Taiwan Strait and the Semiconductor Crisis : Its Geopolitical Implications and a Critic to Complex Interdependency Theory

The Taiwan Strait crisis and its geopolitical implications have called into question the theory of complex interdependence. Taiwan’s dominance of the global semiconductor supply chain has made it a critical player in the modern economy, with advanced chips powering industries ranging from electronics and automotive to defense and artificial intelligence. However, the escalating tensions between China and Taiwan, fueled by China’s assertive push for reunification and Taiwan’s resistance, have exposed the limitations of economic interdependence in preventing conflicts. Despite China’s reliance on Taiwanese semiconductors, it has not hesitated to engage in aggressive military drills and belligerent activities around the Taiwan Strait. This chapter argues that security concerns and national interests often outweigh economic interdependence in shaping the dynamics of international politics. The growing significance of semiconductors as a matter of core security and national interest has led nations to prioritize self-reliance and reduce their dependence on others, challenging the notion of complex interdependency. The chapter concludes that while economic ties are important, they are not sufficient to prevent a cross-strait crisis when fundamental issues of security and sovereignty are at stake. The Taiwan Strait crisis serves as a case study highlighting the need for a more nuanced understanding of the interplay between economic interdependence and geopolitical realities in an increasingly complex world.