US-China Rivalry Enters 'Deep Water,' Taiwanese Businesses Face Danger, Warns Hsieh Chin-ho

Financial commentator Hsieh Chin-ho has cautioned that the escalating rivalry between the United States and China is entering a more perilous phase, characterized by increasingly broad U.S. sanctions and China's tightening border controls. This dynamic significantly heightens the risks for individuals traveling to and from China.

Hsieh cited recent events that signal subtle but significant shifts in the U.S.-China relationship. He pointed to bipartisan criticism of communism in the U.S. and expanded American sanctions, including restrictions on Chinese optical communication components, which have impacted stock prices. Furthermore, U.S. initiatives like limiting Chinese investment in SpaceX's IPO and restricting Chinese-made components in low-Earth orbit satellites underscore the growing technological decoupling.

“

Water flows wet, fire dries. The undercurrents under the US-China rivalry!

The crackdown on semiconductor and server technology is also intensifying. Hsieh highlighted recent indictments and arrests involving executives from companies like Super Micro Computer, Nvidia, TSMC, and Hwacom Systems, suggesting that previously covert transactions are now being exposed, possibly at the behest of U.S. authorities requesting Taiwanese investigations. This marks the disappearance of previously existing gray areas in these dealings.

“

The US-China rivalry has entered deeper waters this year.

Simultaneously, China's new exit and entry regulations have amplified risks for those traveling to the mainland. Hsieh referenced a report of a family with Japanese citizenship being detained upon returning to China, illustrating the potential dangers for Chinese nationals who have acquired foreign passports. He also noted China's move to impose a 20% income tax on insurance payouts for Hong Kong policies, leading to significant stock drops for companies like Prudential and AIA, indicating Beijing's efforts to secure revenue amid fiscal pressures.

"The U.S.-China rivalry has entered deeper waters this year," Hsieh stated, referencing China's export bans on drones and rare earth elements to the U.S. and stricter controls on high-level talent entering the U.S. He predicts intensifying competition in artificial intelligence. Wall Street investment banks are also actively withdrawing capital from China, leading to a strategy of "scorched earth" on both sides. This complex geopolitical landscape, Hsieh warned, makes the position of Taiwanese businesses accustomed to hedging their bets increasingly dangerous and difficult.

“

This also makes the situation of Taiwanese businessmen accustomed to 'straddling two boats' dangerous and difficult!