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ACTION MEMO FOR THE MINISTER
December 7, 2022
FROM: Jin Zhuanglong (Minister, Ministry of Industry and Information Technology)
SUBJECT: An Economic Response to US Speaker McCarty’s Visit to Taiwan
BACKGROUND
US Speaker of the House Kevin McCarty recently made an unannounced visit to Taipei,
during which he stated that “the United States will act to protect a free and democratic Taiwan.”
Clearly, his statement highlights a growth in thought by foreign governments of a separation of
the two ideas of Taiwan and China, as evidenced by the referral of protecting “Taiwan” from an
inferred hostility of “China.” Additionally, the National Chengchi University also finds that
people increasingly identify as “Taiwanese” and not “Chinese.” Though, Biden did declare back
in 2022 that the US would be “willing to use force to defend Taiwan” in case of an invasion, and
reassured Xi that the US is still committed to the “One China Policy.” In any case, McCarty’s
recent event furthers the emergence of an increase in US involvement in the Taiwan conflict, and
the separation of the idea of Taiwan and China.
Traditionally, both the CCP and the People’s Republic of China both lay claim to the idea
that there is “one China,” however, both differ in the belief of what that China is - a PRC or a
ROC? According to Phillip C. Saunders, the PRC aims to prevent Taiwan from achieving
independence and fights for a reunification. However, the ROC and ROT and Taiwanese public
opinion has increasingly grown for support for independence. This US involvement furthers this
divide in support of Taiwanese public opinion, but clearly is detrimental to the PRC goals. In
turn, this may lead to rapid mobilization of the Chinese Military (according to Oriana Skylar
Mastro). The last time that the CCP government acted on a US official’s visit Taiwan for Nancy
Pelosi led to economic targeted suspending of Taiwan agricultural imports.
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INCENTIVES
We, the Ministry of Industry and Information Technology of the People’s Republic of China
strive to “promote the development of major technological equipment and innovation
concerning the communication sector.” As Evelyn Cheng of CNBC analyzed, Taiwan is home to
90% of the production of the world’s most advanced semiconductors. China being home to
leading telecommunications producers such as Huawei and XiaoMi needs the semiconductors of
Taiwanese origin. Our chipmakers are significantly behind in technology. There is an incentive
for the success of our ministry to allow for an increase in technological trade between the
Taiwan and China. With the additional pressures coming from the United States’ governmental
sanctions blocking US chips from reaching China, we need Taiwan’s high-tech chipmakers more
than ever.
Additionally, China’s Thousand Talents Program draws the human capital of the brightest
minds from across oceans to bring them into work within the Chinese technological industry. We,
the Ministry of Industry and Information Technology of the People’s Republic of China strive to
keep expanding our wide asset of brilliant minds in development of the best information
technology. Thus, there exists an incentive to keep immigration into our country open by
solidifying relations with other states, and allowing a swift access between our government and
international consulates/embassies. This only can be guaranteed through peaceful relations, as
any violent or conflict acts will likely lead to the closing down of borders, sanctions, and the
barring of emigration from other states to ours. Otherwise, we will have to sustain the Thousand
Talents Program by forceful takeover of the states in which those bright minds reside in.
Finally, our Ministry of Industry and Information Technology is tasked with the construction
of the national information system and to safeguard our information security. With Martin Beraja
clearly emphasizing the importance of AI in China in terms of our nationwide facial recognition
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system in order to maintain political unrest, it becomes evidently apparent that we should secure
increased funding and greater technological improvements to enhance these systems. Thus, there
exists a final incentive to devote resources and time to the construction of our own domestic
projects.
OBJECTIVES
•
To increase the imports to China of high-tech chips from Taiwan by investing more funds
into imports from Taiwan, securing trade channels.
•
To increase the immigration of talented individuals from Taiwan and other countries by
increasing collaboration and cultural unity.
•
To devote a greater number of resources into domestic developments, ignoring China’s
desire to conquer Taiwan, and maintaining peace.
RECCOMENDATIONS AND ANALYSIS
I, Jin Zhuanglong, as a minister of the Ministry of Industry and Information Technology
of the People’s Republic of China am asking for a Status quo on China’s economic response to
Speaker McCarthy’s words in his surprise visit to Taiwan. By continuing the status quo, and
even improving it, we allow for a greater number of technologies such as chips to be imported
into our nation in a time of trade sanctions from other nations, and avoid further conflicts with
international forces prompting an increased devotion of time into our domestic intelligence and
surveillance projects. Wang Yi and Qin Gang, would likely take the same stance as it would be
beneficial to foreign relations to take this economic stance. Fellow He Lifeng would also likely
take the same stance as this economic decision would allow for greater assets to be contributed to
national development domestically.
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Some may say that the response to defend the national indignity as part of regime
legitimacy would be more appropriate of a response – to impose trade barriers and condemn
Speaker McCarty. However, in the long run, what defines the success of our country is not a
short-term conflict caused by a few words from a foreign official, but rather the rise of our
nation’s economic prowess. The world already knows of our military power, and the US clearly
is keen to keep it in check through the protection of Taiwan as evidenced by their 2021 Report
on our Military. So, we must divert our attention to growing our power and strength internally
without the interference of other states. Addressing the McCarty situation from an economic
perspective thus is highly important, and maintaining the status quo is what will benefit the
People’s Republic of China the most.
BIBLOGRAPHY
Beraja, M., Kao, A., Yang, D. Y., & Yuchtman, N. (2021). Ai-Tocracy. SSRN Electronic Journal.
https://doi.org/10.2139/ssrn.3958653
Cheng, E. (2022, August 17). China needs Taiwan’s biggest chipmaker — more than the other
way around. CNBC. https://www.cnbc.com/2022/08/17/china-needs-taiwans-biggestchipmaker-more-than-the-other-way-around.html
Mastro, O. S. (2022). The Taiwan temptation. In Foreign Affairs.
https://www.foreignaffairs.com/articles/china/2021-06-03/china-taiwan-war-temptation
Ministry of Industry and Information Technology. (n.d.). Retrieved December 7, 2022, from
http://english.www.gov.cn/state_council/2014/08/23/content_281474983035940.htm
Saunders, P. C. (n.d.). Crossing the strait: China’s military prepares for war with Taiwan.
台北時報. (2021, July 24). Survey shows ‘Chinese’ identity at a record low. 台北時報.
https://www.taipeitimes.com/News/taiwan/archives/2021/07/24/2003761369