The real-world consequences of US-China "Great Power" thinking

As usual, China-Taiwan commentators not from or based in Taiwan sound like sad old hamburger waiters prattling on about sauces.

It's not often that I write a whole post based on one fantastically stupid tweet, but here we are on this warm Sunday morning. 

Supporters of Taiwan have been more vocal in recent years, pushing back on the trope that conflict "over Taiwan" would fundamentally be a US-China issue, that the entire war scenario would be the outcome of a rivalry between these two nations. 

This is obviously wrong: Taiwan isn't some piece of land being fought over, it's a country full of people who have their own lives, thoughts, beliefs and desires. Those beliefs and desires are central to the issue, not some side discussion.

At its core, this is the China-Taiwan conflict: China insists on annexing Taiwan, but Taiwan will never accept being part of China. China will accept no other resolution. Taiwan will never cede itself, will never choose peaceful unification. They know what life is like under CCP rule; regardless, most Taiwanese don't think of themselves as Chinese, aren't governed by China and don't want to be part of China. There's no alternative, no compromise. How can there be, given the total lack of respect China has for both agreements and democracy? 

This is the heart of it: not the US, not some "Great Game", not a rivalry between two countries or two military buildups. And no, the desire of the Taiwanese people to continue to govern themselves is not some US psyops campaign. It's organic and began in Taiwan.

China wants Taiwan but Taiwan does not want to be part of China. That's it. Taiwan is right and China is wrong, because all Taiwan wants is to govern itself in peace, whereas China is a brutal dictatorship willing to start a war. China's demands are top-down: they come from the CCP. In Taiwan, the people don't want to be part of China. It's not the same, it's not US-driven, and this matters.

There is one peaceful resolution, then: China must be deterred.

Enter the stupid tweet: 

Striking that some think talking about destroying TSMC in a Taiwan war is too hot.

US bases and territory - and possibly the homeland - would very likely be under direct attack.

Nuclear weapons would be on the table. China gets it. That’s why it’s in nuclear breakout. 1/

— Elbridge Colby (@ElbridgeColby) May 6, 2023

This is what happens when you do, in fact, lose sight of the fundamentals of this conflict and think of everything in terms of the US, or the US vs. China. That every outcome is a result of something the US or China does, and not the will of Taiwan or simply what happens in wartime.

The basic assumption here is that in the event of China invading Taiwan that someone might actively blow up TSMC, wreaking havoc on global chip supply and multiple technology sectors.

China probably wouldn't do this, as they want that sweet, sweet tech. But the US probably wouldn't either, as TSMC's chips are central to the global economy. I don't think Taiwanese military forces would do this, because the country wants to be able to recover post-war. Besides, it would not be necessary.

TSMC has said rather openly that their own fabs would be "inoperable" if China invaded Taiwan. Here's the full quote: 

"Nobody can control TSMC by force. If you take a military force or invasion, you will render TSMC factories non-operable.  Because this is a sophisticated manufacturing facility, it depends on the real-time connection with the outside world. With Europe, with Japan, with the US. From materials to chemicals to spare parts to engineering software diagnosis. It's everybody's effort to make this factory operable. So if you take it over by force, it can no longer be operable."

They themselves have also said that chips are not as important as, well, democracy:

"Had there been a war in Taiwan, probably the chip is not the most important thing we should worry about. Because [after this invasion] is the destruction of the world rule-based order, the geopolitical landscape would totally change."

This is not something one side would do intentionally to harm the other, not a strategy US would employ to fight China -- it is simply what would happen if war broke out. It is not related to attacks "on the homeland" or "US bases". 

This has real-world consequences. Once we start talking about TSMC's destruction as though it's something the US would do, people freak out at the "hot war" scenarios of the US, perhaps even call it provocative or unnecessarily aggressive. Support for standing with Taiwan erodes, perhaps this is felt in the electoral realm and we choose governments that will abandon Taiwan to China, all because we think our own involvement would involve "destroying" TSMC, when that was never, and could never be, on the table.

I thought for awhile about whether TSMC would wreck itself in the advent of war. Perhaps, but I don't think so: they wouldn't have to. The operation TSMC runs is so sophisticated, so high-tech, that it would survive neither physical threats -- bombs, fires -- nor a disruption in global supply chain logistics.

Liu says it himself: this isn't a simple factory we're talking about. It's not something anyone could build. If anyone in China had the ability to do what TSMC does, they would already be doing it. That's true for anyone in the world: if they could, they would, and they're not because they can't.

A lot of commentators underestimate or misunderstand the level of sophistication at the design, machine and systems level required to make chips this advanced. They seem to think it's just mechanical arms stamping out chips. That a clean room is just really well-swept. That employees lose days of sleep to handle the tiniest issues because Asians are just extremely hardworking, not because the "tiniest issue" could cost millions of dollars (TSMC managers want a good night's sleep just like everyone else; they're not excited by those 2am calls). 

Thus they don't understand that those machines require constant, careful maintenance, constant supplies of all sorts of weird chemicals and elements not only in the chips themselves but for the etching process. In a war, the gas wouldn't make it to Taiwan, let alone the fabs, and the workers wouldn't either. It would be days, if not hours, before the whole thing went -- for lack of a more accurate term -- tits up. 

Nobody needs to "destroy" or bomb anything. It would just be. It would be an inevitable by-product of war. 

This is what Mark Liu was trying to tell us, and this is what we clearly didn't hear in our haze of "US vs. China, big rivalry, oh no!" 

Mark Liu's words are carefully chosen -- retired founder Morris Chang would not have made him his successor if they weren't -- and there's really no room for discussion on things like "People in Taiwan have earned their democratic system and they want to choose their way of life", that China will "think twice" on the consumer market chip supply disruption they themselves would experience, and an invasion would be "lose-lose-lose".

It matters that this is coming from the head of a company that is neither 'blue' nor 'green'. TSMC stays out of domestic politics in that way, unlike, say, Foxconn's founder Terry Gou. I don't know which way either Morris Chang or Mark Liu lean, and I'm not sure it matters. Both the KMT and DPP have tried to tap Chang for public roles -- or at least it's speculated that they have -- and the company has donated to both parties (as of 2009, they donated somewhat more to the KMT but I don't know what the numbers are now). 

However, it does matter that the consistent message from TSMC is that they want to do business, and war is bad for business (if you're, say, a communist who hates business, fine, but you're probably posting about it on social media using a device that uses a TSMC chip.) 

It also matters that their bottom line on Taiwan differs from Terry "sell it all to China for cash" Gou: Chang has said Taiwan should be a part of the developed world's "friendshoring" -- that is, countries that aren't China -- and Liu is quite clear that Taiwan is Taiwan, and they absolutely do not work with the Chinese military (unlike Foxconn, of which I'm deeply suspicious). This is not a company that will throw its hands up and hand its tech over to China.

If China insists on annexing Taiwan, that means war as is no possibility of Taiwan peacefully accepting subjugation that they do not want. Regardless of US actions, that would render TSMC inoperable. Thus, there is truly only one solution that avoids a global tech sector catastrophe: China must be deterred. 

Taiwan could get what it wants peacefully, if China could indeed be deterred. All it wants is what it already has: sovereignty from the PRC, self-governance. A continuation, and perhaps a recognition of the facts as they currently sit. 

This is not a warning to the US to "not provoke China", as some have taken it. The problem (for once) is not the US, it's that China wants something it cannot have. It's a warning to China, not from the US but from the biggest player in the Taiwanese private sector, to leave Taiwan alone for their own good as much as anyone else's. 

The US isn't going to destroy TSMC because that would happen anyway, as a result of Chinese actions. We must not base our opinions on how to support Taiwan on fairy tales and fabrications.

China is raising tensions all by itself, threatening war all on its own. It would be doing that without the US around, because the core of the conflict sits in Asia. They're not responding to the US, they're mad that Taiwan isn't interested in being ruled by them, and Taiwan is not wrong to want to remain independent.

This is not a discussion of whether the US should or should not bomb TSMC if China invades, because that's stupid. Don't be stupid. 

If China invades, TSMC won't need to be bombed by anyone, because it won't survive the war. The chairman has said that obliquely. There's no hidden meaning, no chiaroscuro of possible outcomes. If China starts a war, this will happen. If that will impact the global economy -- and it will -- then China must be deterred.