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Beyond symbolic importance, Taiwan represents a strategic economic asset. The island nation is vital to global supply chains, ranking near the top 20 economies worldwide. Crucially, it dominates the semiconductor industry, producing over 90% of the world's advanced semiconductor chips—essential components for modern technology. This dominance is showcased by the success of the Taiwan Semiconductor Manufacturing Company (TSMC), vital for tech giants like Apple.
Taiwan's geographic positioning also offers significant leverage over crucial trade routes in the Pacific. However, as Taiwan increasingly diversifies its trade partnerships, particularly towards the U.S. and Southeast Asia, China feels the pressure to accelerate its militaristic ambitions to secure Taiwan.