Illustration: Chen Xia/Global Times

Taiwan's economy is likely to grow more slowly than previously forecasted this year and next, after the island slipped into a recession in the first quarter. With it as a backdrop, the Democratic Progressive Party (DPP) authorities still see the island's semiconductor sector as a bargaining chip for political gains. Their selfish political manipulation will only bring more pain to Taiwan's economy.

Joseph Wu, the head of Taiwan's external affairs authority, said during a visit to Europe last week that European countries should strengthen relations with Taiwan if they want continued investment from the island in semiconductor production, Reuters reported. Overseas investments by Taiwan Semiconductor Manufacturing Corp (TSMC), require government approval, the report said.

TSMC's investment into Europe may be forced to retreat by the DPP authorities. It is easy to make one think of TSMC's investment in the US state of Arizona. The construction of an Arizona plant by TSMC has been subject to controversy in the island of Taiwan, with some local analysts warning TSMC is turning into "USSMC." Taiwan's semiconductor wealth has been squandered by the DPP authorities as proof of allegiance to win Washington's trust, but it is still not enough. Now, the DPP authorities try to use TSMC as a political tool to place pressure on Europe, although politicizing chip production is a dangerous game for the island's semiconductor industry.

The DPP authorities, driven by their selfish separatist agenda, have shown no hesitancy in betraying Taiwan businesses' interests and selling out Taiwan's semiconductor industry. By offering TSMC to Europe on a plate, the DPP hopes to gain tips from European countries by "strengthening relations" with them. However, if Taiwan's semiconductor sector is hollowed out, there is no doubt that the Taiwan economy will suffer a severe blow.

Taiwan's economy saw a year-over-year contraction of 3.02 percent in the first quarter of 2023 amid falling global demand for exports from the island. The island's first-quarter exports dropped 19.2 percent from a year earlier in US dollar terms. Amid recession, Taiwan has revised down its 2023 economic growth forecast as weak exports continue to drag on the economy.

At present, the DPP authorities' top priority should be to stabilize the economy and exports, but, regrettably, things go on the contrary direction, as the DPP authorities sell Taiwan's economy away.

The DPP authorities are playing a dangerous game, during which they will not hesitate to hijack Taiwan's semiconductor manufacturing sector as cannon fodder for their own political interests. However, it should be pointed out that the DPP authorities may have overestimated the advantages of Taiwan's semiconductor sector.

As global competitors invest big to attract advanced semiconductor manufacturing to their shores, it is undeniable that Europe has interests in TSMC's semiconductor investment. However, using TSMC as a card is not yet capable of kidnapping Europe. It is absurd for the DPP to overestimate Taiwan's semiconductor investment and try to use it as a bargaining chip to advance its secessionist goals.

The Chinese mainland is currently the world's largest semiconductor market in terms of consumption. Even if Europe becomes an investment destination for Taiwan's semiconductor manufacturers, the mainland will still be an important market for those made-in-Europe chips. Taiwan is an inseparable part of China's territory. China will never allow anyone to separate Taiwan from the motherland by any means, including using Taiwan's semiconductor sector as leverage to advance secessionist goals.

Chinese Foreign Ministry spokesperson Wang Wenbin said on June 9 that China is urging the EU to understand the real nature of the Taiwan question and follow through on the commitment it has made to China on the one-China principle. "Do not support the Taiwan independence forces or have any official exchanges in any name with the Taiwan region," Wang said.

In recent years, China-Europe economic relations have shown resilience. The DPP's attempts to use semiconductor sector as political capital to solicit foreign support are bound to fail, and such moves will only endanger the island's economy further. 

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn