Here at our CUSEF blog, we share news, updates and stories about China and the United States. We provide more than a cursory glimpse of what’s going on between the two powers - here, we offer an in-depth look into their current state of affairs.

CUSEF Express

CUSEF Express - Aug 10, 2022

Daily highlights of developments that affect China and the U.S.
Daily highlights of developments that affect China and the U.S.

China issues white paper on Taiwan

  • China declared its resolution of reunification with Taiwan in a white paper published today. The country’s third white paper on Taiwan reflects unprecedented confidence in the prospect of reunification.

  • The language of China’s Taiwan white papers became increasingly assertive through the years. This is reflected in the Chinese titles of the three Taiwan white papers:

    • 台湾问题与中国的统一 “The Taiwan Question and Reunification of China” (Zh/En) in 1993.
    • 一个中国的原则与台湾问题 “The One-China Principle and the Taiwan Issue” (Zh/En) in 2000
    • 台湾问题与新时代中国统一事业 "The Taiwan Question and China's Reunification in the New Era" (Zh/En) in 2022

  • In the latest white paper, Beijing uses “中国的统一事业” (China’s cause of reunification) as part of the Chinese title, compared with “中国的统一” in the title of the first white paper. Adding the word “事业” shiye, or cause, implies the country is getting down to business on the Taiwan issue. The second Taiwan white paper includes the “one-China Principle” (“一个中国原则”), which is a firmer expression than the title of the first but does not imply forceful actions.

  • The differences are further demonstrated in the texts of the three documents. In the 1993 white paper, Beijing tried to explain its stance, seeking “the understanding and support” of the world. The 2000 white paper was issued a month before Democratic Progressive Party’s Chen Shui-bian was elected as Taiwan leader succeeding independent advocator Lee Teng-hui. That white paper was largely Taipei targeted, and Beijing was hoping for a change of Lee’s course. “Any question can be discussed under the One-China Principle,” the second white paper reads.

  • This time, China’s rhetoric points to the U.S. and Tsai Ing-wen’s DPP authorities. Seemingly giving up the fantasy of reunification through friendly negotiations with Taipei, Beijing is more resolute in its wordings. “China's complete reunification is a process that cannot be halted” — this is one of the subtitles of the white paper. Most importantly, today’s white paper envisions the “bright prospects” for a “peaceful reunification,” suggesting a peaceful reunification is insight and Beijing is confident about it.

CHIPS and Science Act becomes law

  • The landmark act includes $52.7 billion in subsidies for the U.S. semiconductor industry in research, development, production, and education. The appropriation is similar to what was proposed by both Senate and House in the stalled “Innovation and Competition Act.” The fund is divided into four parts:

    • CHIPS for America Fund ($50 billion from 2022 to 2026, including $39 billion in manufacturing incentives and $11 billion for R&D)
    • CHIPS for America Defense Fund ($2 billion from 2023 to 2027)
    • CHIPS for America International Technology Security and

      Innovation Fund ($500 million from 2023 to 2027)

    • Creating Helpful Incentives to Produce Semiconductors (CHIPS)

      for America Workforce and Education Fund ($200 million from 2023 to 2027)

    Private business received the assistance would be banned from expanding some semiconductor production in China for 10 years.

  • The newly passed legislation also provides $1.5 billion for wireless supply chain innovation and a 25% investment tax credit for chips companies.

  • Additionally, the CHIPS and Science Act covers financial and institutional support for advanced technologies related to energy, biology, computing, and quantum communications.

Japanese PM reshuffles cabinet

  • Japanese Prime Minister Fumio Kishida reshuffled his cabinet today as the approval ratings for the government slid by 13% in three weeks to 46%. The ruling Liberal Democratic Party (LDP) won the upper house election a month ago shortly after the assassination of former Prime Minister Shinzo Abe. However, the LDP’s linkage with the Unification Church came under the spotlight after the attack. The assailant of Abe blamed the former prime minister for supporting the contentious religion. The reshuffle was seen as Kishida’s attempt to cut ties with the Unification Church.

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