Taipei Restricts Chip Exports to South Africa as Diplomatic Row Deepens

TaiwanPlus News

Taiwan announced export controls for 47 products to South Africa, including computer chips and memory, after Pretoria said it would rename and move Taiwan’s representative offices there. Taipei says the step is a countermeasure to protect national sovereignty and will consult with South Africa during a 60-day window before the controls take effect. Officials and industry groups warn the curbs could hit South African electronics, telecom and auto parts sectors, while experts caution the move may create unexpected risks.

Transcript

00:00South African car factories like these could soon be feeling negative effects after Taiwan

00:07announced that it will restrict exports of 47 products to the country, including computer

00:12chips and memory, the latest turn in a dispute over Taiwan's diplomatic missions in South Africa.

00:30At the center is South Africa's move to downgrade Taiwan's representative office from a so-called

00:42liaison office to a commercial office, and to move it out of the political capital Pretoria

00:48to the country's largest city, Johannesburg, about 56 kilometers away. But Taipei protested

00:54the decision from the start, and continues to operate at its Pretoria location. The export

00:59controls represent an escalation from Taipei, and while South Africa is not a major buyer

01:04of advanced chips, certain local industries could be affected.

01:24The move marks a turning point for Taiwan's use of export controls for diplomatic purposes.

01:34Speaking in New York, South Africa's president spoke about Taiwan's actions and his own.

01:39The reduction of exports to South Africa obviously will impact on us, but we will always find a way

01:47of dealing with them or with that issue. So in our view, the step that we have taken has been taken

01:56by many other countries in the world with regard to Taiwan, and our view is that it should not be

02:03over-politicized. Taiwan's role as a key chip supplier creates opportunities for leverage. But some experts

02:10say, as chips made in other countries like South Korea and China continue to advance, the strategy also

02:16poses a risk of backfiring. You might open up a trade opportunity for mainland China in the future,

02:23maybe hurting Taiwan's export market in South Africa in the future, because once it's gone,

02:30maybe it's gone. You know, they might find alternative sources. So, yes, in the short term,

02:39might work, but in the long term, might not. Taiwan's foreign ministry says it wants to consult with

02:44South Africa in the 60 days before the export controls take effect, a window that could show

02:50whether both sides dial down tensions or dig in in their respective positions. Luffy Lee and Chris

02:56Gorin for Taiwan Plus.

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