Taiwan last year briefly flirted with imposing restrictions on its exports of semiconductors as part of an effort to assert its foreign policy interests. But there are strong reasons for officials to avoid weaponising chips, not least because it would risk a political blowback as well as give extra impetus to other countries’ efforts to reduce their dependence on Taiwan-produced semiconductors. While there would be little near-term economic impact, weaponising the chips sector would threaten Taiwan’s long-term prospects.
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