Donald Trump is facing accusations of charging one of the world’s biggest tech companies a $100 billion “protection fee.” During his White House address earlier this month, Trump surprisingly revealed the billion-dollar deal, seeming pretty excited about it. However, the deal is now surrounded by controversies as the former president of Taiwan accused him of charging the fee. If you are someone who wants to know more about the allegation, this article is for you. It brings you everything you need to know about the tech giant paying Trump a $100 billion fee. The following article also includes the statement of the former Taiwanese president.
Tech Giant Pays Trump $100B Fee: What Trump Said About The Deal In His Address?
Trump in a White House address earlier this month happily announced the $100 billion investment from Taiwan Semiconductor Manufacturing Company. He also added that the investment will bring thousands of job opportunities for American citizens especially in Arizona. C.C. Wei, who is the chief executive of TSMC, also accompanied him in the official address. According to Trump’s announcement, the company will build 5 cutting-edge fabrication facilities in the US. TSMC is one of the biggest chip manufacturing companies supplying its products to companies like Apple.
What The Taiwanese Former President Said About The Investment?
Ma Ying-jeou who is the former president of Taiwan in an official statement accused Trump of charging the tech giant $100 billion in exchange for “protection.” He accused the ruling Democratic Progressive Party of selling off TSMC to Trump. He also called this deal a major national security crisis. According to him, this deal between TSMC and Trump will have a major negative impact on the confidence of the Chinese people. Ma also believes this will impact the future geopolitical position of Taiwan.
Why Ma Thinks This Deal Is A Threat?
The former Taiwan president has also accused the current ruling party of bowing down to US requests for investment. He added that the ruling party hopes to have US protection as the country continues to battle for independence externally as well as internally. He also cited Ukraine’s current situation after three years of war with Russia. Ma mentioned the rumors about Trump withdrawing support from Ukraine as well. He expressed his legitimate concerns about Taiwan becoming another Ukraine tomorrow.
Trump’s Previous Statements About Taiwan
The Community Party of China claimed Taiwan as part of its territory long ago. It also vowed to take control of the island. Beijing has also reportedly increased military activities in waters near Taiwan. The island country has heavily relied on military and political support from the US to protect its sovereignty. However, Trump’s previous statements suggest it might not receive the support it needs. He alleged Taiwan of stealing the semiconductor industry. Trump also called on the country to “pay” for the protection it receives from the US.
Complicated Situation with Taiwan
The situation with Taiwan is also tense. China claims Taiwan as part of its territory. Thus, it has threatened to take control of the island. Also, Taiwan relies heavily on military and political support from the U.S. This is to stay independent. However, if the deal between Trump and TSMC is real, it could worsen the situation further in the region. This is also true if it involved demanding a large payment for protection. Moreover, other nations may witness this as an example of how power and finances influence Taiwan’s future.
The former president of Taiwan is also concerned about the predicament. He believes that their government is too eager to receive help from the U.S. Moreover, he believes they are risking their long-fought independence by relying too much on foreign help. Also, he compares this situation to Ukraine’s. They have been at war with Russia for a long time. Thus, he is worried that Taiwan could end up in a similar situation. Along with this, he fears Trump’s actions could damage Taiwan’s confidence. Several citizens in Taiwan wish to stay independent. However, if their country is being “sold” or controlled by foreign powers, they might lose their autonomy.
This is in light of the U.S. statement that they have traditionally supported Taiwan. However, Trump has made some statements that indicate uncertainty about this support. His accusation about Taiwan stealing the semiconductor industry indicated that the country should pay for the protection in return.
These claims seem to be more of a negotiation than an offer for help or support. They suggest that Trump may not be as committed to offering support to Taiwan as it seems. It is because of the “protection fee” that he demands. It could imply uncertainty in his intentions. Thus, several people believe this could mean lesser support from the U.S. Thus, it is a precarious situation for Taiwan with regards to China’s claim.
Conclusion
TSMC is one of the biggest chip makers across the globe. Its decision impacts global markets as well. Hence, this deal could prove precarious for Taiwan. Moreover, companies may feel that they are asked to pay extra for protection. This could lead to a less fair and more dangerous global economy. Under this, power politics take precedence over business.
Some analysts believe that if Trump did not ask for the fee, it would imply that he is establishing his position at the global level. However, others believe it was a way to coerce Taiwan to follow U.S. norms when it came to international trade.
Also, the accusations against Trump have led to several doubts in the global market. The situation is escalated because of the “protection fee” that is demanded. Thus, this situation shows how complex global relations are today. Countries such as Taiwan are caught in the crossfire between bigger players such as China and the U.S. Moreover, their future depends on how their present leaders navigate the issue. Their citizens and business owners will also be observing on how the leaders provide a solution to the predicament.
