Analysis: Taiwan Reverses Chip Export Restrictions on South Africa
Taiwan has reversed a move to restrict chip exports to South Africa amid diplomatic friction over Taiwan's representative offices in the country. Taiwan's former ambassador to South Africa's neighbor Swaziland (now called Eswatini) Leonard Chao provides a look at what happened and what it means.
**Taiwan’s Chip Export Policy and Its Diplomatic Implications for Southern Africa**
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REPORTER:
As someone who knows the southern African region intimately, what do you make of Taiwan’s decision to go back on its earlier announcement that it was going to put export controls on chips headed for South Africa?
Leonard Chao
FMR. TAIWAN AMB. TO SWAZILAND:
Well, this is a very, it's an insulting move to downgrade our two offices in South Africa, including the main office in Pretoria, are not only renamed unilaterally, renaming them and also forcing the office, the main office to relocate from Pretoria to Johannesburg unilaterally. So I think we were forced, as the saying goes, we've been backed into the corner. I think we came up with this unfortunate move. And now that I was told that the South African government has agreed, has agreed finally to talk with us. So that's why for this time around, said okay, fine. If you'd like to talk, then let's talk.
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REPORTER:
Do you see Taiwan using chips and other tech export controls in the future as a diplomatic bargaining tool?
Leonard Chao
FMR. TAIWAN AMB. TO SWAZILAND:
Well, I don't rule out the possibility. After all, the TSMC of Taiwan has become a household name around the world. And we are the major supplier and producer of the most sophisticated chips today. So, that becomes a wonderful and valuable resource of Taiwan's government. So, we hate to, I like to emphasize, John, that we hate to impose any restrictions on the export control of chips to any countries around the world. But unless and until certain countries give us a reason to.
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REPORTER:
If Taiwan were to go ahead and use chips as a bargaining tool in diplomacy, can you see any downsides? For instance, would it increase countries like South Africa's dependence on Chinese competitors?
Leonard Chao
FMR. TAIWAN AMB. TO SWAZILAND:
Any international move, either politically or economically, definitely has some pros and cons. There might be some downsides, but I think we were forced to try. Whether it's working, we don't know yet, but we hate to do that. I repeat, we hate to do that unless we were given a reason to.
