Taiwan Delegation in U.S., Tariffs May Drop | China in Focus

Welcome to China In Focus. I'm Tiffany Meyer. Our top story. Trade negotiations between the U.S. and Taiwan are underway with a high-ranking Taiwanese delegation arriving in Washington. What can we expect? Defense secretaries from the U.S. and Japan discussing China's growing military threats in the region. That's as the Trump administration reaffirms U.S. engagement in Asia. Japan and the Philippines are boosting their security ties with new defense agreements as tensions with China rise in the Indo-Pacific. And more tariffs for China. The U.S. is imposing a 25 percent tariff on some advanced A.I. chips bound for China, aiming to protect national security. Taiwan has confirmed that its Vice Premier Chen Lichun and her delegation have traveled to the United States for trade negotiations. A joint agreement is expected to be announced soon, followed by the signing of a trade deal. According to the New York Times, the Trump administration is close to finalizing a trade agreement with Taiwan. The deal would lower U.S. tariffs on Taiwanese goods to 15 percent, matching levels agreed to last year with Japan and South Korea. At the same time, Taiwan's largest chipmaker, TSMC, is set to significantly expand its U.S. investment. The company plans to build at least five new semiconductor plants in Arizona, roughly doubling its total number of facilities in the state. On Thursday, its CEO suggested that during an earnings conference, the company is flagging plans for more U.S. factories. We are speeding up our capacity expansion in Arizona and executing well to our plan. Our first fab has already successfully entered high volume production in 4Q24. Construction of our second fab is already complete and tour moving and installation is planned in 2026. Furthermore, we have just completed the purchase of a second large piece of land nearby to support our current expansion plan and provide more flexibility in response to the very strong multi-year AI-related demand. Now, a delegation led by Taiwanese Vice Premier Chen Lichun has arrived in the United States. Taiwan is often described by the Chinese Communist regime as needing reunification, but the island nation has never been under its control. So how does the democratic island play into U.S. credibility, Asian security and America's future in the Pacific? Former Senior Director for China, Taiwan and Mongolia of the U.S. Department of War, Tony Hu, joins us to share his insight. Talk to us about, from an American audience perspective, why is Taiwan important? Communist China likes to say reunification, but Communist China never ruled Taiwan, so there is no reunification. Why is Taiwan important for U.S. interests? Well, number one, a shared core value. Taiwan is a vibrant democracy, and Taiwan is a vibrant democracy because of U.S. influence after World War II. And so it's a little Americana, and we certainly don't want to see a communist country take over this place. In fact, you know, Taiwan has its own military, its own currency, and it's an independent country in all aspects. So it would be very bad, additionally, for U.S. interests. U.S. presence in the Asia-Pacific region actually rests in our ability to help defend Taiwan, because our credibility rests on it. If United States could not stop China at Taiwan, why would Japan, Korea, or Philippines, our treaty allies, believe we can stop China from imposing its will on those countries? In addition, our good friends Japan and Korea, they have no energy, they have no oil. Every car on Japanese road, every plane, every train requires oil that's shipped right past Taiwan, either by Taiwan Strait or on the east side of Taiwan. So if China can take Taiwan, they can literally choke Japan and Korea. So United States at that point, if we lose Taiwan, we might have to retreat out of Asia, which is what China wants. And Asia is an important economic partner for United States. We can't allow that to happen. So if United States is to remain great, Taiwan is a key point. So I think that's why Americans should understand why Taiwan is so important to the United States of America. How should the U.S. be perceiving communist China? It's a little different from, say, the Cold War, as some are saying, the Soviet Union at the time. Maybe neither side really wanted to push that button. Maybe China's younger power is a bit of a different calculus under Xi Jinping. Also, China is the world's second largest economy, a different factor, again, from the Soviet Union. Given all of that, what are the calculations from the U.S. side when it comes to communist China? Well, I think U.S. is already considering the threat from China, mainly from Xi Jinping. His predecessor was promoting peaceful rights, while Xi Jinping is promoting using military strength, hard power. And that is a danger, a serious danger, because if you look at the growth of Chinese military, it is faster than anywhere in history other than Hitler. But pre-World War II Germany, the expansion of German military, Chinese expansion now is faster. Then you look at the threat. There is no threat. Nobody's going to attack China. Why this large military? Most likely it's because they want to impose their will, not only in the Asia-Pacific region, but in other parts of the world, using military power. So this is a real threat. And I think in the latest natural security strategy of the United States, it shows that we are hoping to build a strong alliance in Asia-Pacific so everybody contributes to the deterrence of China, try to deter them from doing any aggressive action. However, I think we're also preparing our friends and allies just in case China does think about and be able to defeat such aggression. Digging into that, we saw, if you will, a very strong Japan, especially under the new prime minister, her comments regarding Taiwan that Japan could respond militarily if there is that Chinese invasion. When it comes to Venezuela, you had President Trump saying, this is America's backyard. We want good neighbors, kind of saying it's America first, a return to the Monroe Doctrine, or as President Trump likes to say, the Donro Doctrine. Given that, though, we do see a lot of Chinese influence in Latin America, America's backyard. With these recent moves, could we see a displacement of that? And then where would that Chinese influence go? And what would that mean for the Indo-Pacific region and the calculus there? Well, you just talked about the top two priorities that was indicated in our national security strategy, the Western Hemisphere and Asia-Pacific. So obviously, Trump takes the priority seriously. In his mind, the Western Hemisphere, the number one threat is illegal immigration, and number two is drugs, and he's taking action on it. Because of taking action, that causes, I believe, the Pacific region to either have more confidence on the United States, and for adversaries, they have to take into consideration threat from the United States. And so, yeah, I believe there's an impact based on U.S. action recently that U.S. not just talk, they actually do something about it. So I hope this serves as further deterrence against any aggression. Well, Tony Hu, thank you so much for joining us. Sure, Tiffany. Have a good one. Foreign Secretary Peter Hegseth met with his Japanese counterpart Shinjiro Koizumi on Thursday. The talks focus on countering China's increasing military activities in the East China Sea and South China Sea. They also reaffirmed that the Trump administration will continue U.S. engagement in Asia. Before departing for the U.S., Koizumi said it's important to demonstrate to both domestic and international audiences that Japan-U.S. unity is unwavering. Ahead of his arrival to Washington, Koizumi stopped in Hawaii and met with Admiral Paparo, commander of U.S. Indo-Pacific Command. Paparo said U.S. forces in the Pacific are preparing for potential contingencies. He also described Japan's efforts to strengthen its defense capabilities as transformational. Japan's defense minister says the Indo-Pacific region is facing a crisis driven by several factors. Military coercion is becoming routine, and nearly everything is being weaponized, from the economy and technology to resources, information and cyberspace. The region is also entering a new age of uncertainty. He called on like-minded Indo-Pacific nations to coordinate defense and capability efforts to counter potential conflict in the region. In his keynote address on Monday, he said, we will link each other's independent efforts like a web, enhance interconnectivity and generate synergy. We will layer these networks across the entire region. Even when some nations face harassment or coercion, the region as a whole will be able to respond collectively. On Thursday, U.S. War Secretary Biyaheksev joined his Japanese counterpart for morning physical training with American troops in Arlington, Virginia. The exercise was a symbolic show of unity as the two allies deepen military cooperation in the Indo-Pacific. Two of the U.S.'s major allies in Asia, the Philippines and Japan, are boosting their security partnership with two new defense agreements. One of the deals allows their militaries to quickly share supplies and services, a move both countries say is aimed at strengthening regional stability. Here's the Philippine foreign secretary on Thursday. We reiterated the Philippines and Japan's shared commitment to upholding the rules-based order governed by international law and the importance of resolving disputes peacefully and through dialogue. In the maritime domain, we both recognize the value of promoting the rule of law, including the freedom of navigation and overflight, especially in the South China Sea. As part of the deals, Japan is providing six million dollars to build facilities bolstering the Philippines Navy. The Philippines says both nations see the importance of promoting freedom of navigation in the South China Sea. The visit comes as the Philippines assumes the chair of the Association of Southeast Asian Nations amid rising tensions in the Taiwan Strait. Japan has warned that stability around Taiwan is critical to global security. Last year, Japan's prime minister made remarks about responding militarily to a Chinese attack on Taiwan. The comment resulted in escalating tensions between Japan and China. Taiwan, which is located almost 70 miles from Japanese territory, rejects China's sovereignty claims. Taiwan's president insists its people alone can decide the island's future. President Trump is tightening controls on advanced U.S.-designed AI chips headed to China. The move includes new tariffs and testing requirements from third-party labs. It's meant to protect U.S. national security. Under an order released Wednesday, the administration imposed a 25 percent tariff on some high-end AI chips bound for China, including NVIDIA's H200 processor. Here's the catch. Even if those chips are made in Taiwan, they must now cross the ocean and enter the U.S. first for third-party testing before they can be shipped to China. Once they enter the U.S., they're hit with the 25 percent tariff, making those advanced chips more expensive for Chinese buyers. Before the move, those chips have been sent directly to China from Taiwan. The rule is limited to China and only applies to specific advanced chips. It doesn't affect chips imported for American companies, U.S. data centers, or government use. This means that everyday consumers and most U.S. businesses won't see an impact. Major U.S. chipmakers, including NVIDIA and AMD, design their chips domestically but rely on Taiwan-based manufacturer TSMC to produce them. For now, the policy's focus is on making it harder for China to access advanced U.S. AI technology. Canadian Prime Minister Mark Carney is kicking off his first day of talks in China. It's the first visit by a Canadian leader in almost a decade. Did Carney get what he wanted from Beijing, and what challenges come with Canada's balancing act between the U.S. and China? NTD's Juliet Song has more. No major breakthrough for Mark Carney's first day talks in China. After meeting with China's Premier Li Qiang, both sides agreed to boost cooperation on clean energy. But Beijing stopped short of promises to buy more Canadian oil and liquefied natural gas, one of Carney's top goals. Carney's here to reduce dependence on the U.S. He also pledged to double Canada's non-U.S. trade over the next decade. Canada has long been one of the U.S.'s closest allies. But relations soured after Trump increased tariffs and suggested Canada should become the 51st state. But finding a new market is no easy task. Canada's relations with China have been strained for years, ever since Canada arrested Huawei's CFO at the request of the U.S. Beijing retaliated by arresting two Canadians. On top of that, China slapped hefty tariffs on Canada's canola, seafood and pork exports. The move came after Canada imposed Via Najibullah, an expert on Canada-China relations told CBC that if Canada wants to lift the tariff, it would likely involve discussions with the U.S. That's because Canada's auto sector is closely integrated with the U.S. and Mexico. Canada's industry minister said negotiations over auto tariffs are still ongoing. Other factors may come into play. Najibullah said China would likely use trade to get Canada to agree with Beijing's narratives on issues like Taiwan. Meanwhile, two Canadian lawmakers ended their trip to Taiwan earlier this week, just ahead of Carney's trip. They said the timing was meant to avoid confusion with Canada's foreign policy. Canada also has its own issues with China. Former Prime Minister Justin Trudeau has said China tried to meddle in the last two Canadian elections. Over 75 percent of Canada's exports go to the U.S., while only 5 percent go to China. Canada also relies heavily on the U.S. for its national defense, making it a difficult balancing act for the country. Carney is set to meet with Chinese leader Xi Jinping on Friday. Juliet Song, NTD News. Coming up, a bipartisan agreement. The U.S. should stay ahead of China in the AI arms race. Lawmakers say it's critical to national security. We take a look at the hearing. China sees us as the enemy. It's high time we do the same. And high-level talks between the U.S., Greenland and Denmark at the White House. How Greenlanders are reacting and responses from the Danish government. More on that after the break here on China In Focus. Welcome back to China In Focus. I'm Tiffany Meyer. Over in the house, both sides of the aisle expressed agreement that staying ahead of China in the so-called AI arms race is crucial for national and economic security. NTD correspondent Jason Blair has more from lawmakers at a Capitol Hill hearing on Wednesday. Winning the AI arms race is key to America's national security and our economic security. The House Foreign Affairs Committee held a full committee hearing on Wednesday, emphasizing the importance for the U.S. to stay ahead of the Chinese Communist Party with AI technology. An environment where it seems that Democrats and Republicans can't agree on much. There seems to be an overwhelming consensus that America must lead the AI race. China sees us as the enemy. It's high time we do the same. The outcome of this race, it directly affects military competitiveness of the United States of America versus China. It is that black and white. I think all of us here and I think most people at home can recognize that no matter how you feel about AI, we want the United States to lead. Expert witnesses were invited to share their expertise and recommendations. Xi Jinping talked about AI in his New Year's address this year. He understands that this is a fulcrum, right? This is the pivotal technology that allows all these other technologies of the future and in the near future. He sees this is so important that he is pulling out all the stops. My primary message to the committee is this. Advanced AI compute is essential to the AI era, enabling both economic dynamism and novel military capabilities. Denying our foreign adversaries access to this resource then is a matter of both geostrategic competition and national security. And in the Senate chamber, the Senate Aging Committee highlighted the Chinese Communist Party's involvement in scams targeting American seniors. Scams targeting seniors are stealing billions of dollars from hardworking Americans, and we here in Congress have a responsibility to confront them head on. Scott says in 2024, older Americans lost over $4.8 billion to fraud. Compounds built and staffed by trafficked workers forced to carry out scams targeting our friends, Americans. Not only is this a disgusting display of our national failures to protect human rights, dignity, and security, it's also another way communist China is undermining our country in targeting the American people. State-backed scamming has emerged from China, just like state-backed industrial espionage efforts. China plays a leading role in scams that originate both in China itself and outside in hotspots across Southeast Asia, for example. Macar 6 says these efforts by the Chinese Communist Party are part of a broader approach to great power competition. Reporting in Washington, D.C., Jason Blair, NTD News. High-level talks between the U.S., Greenland, and Denmark took place on Wednesday at the White House. Greenlanders remain skeptical of President Trump's ambition to control the island, but the talks do seem to be having an impact. Denmark and Greenland are boosting their military presence on the island. Nuke resident Liv Aurora Jensen sat in silence as the foreign ministers of Denmark and Greenland gave an update on their meeting with U.S. officials in Washington, D.C. on Wednesday. Like many in Greenland, the craftswoman and designer hoped the meeting would quell President Donald Trump's ambition to take over the Danish territory. But following the high-stakes meeting with U.S. Secretary of State Marco Rubio and Vice President J.D. Vance, Trump reiterated his desire to take over Greenland. Earlier Wednesday, Denmark and Greenland said they had begun increasing military presence in and around Greenland, in cooperation with allies. On Wednesday evening, a Royal Danish Air Force plane landed in Greenland, with military personnel on board. The Joint Arctic Command said Danish forces will support the preparation of military exercises on the island. With the fate of Greenland still unfolding, residents like Jensen fear for their future. That's all for today's China In Focus. I'm Tiffany Meyer. If you have any feedback on the show or have something you'd like to see us cover, send us an email at ChinaInFocus at NTD.com. We'd love to hear from you. For on-the-clock original news coverage, visit us at NTD.com or download our NTD app. Thanks for watching. See you tomorrow.