00:00:35.020It is one of the most important geopolitical questions of our day,
00:00:38.500but it doesn't really get the same amount of headlines as, say, the war in Ukraine,
00:00:42.520the Middle East, the fighting with Iran, the terrorists that are constantly attacking Israel.
00:00:48.760But it is a ticking time bomb in the Far East.
00:00:52.520China has its eyes on Taiwan, and Taiwan is hanging on by a thread,
00:00:57.640a democracy that doesn't have as many friends as it would like, at least not those who would
00:01:02.040recognize it and talk openly about their support. Hello, I'm Brian Lilly, and this is the Full
00:01:07.160Comment Podcast. And today we talk to author George S. Takash. He is behind the new book
00:01:12.440Inspired by Taiwan, Why Supporting Taiwan Matters for Global Democracy. George,
00:01:18.220thanks for the time today. Hey, great to be here. Thanks.
00:01:21.620So, a lot of people don't think about Taiwan. It fades into the background. China is high up in people's minds as they ponder important geopolitical questions. What made you say, we need to talk more about Taiwan? Or what we used to call, even if it was incorrect, free China.
00:01:43.360well yeah it's as you said in the intro it is in my view one of the top three geopolitical places
00:01:54.080in the world right now this small island i mean taiwan literally when i was there researching the
00:02:00.300book i rented a car i mean you can drive from the top of the island to the bottom of the island in
00:02:05.640three and a half hours i can't get to ottawa in three and a half hours and i live in the same
00:02:10.820province. Exactly. I mean, it's a very small place and most of it, like three quarters is
00:02:17.720mountainous forest. So it's effectively, if you're Southern Ontario oriented, it's Kitchener,
00:02:24.720Waterloo to Kingston, Peterborough to the 401. But in that space, that small geographic effective
00:02:32.700space, 23 million people, 160 universities and technical colleges, and they produce,
00:02:41.760and this is what Taiwan is best known for, they produce 96% of the world's highest performing
00:02:50.100semiconductor chips, the logic chips. So without Taiwan, there's no smartphone revolution.
00:02:57.080there's no laptops this podcast wouldn't be happening your cars increasingly use their chips
00:03:04.760and so on but at the same time just to your point earlier about why china is upset with taiwan
00:03:12.160taiwan has created in the last 30 years a very high performance democracy i mean it's ranked
00:03:19.880right up there with Canada on the economist ranking scales. It's created a civil society.
00:03:27.140It's got gender equality, sexual diversity. It's got the rule of law as a recovering lawyer. I
00:03:33.260got to tell you, uh, it's rule of law is very impressive. So this story has not been adequately
00:03:42.460told. And what I do in the book is not just talk about, you know, the China-U.S. conflict and how
00:03:50.120it might impact Taiwan, but the first five, six chapters are about Taiwan itself, because you've
00:03:56.960got to get compelled by the story first before you start to understand the geopolitics.
00:04:03.500Well, let's talk a little bit about the history first, because the official government policy
00:04:09.520of Canada, of the United States, of most of the Western world, is that there is only one China.
00:04:17.060And yet, while we don't recognize Taiwan's independence, we don't necessarily recognize
00:04:24.440that China has control over it. So Taiwan's been part of China for hundreds and hundreds of years,
00:04:31.800ruled by the Japanese for a bit. But when Mao Zedong took over, this was where the people that0.98
00:04:37.960didn't support the communist revolution fled to, but it wasn't a democracy at first, was it?
00:04:44.200Brian, I'm going to have to take issue with what you just said when you said China's ruled it for
00:04:49.960hundreds and hundreds of years. Let's just go back to the beginning a little bit.
00:09:51.220If you follow Mr. Jin, the latest dissident, as it were, who finally got released from prison in China, he's now out of China, and listen to his story.
00:10:05.360The bottom line is, and you hit the nail on the head, the Chinese Communist Party in China cannot countenance any other center of power or thought other than its own party.
00:10:20.240And listen, if that's how they run themselves, that's one thing. But to impose that on another country, particularly Taiwan, which is way on the other side of the political spectrum, that's where we should take as Canadians, we should take issue with that.
00:10:38.400so why are we so tepid in wanting to support taiwan you you went there you did a that that
00:10:47.780wonderful driving trip with your wife barb that you describe in the book um makes me want to go
00:10:53.560to taiwan but why are western politicians be it canadian or american or british european
00:11:02.020Why are they so reluctant to give a full defense of Taiwan? They will, you know, make statements about, you know, China not invading or intimidating Taiwan, but we don't even recognize it as an independent country.
00:11:20.900So there's a very interesting solution in place to what was a very difficult problem in the 1970s when communist China, still under Mao, decided that it wanted to re-engage with the world.
00:11:43.020Because through the 50s and 60s, Canada, the U.S., Europe, nobody recognized communist China.
00:11:51.600And everybody recognized effectively Taiwan, then more commonly known as the Republic of China.
00:11:58.480And the Republic of China in the 50s, 60s, they had the seat.
00:12:02.840They had the China seat, for instance, on the Security Council with the veto and so on.
00:12:08.320But when Mao said to the world, look, I want to re-engage, but here's the deal. If you engage with China, you have to downgrade your recognition of Taiwan.
00:12:24.780And that's when Canada and the U.S. and virtually all the other countries in the world said, look, the commercial opportunities are so great in China, we're going to recognize China, but we will not recognize China's control over Taiwan or its purported objective of achieving that control.
00:12:52.200And we came up with what we call our one China policy, which was we understand that China claims Taiwan, but we don't agree with that. We're neutral on that.
00:13:05.580So yes, our official embassy is in Beijing in terms of China, but we have an office in Taipei. It's not called an embassy, but we have a lot of economic exchange between the two countries. We have people-to-people exchanges.
00:13:23.180you won't see a canadian prime minister go to taiwan you won't even see cabinet ministers go
00:13:31.400to taiwan but you will see members of parliament michael chong for instance uh made an emphatic
00:13:38.260statement when he went to taipei recently these were supposed to be on a trip what six seven
00:13:46.440months ago and they were pulled because it angered Beijing. Yes. And that was a mistake
00:13:52.260of the first order. And I think Carney's learned from that. So you're absolutely right. He was
00:13:58.180going, this was coterminous when he went to Beijing to try to reset the relationship with
00:14:04.040China. There just happened to be four Canadian MPs in Taipei. Two of them were liberal, as you say,
00:14:11.940And they were recalled and packed their bags and returned to Ottawa because Carney said, oh, that would be confusing to the Chinese.
00:14:21.700But to his credit, to Carney's credit, later, a few months later, in sort of late April, early May, the Canadian naval vessel, the Charlottetown, after participating in military exercises in northern Philippines, which is really an exercise to think about the defense of Taiwan, were China to attack it.
00:14:48.580The Canadian naval vessel, the Charlottetown, did a passage through the Taiwan Strait on its own.
00:14:56.900And that was to send the signal to China that we very much still support free navigation through the Strait.
00:15:04.820And indirectly, we support peace across the Taiwan Strait.
00:15:09.400So I think Carney's learned from that first faux pas.
00:15:12.800And then more recently, when the Chinese foreign minister was in Ottawa with meetings with our foreign minister, Mizanand, I wasn't in the room, so I don't know the exact words, but I'm pretty sure he gave a strong statement to our foreign minister, who then pushed back and said, look, we can have commercial relations with you, China, but we absolutely are going to continue our relationship with Taiwan as well.
00:15:42.280And that's where hopefully we've got a sort of a an all party consensus in parliament that that's absolutely the right track to take.
00:15:54.680It's more than 90 percent of the advanced semiconductors in the world come out of Taiwan.
00:16:01.760You mentioned earlier that everyone thinks about computers when they hear about semiconductors or chips.
00:16:08.600But if you recall, during the COVID-19 pandemic, there was, for a while, there was a slowdown in supply chains and getting vehicles became difficult.
00:16:23.000You were having to wait months for getting certain types of vehicles because the manufacturers couldn't get the chips.
00:16:29.620correct if production of those chips was interrupted in any sort of way through an
00:16:39.200invasion or some sort of uh instigation by china against taiwan our economy would be in great
00:16:47.940difficulty so earlier you mentioned that it was the economic opportunity with mainland china that
00:16:54.300made people say oh okay we'll switch the economic opportunity is too great shouldn't the fact that
00:16:59.600that we are economically dependent on Taiwan now blow away the idea that we should be neutral?
00:17:05.960Shouldn't we be full-throated in our defense of Taiwan? We effectively need them.
00:17:13.160Yeah, and actually the example you point to, which is a good one, the limited supply chain
00:17:21.340interruption of chips for cars and what that produced in the auto sector, that would be
00:17:28.480magnified many times over. Bloomberg has estimated that if there's an interruption
00:17:35.520of chip production and supply from Taiwan to the rest of the world, it would result in a 10%
00:17:44.400hit to GDP globally and 10%, that's depression level impact. So not just a recession. Now in
00:17:54.760the U S it would only be 6.7%, but still, but still. So to your point, depression level,
00:18:02.920not super bad depression level, but depression level. Yes. So, so Brian, you're, you're bang on
00:18:08.420And look, a bunch of countries like the U.S. are quickly trying to recreate capability and manufacturing supply in their own country.
00:18:20.180But I can tell you again from my trip to Taiwan and what I saw, and there's a whole chapter in the book just on the economics of Taiwan. They have 16 campuses, not just individual buildings, but campuses of TSMC set that against Arizona with three buildings, just three buildings, not campuses.
00:18:45.360So the critical mass is going to remain in Taiwan. So to your point, my response would be, we've got to do both. We've got to send a message to Xi Jinping, along with the other democracies, that taking over Taiwan is not on, and we've got to help in the deterrence effort, right?
00:19:08.800If you want peace, prepare for war through deterrence, so hopefully we never have a war.
00:19:14.760But at the same time, we should be able to sell particularly low-tech commodities to China, our canola, our LNG, and so forth.
00:19:26.480But for instance, on China, we should not be buying their EVs, which is part of the Carney deal.
00:19:33.840That was a mistake. And we shouldn't be buying high tech products from any of the big autocrats because there's a data trail going back to those countries and so on. So you can do both. You can support Taiwan and have limited types of trade with the autocracies.
00:19:55.080i i think the the ship has sailed on buying um tech from china all of our phones all of our
00:20:02.160laptops so much of what we uh use to you know live the high-tech life all come out of china
00:20:11.000perhaps powered by taiwanese um parts and tech but built in china i just looked up you mentioned
00:20:19.540the three buildings in Arizona, they're going to be building more, but that's not coming online
00:20:26.340until 2029. Then they're doing some work in Washington state, some work in San Jose and
00:20:34.140Austin, Texas. But I mean, you're right. We're still going to be super dependent on this Taiwanese
00:20:41.540tech plus the best chips the most advanced chips are still exclusively coming out of taiwan the
00:20:50.380i don't want to get that advantage so but just to finish it so i don't want to get too too technical
00:20:57.080but the building in arizona that's come on stream is at what's called the four nanometer process
00:21:04.160level the chips made in taiwan are two nanometer which doesn't sound like a big difference but
00:21:10.700It's about a 40% difference in performance capacity capability.
00:21:16.560So the critical mass of TSMC is still very much in Taiwan.
00:21:33.180It's kind of like Palo Alto is the San Francisco, Sinshu is the Taipei.
00:21:38.120And when you go to Sinchu, where TSMC has its core factories and offices, there's actually a museum devoted to their innovation, and they highlight Morris Chang, who founded the company in the late 80s.
00:21:56.500He said, look, I'm not going to design chips.
00:21:59.200And so, just to be clear for all your listeners, the NVIDIA chip is designed in California.
00:22:06.340But then that chip design goes to Taiwan, and then TSMC makes the chip based on that NVIDIA California design.
00:22:20.220And then to finish the picture, the machines in the TSMC factories in Taiwan, and these are the most important machines in the world right now, $450 million U.S. for one of these machines, they're actually made, believe it or not, in the Netherlands, right?
00:22:43.080The country that gave us Gouda cheese, wooden clogs, and tulips actually produces the most important chip-making machine in the world.
00:22:52.900What I'm getting at, by the way, is how global the supply chain is.
00:27:08.540Stick around at the end of the episode to hear a sample of one of our favourite episodes from Season 2.
00:27:13.660And if you missed it, there are even more episodes from last season.
00:27:16.860So make sure you subscribe to Canada Did What? everywhere you get podcasts.
00:27:22.260George, I want to ask you in a bit about what really fascinated you about Taiwan, because, you know, as you told me before we started, that the book wasn't originally called Inspired by Taiwan, but it became that due to your trip.
00:27:36.100But I think we've got to focus a little bit first on that question of what happens if China invades. How long do you see before China does act? Most people believe that President Xi and China will at some point try to take over Taiwan by force or intimidation, some sort of leverage.
00:28:02.540What do you see coming out of that after your trip there and all your research on Taiwan?
00:28:09.520So the first thing to really understand is that China's already applying immense pressure on Taiwan.
00:28:20.580There's a whole chapter in the book towards the end of the book called China's Incessant Pressure on Taiwan.
00:28:27.540So, you know, cyber attacks. China launches 2.6 million cyber attacks against Taiwan each day. Not week, not month, each day. There's economic coercion. There was a wonderful story, but with a good ending, where they quickly, during the height of the pineapple harvest, particularly in the south of Taiwan, China says, oh, we're not buying any more pineapples.
00:28:56.200And all of these pineapples are sitting there and, you know, like all fruit, they're going
00:33:11.740you know, 3%, 4%, 6% in that range, very small.1.00
00:33:15.780And the rest is very much Han Chinese.
00:33:19.840But there's a difference between—oh, but sorry, to my point earlier, so Xi Jinping would like the world to think that everybody who's Han Chinese ethnically, in terms of origin and ancestors, owes allegiance to Beijing.
00:33:35.840But that's like saying to the Americans, oh, you're English. You should owe your allegiance to London, England, and King Charles, and the new prime minister, Burnham, etc. And the Americans would laugh at that and say, well, just because we speak English, we're not going to give our allegiance to England.
00:33:58.080And it's very similar in Taiwan. And in fact, even the language, yes, they speak Mandarin Chinese, but they also speak a Taiwanese version of Chinese that when spoken fully and well, a Mandarin speaker from the mainland can't understand.
00:34:18.980But most importantly, they speak democracy. They speak religious diversity. They speak sexual diversity. They speak rule of law. And those values trump this allegiance to a Han Chinese political idea.
00:34:41.140So they're still ethnically Han Chinese, so they have great reverence for their ancestors. A lot of the cuisine is very traditional Asian Chinese. But when you go to Taiwan, you start to see how their architecture, part Asian, part Western. Their music, part Asian, part Western.
00:35:07.080They speak English in many, many circles.
00:35:11.320When you listen to a podcast like this in some Taiwanese circles, it's half Taiwanese and half English, and they just seamlessly go from one to the other.
00:35:23.880I mentioned one of those podcasts in the book.
00:35:26.000So they have moved beyond a narrow sense of Chinese allegiance.
00:35:33.120And the latest polls, and including the voting, it's maybe 7% want to unify with China and 87% absolutely do not.
00:35:45.000But if the leadership in Beijing were less autocratic, could those numbers change?
00:35:56.260Could people say, well, they're going to let us continue to have diversity.
00:36:00.840They're going to continue to let us have our civil society, to, you know, have the rule of law.
00:36:07.080Essentially what they promised Hong Kong and then took away.
00:36:10.980I mean, Hong Kong was once a glorious place on the face of the earth.
00:36:49.680domestic institutions and ways of life and so on.
00:36:54.440But in Hong Kong, Xi Jinping has cracked down.0.99
00:36:57.820So in fact, it's not like the Taiwanese
00:37:02.120have to imagine a world where that promise is broken.
00:37:06.460They see it with their own eyes in the last decade being broken in Hong Kong. So to your point, no, there's no hope of that happening.
00:37:19.720And what I say in the book and my earlier book, Cold War 2.0, is that Xi Jinping is actually more autocratic than even his three or four predecessors. And if anything, he's, you know, he's going the other way.
00:37:38.540And so the chances of all those particularly leaders of Taiwan, because think about this, the current president, William Lai, he's in his late 60s. He was in his early 30s when that struggle for democracy finally came to fruition.
00:37:59.280So you have a leadership generation right now that remembers the autocracy personally, not just, you know, reading about it from dusty history books, but they lived through it.
00:38:11.400So for them to go back to the old system that they worked so hard to give up, we visited two prisons, they're now museums, where the autocrat in Taiwan put people in prison and did the re-education camp thing for 330,000 dissidents and another 3,500 were executed.
00:38:36.220So the current, as I say, leaders and civil society in general, they understand that it would not be at all conducive to what they've got.
00:38:48.220I wonder how long that survives because, you know, I've known many people who fled from behind the Iron Curtain and I'm old enough to remember the Iron Curtain being up and people fleeing those countries and you hear their stories and then you talk to their children or grandchildren and they start espousing views that would take people back to that.
00:39:12.260And you think, how how did you go from fleeing communism to embracing either full on communism or a light version of it?
00:40:07.240Well, one of the mistakes with the Ukraine situation, and one of the lessons that I think we've learned as a community of democracies, is that prior even to 2014, let alone 2022 in the full-scale invasion,
00:40:27.300We did not give Ukraine sufficient military resources, particularly equipment, for them to be able to create such a self-defense regime that Putin would wake up every morning and say, maybe not today, maybe not today.
00:40:48.720So thankfully with Taiwan, up until a recent Trump decision in the spring, the Americans have been selling sufficient weapons, but also Taiwan has been making.
00:41:10.180Now, it's old, but just to get, they've built their own submarine.
00:41:14.720You know, this is fascinating when you think about, you know, Canada, just announcing, you know, the German submarine is our new submarine. The Taiwanese went out and they built their own diesel electric submarine. Now, a lot of the software and the guts of it came from England, granted. They have their own missile system and so on and so forth.
00:41:36.120So they are learning the lessons of Ukraine in that sense. They've increased their military budget sufficiently. They've increased from one week to two weeks, the major war games exercise that takes place every August. And they've included, you know, thousands more people, including civilians into it.
00:41:59.880so they're actually really really muscling up but to your point they need friends
00:42:06.100to your narrow question i think japan will absolutely be there for them and their new
00:42:12.040prime minister who i'm a big fan of has said so i think the philippines will be drawn in because
00:42:17.580they're so interconnected i don't think south korea will they're sort of like the poland of
00:42:23.260Eastern Europe, they've got their own problems with North Korea. But the big question is, well,
00:42:30.300what about the United States? Because, yeah, HMCS Charlottetown is not going to do it.
00:42:36.980Right. So you mentioned Trump made a change in the spring. Explain that.
00:42:42.860So when in the 1970s, as I talked before the break, when the U.S. and other countries said,
00:42:50.460okay, look, we're going to recognize China, but we're going to keep things going on an economic
00:42:55.260and people-to-people level with Taiwan. One of the things that the U.S. Congress did was pass
00:43:01.020the Taiwan Relations Act, the TRA. And under the TRA, the executive must sell weapons to Taiwan.
00:43:10.500And then Reagan, you know, no shy wallflower Reagan, he said, I'm not even going to discuss
00:43:19.120these weapons sales with Beijing. This is between us and Taiwan. And so a lot of military equipment
00:43:27.640has been purchased by Taiwan over the last few decades. And for the first time after the recent
00:43:35.000Trump-Xi Jinping summit in May in Beijing, Trump, you may recall, on the plane ride back to the US
00:43:44.800When asked about, well, are you going to sell these $14 billion worth of arms that Taiwan is ready to buy? He says, well, I'm thinking about it. I'm going to use it as a negotiating chip with China.
00:44:02.780And this was a horrible position to take. This is precisely what detracts from deterrence, because if the Chinese start to see that the U.S. is not as fulsomely supportive, that might precisely be the kind of thing that a Xi Jinping says, oh, well, maybe if I do attack, the U.S. will be, you know, sitting on the wall kind of thing.
00:44:29.840So hopefully, I'm hoping that coming out of the next meeting in September that's coming up, Trump will say, yeah, no, I'm going to approve that sale. And particularly if there's a change in the midterms in November, I think a Democratic-controlled House will force him to do that.
00:44:49.900So it's not beyond correction, but it's not helpful. But at the military level, I can tell you the U.S. military is still doing all the right things. But let me end on the Iran war.
00:45:05.240the use of the precision strike weapons particularly the tomahawk and then the
00:45:12.500interceptors the pack three you know patriot missile interceptors those are dwindling in
00:45:20.680supply and they're even pulling some of that out of asia this is the american military yeah so
00:45:27.560i'm hoping that trump can come to some conclusion on iran without spending any more of those very
00:45:34.520precious munitions, because again, I'm not a warmonger. I'm really not. It pains me that so
00:45:42.780much of this money is being spent on the military, but that's what you have to do to preserve the
00:45:50.420peace. So let's not squander it in the Middle East when what we really need is to make a proper
00:46:26.100Give me the elevator pitch that you would use if you were stuck in an elevator with Donald Trump, Andy Burnham, Mark Carney, and Emmanuel Macron.