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China sanctions Taiwan after Pelosi visit, but does not give up chips

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Chinese Deputy Foreign Minister Hua Chunying speaks during a press conference at the Ministry of Foreign Affairs in Beijing, China, Aug 3, 2022.
Chinese Deputy Foreign Minister Hua Chunying speaks during a press conference at the Ministry of Foreign Affairs in Beijing, China, Aug 3, 2022.| Photo: EFE/EPA/MARK R. CRISTINO

China blocked Taiwanese citrus fruit and fish imports in retaliation to the visit of Nancy Pelosi, president of the United States House of Representatives, to the island. However, the Asian giant avoided interrupting the import of technology and manufacturing, highlights of Taiwanese production.

The two sides, which split in 1949 after a civil war, have no official ties but multibillion-dollar trade ties, especially in the flow of Taiwanese-made processor chips needed by Chinese factories that assemble smartphones and other electronics.

Bilateral trade rose 26% last year to $328.3 billion. Taiwan, which makes half the world’s processor chips and has technology the mainland can’t match, said sales to Chinese factories rose 24.4% to $104.3 billion. in the current conversion).

“The global economy cannot function without chips made in Taiwan or China,” Carl B. Weinberg of High-Frequency Economics said in a report, as reported by AP News.

Due to Pelosi’s visit, China also made military maneuvers in the region. In response, Taiwan said the neighboring country violates the island’s sovereignty and United Nations rules.

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