Nancy Pelosi's recent visit to Taiwan has caused tensions between China and the US. China has slammed Pelosi's travel to Taiwan, calling it highly provocative and the highest-ranking visit in 25 years.
Taiwan regards itself as an independent nation with its own constitution and freely elected officials. China sees Taiwan as a breakaway province that will ultimately come under Beijing's rule. China doesn't like Nancy Pelosi's recent visit to Taiwan because it interferes with Beijing's plans.
The United States has been engaging in a delicate balancing act between Taiwan and China. Washington follows ‘One-China' Policy, which recognizes Beijing but allows informal relations and defense ties with Taipei.
US provides arms to Taiwan- it is by far the largest arms dealer for Taiwan- and follows a strategic ambiguity policy about how far it will be willing to go to defend Taiwan in the face of Chinese invasion.
Taiwan’s economy is hugely important. Much of the world’s everyday electronic equipment-from laptops, watches, and game consoles- is powered by computer chips that are made in Taiwan.
TSMC, a Taiwanese corporation, holds over half the world's market. TSMC is a 'foundry' that creates consumer and military-designed semiconductors. It's a $100 billion business in 2021. A Chinese takeover in Taiwan may give Beijing control over a major industry.
According to analysts, a full-scale conflict between the US and China over Taiwan seems unlikely. The Chinese must be careful if they wish to invade Taiwan so close to the Ukraine crisis.
Global relations specialists say both the US and China are firm on Taiwan. They must seem tough and not back down. The US and China are wary of an all-out war. Both sides are weighing the risk of one other's rhetoric carefully.