Elon Musk urges suppliers to leave Taiwan amidst tensions
Elon Musk's company SpaceX has asked its suppliers in Taiwan to relocate their operations to another country. One of the world's wealthiest individuals is reportedly concerned about the geopolitical situation surrounding the island. Chinese leader Xi Jinping wants to "unify" Taiwan with China.
According to Reuters, SpaceX has asked some Taiwanese companies to move their headquarters to Vietnam or Thailand. The British "Guardian" reminds us that 46 entities operate in Taiwan, producing components and equipment for the satellite industry. About 10 of them directly supply SpaceX.
The company Chin-Poon Industrial, which collaborates with Musk's space business, confirmed that SpaceX had contacted them. Two other entities - Wistron NeWeb Corporation (WNC) and Universal Microwave Technology - have already expanded their operations to Vietnam.
The "Guardian" notes that in 2022, Elon Musk mentioned in an interview with the "Financial Times" that a conflict over Taiwan is "inevitable." Additionally, two years ago, Musk stated that Taiwan is an integral part of China. These comments hold even more significance following Donald Trump's victory, as the billionaire is expected to have a role in the new White House administration. Trump himself said during election night that Musk is a "star" of the MAGA - Make America Great Again - movement.
Taiwan responds to Musk
The billionaire's actions did not sit well with Taiwanese politicians. Economy Minister JW Kuo noted that the industry "is doing well, is strong and should manage." He added that the government is monitoring the situation regarding the potential relocation of the supply chain outside of Taiwan.
- Short-term political factors should not affect the supply chain relations between international satellite companies and Taiwanese manufacturers - assessed Kuo.
Wistron NeWeb Corporation told the Guardian that while operating in Taiwan, one should consider geopolitical risks, but the most important thing is the needs of customers. Musk's actions have angered some citizens who are calling for a boycott of Tesla. In the past two years, Tesla has ranked among the top ten best-selling cars in Taiwan.
Chinese leader Xi Jinping has been speaking for years about "unifying" Taiwan, and Donald Trump has announced that if China moves into Taiwan, the USA will impose tariffs of 150-200% on Chinese exports. Regardless of whether there would be an attack on Taiwan, Trump also promised that Chinese goods imported into America would be subject to a 60% tariff.
