Taiwan flexes its economic muscle, sparking fears of job losses in trade partners

An automotive engineer welds components at Nelson Mandela University in Gqeberha, South Africa. The move by Taiwan to restrict chip exports to the country could result in job losses in South Africa’s auto industry.

After years of diplomatic setbacks on the world stage, Taiwan has signalled that it is willing to use its dominance of the semiconductor-chip industry as a pressure tactic against countries that challenge its geopolitical interests.

Taipei sent shock waves through South Africa last week when it announced restrictions on its chip exports to the country, triggering fears of massive job losses in South African factories.

Taiwan produces the majority of the world’s most advanced chips, which are required in automotive manufacturing and other sectors. Any restriction on chips coul