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China on Sand Export: China is stunned after the visit of US House Speaker Nancy Pelosi in Taiwan. Military exercises are being conducted one after the other. It has also announced restrictions against Taiwan. China’s list of restrictions includes food products like fruits, fish as well as sand. That is, the Ministry of Commerce of China has announced that it will not export sand to Taiwan. Taiwan, surrounded by the sea all around, has a lot of sand, but still it imports a lot of sand and China also has a stake in it.
In fact, Taiwan, the world’s largest semiconductor producer, extracts silica from sand and uses it to produce silicon. That is, sand is the raw material for this highest earning industry of Taiwan.
How will the sand ban affect Taiwan?
Taiwan’s mining ministry claims that China’s sand ban will have no effect as China’s share in its imports is less than 1 percent. At the same time, China says its export ban will have an impact on Taiwan’s semiconductor business, which consumes 90 million tonnes of sand annually, as a third of Taiwan’s sand imports come from China alone. However, claims should be made from both sides, but where Taiwan has been importing sand from China, China is also a big importer of Taiwanese semiconductors.
Semiconductor business will continue
This is the reason why China may have banned Kui-Kui chips imported from Taiwan, but has excluded the import of Taiwan Self Semiconductor Chips. That is, despite all the tension, the semiconductor business between the two countries will continue as before. The reason for this is understandable. China, which is called the factory of the world, needs semiconductor chips to manufacture all electronic components. Statistics show that not only Taiwan, but only 10 percent of the total revenue of TSMC, the world’s largest semiconductor chip maker, comes from China. Its biggest buyer is America.
How much does China need Taiwanese chips?
In other words, China needs more Taiwanese chips to run the engines of its production. Scott Hua, an expert at Taiwan’s Xinhua Semiconductor Park, says that if Taiwan stops providing semiconductors, then China’s wheels may stop. China needs semiconductor chips for everything from its vehicles, machines to planes. Not only China, almost every country in the world needs a semiconductor chip because it is needed for every electronic item, from fighter aircraft to missiles and from the latest iPhones to new satellites. This is also the strength of Taiwan.
How much is the business of China and Taiwan?
America would never want that the chip being used in the sensor of its B-52 fighter planes has to be taken from China. Expert Scott Hua says that the need for semiconductor chips has also increased the tension for Taiwan. However, even after 70 years in the political tension of history between China and Taiwan, this matter is not resolved. The graph of mutual trade between China and Taiwan has been more or less unaffected by this. The total business between the two is more than $ 122 billion. Along with this, the process of movement continues even in the midst of fears of war.
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