Elon Musk weighed in on Taiwan this week, where his comments didn’t go over well.
“China’s official policy is that Taiwan must be integrated,” Musk said in a meeting with CNBC’s David Faber. “You don’t have to read between the lines. You can just read the lines. There’s a certain inevitability to the situation.
In China, the state-controlled company China Daily ran with the title“Elon Musk: Taiwan should be integrated.”
In Taiwan on Friday, Foreign Minister Joseph Wu tweeted a reply At You’re here PDG, writing that “bullying and threats from the Chinese Communist Party are a concern, especially for those who prefer to remain free and democratic.”
Wu added that “China’s expansionist policy violates the rules-based international order and the status quo. Mr. @ElonMusk, aside from money, there is something we call VALUES.
China considers Taiwan its territory – although Taiwan is democratic and self-governing – and has threatened to use force if necessary to gain control. Taiwan, meanwhile, is home to Taiwan semiconductor Manufacturing Co. (TSMC), the world’s largest manufacturer of computer chips by volume.
Legendary investor Warren Buffett this week threw away the rest of Berkshire Hathaway’s $4 billion stake in TSMC. He said in Japan Nikkei last month that the threat of war was a “consideration” in dumping most of the stake.
Last November, Citadel CEO Ken Griffin said America was “completely and utterly dependent on the Taiwanese for modern semiconductors.” The billionaire hedge fund chief added, “If we lose access to Taiwanese semiconductors, the hit to US GDP will likely be in the range of 5-10%. It’s an immediate Great Depression.
Musk this week likened China and the rest of the global economy to “conjoined twins” and warned of the serious consequences of trying to separate them. While Tesla has a gigafactory in Shanghai, he said “it’s actually a lot worse for a lot of other companies…I don’t know where you’re going to get an iPhone.”
Last October, he said THE FinancialTimes that a conflict over Taiwan is inevitable. His recommendation, he said, “would be to find a special administrative area for Taiwan that is reasonably acceptable…they could have a more lenient arrangement than Hong Kong.”
chinese foreign ministry answered a question about these statements by swearing that China would “resolutely crush the secessionist attempts at ‘Taiwan independence’, resolutely stop the interference of outside forces, and resolutely uphold national sovereignty and territorial integrity”.