Ing-wen’s lead in resisting Beijing’s economic and diplomatic coercion. None of the major parties in this year’s election endorsed unification with the mainland, reflecting the stance of less than 10% of the Taiwanese populace.

China, under Xi Jinping, has never ruled Taiwan but claims it as its territory. Taiwan, governed by the KMT since 1949, has seen increased military activity from China, with naval vessels and warplanes frequently approaching the island.

Amidst this backdrop, Taiwan maintains a delicate balance between asserting self-governance and avoiding formal international independence, a status quo supported by global powers. Tsao, however, advocates for complete independence to eliminate threats from Beijing, citing the global trend of increasing sovereign states since World War Two.

Tsao believes the United States and its allies would back Taiwanese independence, given the strategic importance of the Taiwan Strait in global trade and the island’s critical role in the semiconductor industry. However, US President Joe Biden recently reiterated Washington’s stance against Taiwanese independence, seeking to moderate Beijing’s response and maintain the status quo.

The recent visit of an unofficial US delegation to Taiwan, including former national security advisor Stephen Hadley, underscores the international challenge of engaging with Taiwan without formal diplomatic ties. China criticized the visit, seeing it as an encouragement to Taiwanese separatists.

Nauru’s severance of ties with Taiwan, leaving it with just a dozen official diplomatic partners including Belize, marks a significant diplomatic loss. China has steadily eroded Taiwan’s international relations through economic incentives.

 

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