Taiwan

US President Donald Trump has appeared on the CBS News programme 60 Minutes just months after he won a $16m settlement from the broadcaster for alleged “deceptive editing”.

In the interview with CBS host Norah O’Donnell, which was filmed last Friday at his Mar-a-Lago residence and aired on Sunday, Trump touched on several topics, including the ongoing government shutdown, his administration’s unprecedented crackdowns on undocumented migrants, the US’s decision to restart nuclear testing, and the trade war with China.

Trump, who regularly appears on Fox News, a right-wing media outlet, has an uneasy relationship with CBS, which is considered centrist.

In October 2020, the president walked out of a 60 Minutes interview in the lead-up to the 2020 election he lost, claiming that the host, Lesley Stahl, was “biased”.

Here are some key takeaways from the interview:

The interview took place one year to the day after Trump sued CBS

The president’s lawyers sued CBS owner Paramount in October 2024 for “mental anguish” over a pre-election interview with rival candidate Kamala Harris that Trump claimed had been deceptively edited to favour Democrats and thus affected his campaign.

CBS had aired two different versions of an answer Harris gave to a question on Israel’s war on Gaza, posed by host Bill Whitaker. One version aired on 60 Minutes while the other appeared on the programme Face the Nation.

Asked whether Israel’s prime minister, Benjamin Netanyahu, listened to US advice, Harris answered: “We are not going to stop pursuing what is necessary for the United States – to be clear about where we stand on the need for this war to end.”

In an alternative edit, featured in earlier pre-broadcast promotions, Harris had given a longer, more rambling response that did not sound as concise.

The network argued the answer was edited differently for the two shows due to time restrictions, but Trump’s team claimed CBS “distorted” its broadcasts and “helped” Harris, thereby affecting his campaign. Trump asked for an initial $10bn in damages before upping it to $20bn in February 2025.

Paramount, in July 2025, chose to settle with Trump’s team to the tune of $16m in the form of a donation to a planned Trump presidential library. That move angered journalist unions and rights groups, which argued it set a bad precedent for press freedom.

Paramount executives said the company would not apologise for the editing of its programmes, but had decided to settle to put the matter to rest.

The company was at the time trying to secure federal approval from Trump’s government for a proposed merger with Skydance, owned by Trump ally Larry Ellison. The Federal Communications Commission has since approved the merger that gives Ellison’s Skydance controlling rights.

On October 19, Trump’s son-in-law, Jared Kushner, and Steve Witkoff, US special envoy to the Middle East, were interviewed on 60 Minutes regarding the Israel-Gaza war.

He solved rare-earth metals issue with China

After meeting with Chinese President Xi Jinping in South Korea last Thursday, Trump praised his counterpart as a “strong man, a very powerful leader” and said their relationship was on an even keel despite the trade war. However, he blamed China for “ripping off” the US through its dominance of crucial rare earth materials.

Trump told 60 Minutes he had cut a favourable trade agreement with China and that “we got – no rare-earth threat. That’s gone, completely gone”, referring to Chinese export restrictions on critical rare-earth metals needed to manufacture a wide range of items including defence equipment, smartphones and electric vehicles.

However, Beijing actually only said it would delay introducing export controls for five rare-earth metals it announced in October, and did not mention restrictions on a further seven it announced in April this year. Those restrictions remain in place.

Xi ‘knows what will happen’ if China attacks Taiwan

Trump said President Xi did not say anything about whether Beijing planned to attack autonomous Taiwan.

However, he referred to past assurances from Xi, saying: “He [Xi] has openly said, and his people have openly said at meetings, ‘We would never do anything while President Trump is president’, because they know the consequences.”

Asked whether he would order US forces to action if China moved militarily on Taiwan, Trump demurred, saying: “You’ll find out if it happens, and he understands the answer to that … I can’t give away my secrets. The other side knows.”

There are mounting fears in the US that China could attack Taiwan. Washington’s stance of “strategic ambiguity” has always kept observers speculating about whether the US would defend Taiwan against Beijing. Ahead of the last elections, Trump said Taiwan should “pay” for protection.

He doesn’t know who the crypto boss he pardoned is

When asked why he pardoned cryptocurrency multibillionaire and Binance founder Changpeng Zhao last month, Trump said: “I don’t know who he is.”

The president said he had never met Zhao, but had been told he was the victim of a “witch hunt” by the administration of former US President Joe Biden.

Zhao pleaded guilty to enabling money laundering in connection with child sex abuse and “terrorism” on his crypto platform in 2023. He served four months in prison until September 2024, and stepped down as chief executive of Binance.

Binance has been linked to the Trump family’s cryptocurrency company World Liberty Financial, and many have questioned if the case is a conflict of interest.

In March 2025, World Liberty Financial launched its own dollar-pegged cryptocoin, USD1, on Binance’s blockchain and the company promoted it to its 275 million users. The coin was also supported by an investment fund in the United Arab Emirates, MGX Fund Management Limited, which used $2bn worth of the World Liberty stablecoin to buy a stake in Binance.

This part of the interview appeared in a full transcript of the 90-minute interview, but does not appear in either the 28-minute televised version or the 73-minute extended online video version. CBS said in a note on the YouTube version that it was “condensed for clarity”.

Other countries ‘are testing nuclear weapons’

Trump justified last week’s decision by his government to resume nuclear testing for the first time in 33 years, saying that other countries – besides North Korea – are already doing it.

“Russia’s testing, and China’s testing, but they don’t talk about it,” Trump said, also mentioning Pakistan. “You know, we’re an open society. We’re different. We talk about it. We have to talk about it, because otherwise you people are gonna report – they don’t have reporters that gonna be writing about it. We do.”

Russia, China, and Pakistan have not openly conducted tests in recent years. Analyst Georgia Cole of UK think tank Chatham House told Al Jazeera that “there is no indication” the three countries have resumed testing.

He’s not worried about Hamas disarming

The president claimed the US-negotiated ceasefire and peace plan between Israel and Hamas was “very solid” despite Israeli strikes killing 236 Gazans since the ceasefire went into effect. It is also unclear whether or when the Palestinian armed group, Hamas, has agreed it will disarm.

However, Trump said he was not worried about Hamas disarming as the US would force the armed group to do so. “Hamas could be taken out immediately if they don’t behave,” he said.

Venezuela’s Maduro’s ‘days are numbered’

Trump denied the US was going to war with Venezuela despite a US military build-up off the country’s coast and deadly air strikes targeting alleged drug-trafficking ships in the country’s waters. The United Nations has said the strikes are a violation of international law.

Responding to a question about whether the strikes were really about unseating Venezuela’s President Nicolas Maduro, Trump said they weren’t. However, when asked if Maduro’s days in office were numbered, the president answered: “I would say, yeah.”

US government shutdown is all the Democrats’ fault

Trump, a member of the Republican Party, blamed Democrats for what is now close to the longest government shutdown in US history, which has been ongoing since October 1.

Senators from the Democratic Party have refused to approve a new budget unless it extends expiring tax credits that make health insurance cheaper for millions of Americans and unless Trump reverses healthcare cuts made in his tax-and-spending bill, passed earlier this year.

The US president made it clear that he would not negotiate with Democrats, and did not give clear plans for ending the shutdown affecting 1.4 million governent employees.

US will become ‘third-world nation’ if tariffs disallowed

Referring to a US Supreme Court hearing brought by businesses arguing that the Trump government’s tariff war on other countries is illegal and has caused domestic inflation, Trump said the US “would go to hell” and be a “third world nation” if the court ordered tariffs to be removed.

He said the tariffs are necessary for “national security” and that they have increased respect from other countries for the US.

ICE raids ‘don’t go far enough’

Trump defended his government’s unprecedented Immigration and Customs Enforcement (ICE) raids and surveillance on people perceived to be undocumented migrants.

When asked if the raids had gone too far, he responded: “No. I think they haven’t gone far enough because we’ve been held back by the judges, by the liberal judges that were put in by [former US Presidents Joe] Biden and [Barack] Obama.”

Zohran Mamdani is a ‘communist’

Regarding the New York City mayoral race scheduled for November 4, Trump said he would not back democratic socialist Zohran Mamdani, and called him a “communist”. He said if Mamdani wins, it will be hard for him to “give a lot of money to New York”.

US president claims Chinese leader ‘openly said’ Beijing would not act on Taiwan while Trump is in the White House ‘because they know the consequences’.

United States President Donald Trump has said that his Chinese counterpart Xi Jinping has assured him that Beijing will not attempt to unify Taiwan with mainland China while the Republican leader is in office.

Trump said on Sunday that the long-contentious issue of Taiwan “never even came up as a subject” when he met with Xi in South Korea on Thursday for their first face-to-face meeting in six years. The meeting largely focused on US-China trade tensions.

“He has openly said, and his people have openly said at meetings, ‘We would never do anything while President Trump is president’, because they know the consequences,” Trump said in an interview with the CBS 60 Minutes programme that aired on Sunday.

Asked in the interview whether he would order US forces into action if China moved militarily on Taiwan, Trump demurred.

The US, under both Republican and Democratic administrations, has maintained a policy of “strategic ambiguity” on Taiwan – trying not to tip its hand on whether the US would come to the island’s aid in such a scenario.

“You’ll find out if it happens, and he understands the answer to that,” said Trump, referring to Xi.

But Trump declined to spell out what he meant in the interview conducted on Friday at his Mar-a-Lago resort in Florida, adding: “I can’t give away my secrets. The other side knows.”

US officials have long been concerned about the possibility of China using military force against Taiwan, the self-governed island democracy Beijing claims as part of its territory.

The 1979 Taiwan Relations Act, which has governed US relations with the island, does not require the US to step in militarily if China invades but makes it US policy to ensure Taiwan has the resources to defend itself and prevent any unilateral change of status by Beijing.

Liu Pengyu, a spokesman for the Chinese Embassy in Washington, DC, did not respond directly to a query from The Associated Press news agency about whether Trump has received any assurances from Xi or Chinese officials about Taiwan. He insisted in a statement that China “will never allow any person or force to separate Taiwan from China in any way”.

“The Taiwan question is China’s internal affair, and it is the core of China’s core interests. How to resolve the Taiwan question is a matter for the Chinese people ourselves, and only the Chinese people can decide it,” the statement added.

The White House also did not provide further details about when Xi or Chinese officials conveyed to Trump that military action on Taiwan was off the table for the duration of the Republican’s presidency.

The 60 Minutes interview was Trump’s first appearance on the show since he settled a lawsuit this summer with CBS News over its interview with then-Vice-President Kamala Harris. Trump alleged that the interview had been deceptively edited to benefit the Democratic Party before the 2024 presidential election. Trump initially sought $10bn in damages, later raising the claim to $20bn.

Marilyn Hubalde recalls the fear of local residents in Batanes, Philippines, when they first heard military helicopters during joint exercises with U. S. troops in April 2023. Hubalde’s helper even hid in the woods, thinking war had begun. The military drills, part of increased U. S.-Philippines cooperation, involve airlifting anti-ship missile launchers to the islands, marking a significant shift for the once-peaceful province.

Situated near Taiwan, Batanes is now seen as a frontline region in the competition between the U. S. and China for influence in Asia. The province is close to the Bashi Channel, an important shipping route between the Philippines and Taiwan, which connects the South China Sea to the Western Pacific. The recent exercises highlighted how both countries plan to use ground-based missiles to prevent Chinese naval access in potential conflicts.

Experts emphasize that denying Chinese control of the Bashi Channel is crucial, as it could decide the outcome of any conflict. Retired military officials state that controlling the northern Philippines is essential for any Chinese invasion of Taiwan, which China claims as its territory. President Xi Jinping has stated that China may use force to assert control over Taiwan, a position Taiwan’s government rejects, insisting that its future is for its people to determine.

China’s foreign ministry has warned the Philippines against involving external forces and escalating tensions in the South China Sea, calling Taiwan an internal issue that should not involve outside interference. The Pentagon and Taiwan’s defense ministry did not provide comments on these developments.

Using the ‘First Island Chain’

American military deployments in Batanes are part of a broader Pentagon strategy focused on using the Philippines’ geographic position to deter or counter Chinese military actions towards Taiwan and other areas in the South China Sea. The Philippines, consisting of over 7,600 islands and vital maritime chokepoints, is essential to the “First Island Chain,” which comprises territories controlled by U. S. allies, forming a barrier against China’s expanding navy. Rear Admiral Roy Trinidad of the Philippine Navy stated that the archipelago serves as a crucial gateway between the South China Sea and the Pacific Ocean.

The U. S. aims to ensure this gateway remains secure, despite uncertainties about American security commitments under President Donald Trump. Efforts have intensified since President Joe Biden took office to strengthen defense collaboration with the Philippines. Recent reports indicate an evolving and permanent U. S. military presence in the country, characterized by joint exercises and ongoing training, reversing an earlier period after the U. S. left its military base at Subic Bay in 1992.

In a meeting between Philippine Armed Forces chief General Romeo Brawner and U. S. Indo-Pacific Command head Admiral Samuel Paparo, the two sides agreed to more than 500 joint engagements for 2026, covering various military activities. U. S. Secretary of Defense Pete Hegseth highlighted a focus on enhancing capabilities to counter Chinese aggression in the First Island Chain, noting that training activities with the Philippines are increasing in scale and duration.

The cooperation under President Ferdinand Marcos Jr. is vital for containing Chinese forces, especially in a potential conflict scenario. Marcos has stated that should war arise over Taiwan, the Philippines would be inevitably involved, while also emphasizing the desire to avoid conflict. The Philippine defense ministry expressed confidence in the commitments made by the Trump administration.

China’s recent military movements demonstrate the importance of the Bashi Channel for its Pacific strategies. The region has seen enhanced Chinese naval activity, including exercises near Japan, which highlight its ambitions. In response to Chinese “gray-zone” warfare aimed at the Philippines, which involves intimidation tactics against Philippine vessels, the military has reported unauthorized incursions by Chinese ships into Philippine waters. The defense ministry asserts that these actions challenge international law and reflect China’s desire to reshape the global order. China’s foreign ministry did not provide responses regarding these tactics.

War Jitters in Batanes

Communities near key military passages in the archipelago feel vulnerable due to preparations for conflict. In Batanes, residents, like Hubalde, rushed to buy essential supplies like rice, oil, sugar, and milk when military exercises began. The islands heavily depend on regular shipments from the mainland for food, fuel, and medical supplies.

Provincial Governor Ronald “Jun” Aguto Jr. said that the community has adapted to the military presence, which initially caused alarm and panic buying. Aguto is now focused on updating the provincial contingency plan to prepare for a potential influx of overseas Filipino workers (OFWs) from Taiwan during a conflict. There are around 200,000 Filipinos living in Taiwan. He mentioned that Batanes could be used as a launch pad for bringing these workers home, but the islands can support only 20,000 people, requiring a plan to transfer them to the mainland for better sustainability.

The military is developing a rescue plan, according to Commodore Edward Ike De Sagon, the retiring Philippine Navy commander for Northern Luzon. He emphasized that the military is preparing for various scenarios, including handling large numbers of returning workers and possible refugees from Taiwan. The Philippine military has noted Batanes’ strategic location as a potential logistical hub for evacuations and humanitarian responses.

Concerns about being caught in conflict have intensified, especially if China were to attack Taiwan, with fears that Batanes could be targeted. Past military exercises have indicated preparations for potential fighting in the region. Retired politician Florencio Abad urged Manila authorities to reassure the local population regarding plans for managing the impact of conflict, expressing fears about survival in such a scenario. He highlighted the lack of clear communication from the government about evacuating workers from Taiwan or plans for potential refugees. The Philippine defense ministry stated that it is working on contingency and repatriation plans but did not provide details.

Missiles ‘Designed to Close a Strait’

Locals are concerned about potential conflict as the U. S. and the Philippines conduct annual military drills named Balikatan, which includes the deployment of U. S. Marines and new missile systems. The U. S. brought the NMESIS ground-based anti-ship missile launcher to Batanes, capable of launching the Naval Strike Missile with a range over 300 kilometers. This missile can target hostile warships in the Bashi Channel, providing “sea denial capability,” which is crucial for controlling access to this strait.

In late May, more drills occurred with the NMESIS system moved secretly into position for simulated strikes while U. S. and Philippine marines practiced key area operations. Not long after the NMESIS was deployed, China’s aircraft carrier Shandong entered the Western Pacific through the Bashi Channel for military exercises, spotlighting the strategic importance of this maritime route. China also deployed its other carrier, the Liaoning, similarly entering from the Miyako Strait, as both aimed to enhance their naval capabilities. Japan’s military anticipates that in a conflict, it would prevent Chinese access through certain straits, making the Bashi Channel vital for China.

The Philippine military described China’s naval activities as part of aggressive and illegal regional tactics. Meanwhile, the U. S. Army deployed Typhon launchers in Luzon, armed with powerful anti-ship missiles, which can hit targets deep into China, even as Manila expressed a willingness for further deployments despite Chinese objections.

China condemned the U. S. and Philippines’ military exercises and deployment of offensive weapons as destabilizing. The Philippine military clarified that these missile systems are for training and deterrence, not aimed specifically at any country, and operational security prevents them from confirming the locations of such systems. The military maintained that the presence of these missiles during exercises was temporary and not intended to close any maritime routes like the Bashi Channel.

If China doesn’t like it, ‘we’re doing it right’

Senior Philippine defense officials believe that China’s negative reaction indicates it sees the new anti-ship missiles as a significant threat. Retired Admiral Ong noted that disapproval from China means the Philippines is on the right track. The Philippine military recently acquired BrahMos supersonic anti-ship missiles from India, intended to give ground forces the ability to strike Chinese vessels and land targets while staying hidden. This approach helps avoid the vulnerability of fixed military bases to Chinese attacks.

Joint military exercises with the U. S., Japan, and Australia are being conducted to prepare for potential blockades in key maritime routes in the Philippines, such as the Mindoro Strait and the Balabac Strait. The Marcos administration has also allowed the U. S. access to four new military sites in northern Luzon, expanding military cooperation.

U. S. Secretary of State Marco Rubio confirmed America’s defense commitments to the Philippines shortly after President Trump took office and exempted funds for Philippine security force modernization from an overseas aid freeze. Despite increased military activity, Batanes Governor Aguto believes China is unlikely to attack, as it would escalate into a larger conflict.

However, local residents, like store owner Marilyn Hubalde, are preparing for possible disruptions to their supply chains. They are considering the need to grow their own food should conflict arise, emphasizing the importance of self-sufficiency in uncertain times.

With information from Reuters

The world is closely watching the potential meeting between Trump and Xi Jinping, which could take place at the APEC summit at the end of October, as well as the formal state visit in January of next year. Undoubtedly, the top priority for both the U.S. and China is to ease tensions, with Washington even more eager than Beijing to achieve a “truce.” This is because Beijing imposed large-scale countermeasures against Washington in October, in retaliation for the various sanctions the U.S. has levied on China since August. China’s countermeasures caught the U.S. off guard and left it struggling to respond.

China’s strict restrictions on rare earth exports have shocked the West, particularly the automotive and semiconductor industries. On the other hand, China’s halt to soybean purchases from the U.S. has frustrated Trump’s most loyal supporters. Washington’s initial reaction was one of anger, with threats of retaliation, but within days, its tone softened. This signals that Beijing has struck at the opponent’s sore spot, while Washington lacks effective tools to fight back.

“You have no cards to play.” Trump’s famous rebuke to Zelenskyy has gone global and will undoubtedly go down in history. Embarrassingly, Trump now finds himself in a similar predicament with Beijing: nearly “out of cards.” To demonstrate that he still has some in hand, Trump has finally pulled Taiwan out of his pocket.

On October 20, in an interview with Bloomberg, Trump listed Taiwan as one of the four top priorities in U.S.-China negotiations—alongside rare earths, soybeans, and fentanyl—and stated, “We’ll get along very well with China.”

According to a report in The Guardian, Trump explicitly said that China “doesn’t want” to invade Taiwan and predicted that “nothing will happen.” He described Taiwan as “an apple in China’s eyes,” emphasizing that “America is the strongest military power in the world by far” and “no one dares to mess with us.” In a buddying tone, he added, “I love my relationship with President Xi. We have a great relationship, and that on the Taiwan issue, “we’ll get along very well.”

In the following days, Trump repeatedly made similar statements in the media. However, on October 26, during an interview aboard his plane en route to Asia, he refused to discuss the Taiwan issue and warned that if China invades Taiwan, “it would be very dangerous for China.”

Trump’s rhetoric follows a very simple logic, as is well known: he fabricates bargaining chips out of thin air, uses soft language to lure the opponent to the negotiating table, then employs tough rhetoric to hint at his confidence in making the opponent yield, while refusing to reveal his hand in advance.

In mid-October, the RAND Corporation—a think tank closely tied to the U.S. military—released a report titled Stabilizing the U.S.-China Rivalry, urging Washington to abandon zero-sum thinking and instead adopt a “step-back” approach to stabilize U.S.-China relations and avoid military conflict. On the Taiwan front, the report suggests that the U.S. should encourage Taiwan and China to create shared interests and emotional bonds that gradually lay the groundwork for reunification. This proposal has been interpreted in Taiwan as “gradual unification,” drawing widespread attention and viewed as a signal of the U.S. abandoning Taiwan.

However, rather than “the U.S. abandoning Taiwan,” the RAND report is more accurately a “delaying tactic,” aiming to prolong the status quo in the Taiwan Strait through a “step-back” strategy, thereby securing U.S. strategic interests in the First Island Chain for the next 5-10 years.

The realist tone of the RAND report is becoming the mainstream view in the U.S. For instance, Time magazine recently published an article that enraged Taiwan’s ruling party: The U.S. Must Beware of Taiwan’s Reckless Leader. The piece argues that Taiwanese President Lai Ching-te’s reckless emphasis on Taiwan’s sovereignty is dragging the U.S. into the risk of military conflict with China. Furthermore, it stresses that Taiwan is a core interest for China but merely a non-treaty ally for the U.S.— America has no reason to get embroiled in war for Taiwan’s sake and should instead invest resources in treaty allies like Japan, South Korea, and the Philippines.

In other words, the restraint-oriented thinking in the U.S. that advocates “focusing on the big picture” is gradually gaining the upper hand. Such arguments often come from individuals and organizations familiar with U.S. military capabilities. Simply put, this rhetoric merely underscores a fact: the U.S. military has low odds of winning a war against China, and it’s not worth risking for a non-treaty ally.

Of course, hawkish thinking in the U.S. remains resilient. In contrast to the restrainers, hawks believe that losing Taiwan would severely damage U.S. credibility in East Asia, and from a long-term perspective, the U.S. would suffer more harm than good, thus stressing that “Taiwan is not for sale” and advocating continuing arms sales to Taiwan, even shifting from “strategic ambiguity” to a “strategic clarity” policy.

But we know Trump doesn’t think that far ahead. Before he leaves office, Taiwan must be “cashed in” to feed this narcissist’s ego. In other words, the one inevitably waving the “Taiwan is for sale” sign is Trump.

In fact, for the West, Taiwan is rapidly depreciating because its most valuable asset—the semiconductor industry—is being hollowed out by the U.S. Taiwan’s vice president recently admitted that not only TSMC but also the ruling party has decided to replicate an identical semiconductor supply chain cluster in the U.S.

Taiwan’s authorities explain this investment plan as “avoiding over-reliance on the single Chinese market,” but those familiar with the semiconductor industry know that Taiwan has always relied on the U.S. market, not China—especially for high-end chips. Relocating the industry to the U.S. will only increase corporate costs, raise chip prices, and introduce even more unpredictable risks.

Rare earths are one such unpredictable risk. Semiconductor manufacturing requires rare earths, albeit in small proportions, but without them, chips cannot be produced. If Beijing wants to keep the semiconductor industry in Taiwan, it could completely ban rare earth exports to the U.S. while continuing normal supplies to Taiwan. Even if the U.S. tries to use Taiwan as a rare earth transshipment hub, that’s impossible, as China’s export controls can precisely calculate buyers’ demand volumes, eliminating any transshipment possibilities.

A more fundamental approach would be to ban rare earth exports to both Taiwan and the U.S., driving Taiwan’s value to rock bottom and preventing Trump from demanding too high a price.

In line with Trump’s style, consolidating proxies across the First Island Chain to form a military deterrence against China is undoubtedly another chip in his hand, but this card no longer works on China. Throughout this year, Beijing has repeatedly flexed its military muscles to signal to the U.S. that China cannot be contained. The U.S. military’s front line has effectively retreated to Guam, and Japan, the Philippines, Taiwan, and South Korea all know that the U.S. is pulling back. Without their backer, they dare not confront China.

The key point is that China understands the U.S.’s strategic goal is to stabilize U.S.-China relations, not to break ties. Therefore, only by doubling down on countermeasures against the U.S. can China achieve a stable state of “competition without rupture,” and facts have proven that a hardline strategy leads to a “TACO” outcome. Beijing has no reason or room to concede, especially on the Taiwan issue.

China is testing various tools to offset Western sanctions, leaving the entire West shrouded in fear and anger over rare earth cutoffs, yet powerless to retaliate. This proves that countermeasures to fully offset Western sanctions are nearly complete. If there’s any vulnerability, it’s the financial defense line, which is not yet fully prepared. This explains why China is actively promoting the internationalization of the renminbi and continuing to reduce its holdings of U.S. debt.

On the other hand, Taiwan’s largest opposition party, the Kuomintang (KMT), replaced its party chairman in October with someone determined to change its U.S. policy. Due to the ruling party’s declining popularity, the KMT is poised to win majority voter support in next year’s elections and those in 2028. The new chairman opposes U.S. directives—demanding that Taiwan raise defense spending to 5% of GDP—and extends a peace olive branch to Beijing, potentially leading to dramatic changes in Taiwan-U.S. relations, a development unfavorable to Washington.

Admittedly, the KMT’s new chairman may neither be able nor willing to convince the Taiwanese people to unify with mainland China, but she could reverse the status quo where Taiwan’s major parties are all pro-U.S. Her support from over half the party members stems from two public opinion bases: first, acknowledging oneself as Chinese; second, opposing the U.S. hollowing out Taiwan. According to polls, 4 million KMT supporters accept Chinese identity, and over half (more than 9 million) of all voters, regardless of party, oppose the U.S. hollowing out Taiwan.

While Taiwanese public opinion is divided, most Taiwanese people oppose the Trump administration’s plundering of Taiwan’s semiconductor industry and also oppose war across the strait—this is the main reason for the ruling party’s sagging approval ratings.

A “distrust of America” sentiment pervades Taiwanese society, along with dissatisfaction toward the anti-China president, prompting Beijing to establish “Taiwan Restoration Day” (October 25) to evoke Taiwanese people’s historical memory of China’s recovery of Taiwan after World War II. This aims to maximize nationalism to offset separatism and reduce Taiwanese resistance to unification. At the same time, Beijing uses this move to send a clear signal to the U.S. and neighboring countries: China is determined to resolve the Taiwan issue and is working to remove all obstacles.

Beijing now holds a strong hand; even the U.S.’s “Taiwan card” has become a card China can counter with. In line with Xi Jinping’s decision-making style, he will concede when unprepared, but once fully ready, he will strike suddenly, catching the opponent off guard.

Trump should be very aware that his current position is precarious, making it hard to reverse Beijing’s advantageous stance. Even the “chip card” is no longer effective. Thus, aside from selling Taiwan, he has no other good options—and this is the situation most feared by Taiwan’s elites: the window for “maintaining the status quo” is closing.

However, the sentiments of Taiwan’s elites are also shifting with the situation. Due to the KMT’s policy pivot, more and more Taiwanese elites may pragmatically reassess Taiwan’s future in the coming years, as KMT supporters lead the way, turning back to demand that elites devise countermeasures to change cross-strait relations and foster peace.

When U.S. hawks emphasize “Taiwan is not for sale,” it ironically highlights America’s intent to sell Taiwan. Yet, if this can lead to a peaceful resolution, the trend should be welcomed rather than doubted. After all, there are no winners in war, and those sacrificed are often innocent civilians.

Taiwan is for sale—the buyer is only one. The fear is that Trump might overprice it, backfiring and once again squandering his chance at a Nobel Peace Prize.

Cheng Li-wun will take over the leadership of Kuomintang party on November 1.

Taiwan’s main opposition party has chosen a new reformist leader who is critical of high defence spending but envisions peace with neighbouring China, whose sovereignty claims over the island have long roiled ties.

Members of the opposition Kuomintang (KMT) party, which traditionally has had warm ties with Beijing, voted to elect former lawmaker Cheng Li-wun as chairperson on Saturday.

Cheng, 55, who defeated former Taipei Mayor Hau Lung-bin and four others, will take over the party leadership on November 1.

The election of Cheng, who warns against letting Taiwan “become the sacrifice of geopolitics”, has deep implications for domestic politics at a time of heightened military and political tensions with China.

While the KMT does not control the presidency, the party and its ally – the small Taiwan People’s Party – together hold enough seats to form a majority bloc in the legislature, creating a headache for the ruling Democratic Progressive Party (DPP) trying to get the budget and its legislation passed.

Speaking at party headquarters in Taipei, Cheng said the KMT under her leadership would be a “creator of regional peace”.

“The KMT will make our home the strongest shelter for everyone against life’s storms. Because we will safeguard peace across the Taiwan Strait,” she said. “We must not let Taiwan become a troublemaker.”

Accusations of Chinese interference

Cheng, who started out in politics in the DPP, said during the campaign that she did not support increasing the defence budget, a key policy of President William Lai Ching-te’s administration that also has strong backing from the United States.

Cheng beat the establishment candidate Hau, 73, with more than 50 percent of the vote, though turnout was less than 40 percent of the party members.

But accusations of Chinese interference in the election from a key supporter of Hau’s, the KMT’s vice presidential candidate last year, Jaw Shau-kong, overshadowed the campaign. Jaw said social media accounts had spread disinformation about Hau.

The head of Taiwan’s National Security Bureau, Tsai Ming-yen, said it found more than 1,000 videos discussing the election on TikTok, in addition to 23 YouTube accounts posting related content, with over half of the YouTube accounts based outside of Taiwan. He did not say which candidates these videos supported or directly answer whether they were based in China.

DPP spokesperson Wu Cheng claimed that Chinese interference was obvious and the KMT should carefully guard against it, saying his party hoped that the new chair would prioritise Taiwan’s safety over party interests.

Cheng rejected the allegations of China influencing her party as “very cheap labels”.

Beijing, for its part, said the election was a KMT matter and that some online comments from mainland China internet users did not represent an official stance.

Nvidia (NVDA 1.04%) has hit it out of the park quarter after quarter when reporting earnings, but that hasn’t made investors blasé about the artificial intelligence (AI) giant’s next update. Instead, investors wait with just as much anticipation each time around — and even wonder if, this time, they’ll see a slowdown in what’s been a whirlwind growth story.

As investors count the days until the next report — and in this case, it’s set for Nov. 19 — they look for clues about Nvidia’s AI business, one that’s generated record revenue in recent years. Nvidia, as the world’s biggest AI chip designer, delivered $130 billion in revenue in the latest fiscal year — that’s compared to $27 billion just two years earlier.

Now, one particular clue — and one investors truly can count on — comes from Taiwan Semiconductor Manufacturing (TSM -1.68%), a key Nvidia partner. TSMC, the world’s largest chip manufacturer, just announced big news for Nvidia stockholders. 

Image source: Getty Images.

How Nvidia and TSMC work together

Before we get to this fantastic news, though, we’ll take a quick look at Nvidia’s business and how the company works with TSMC. Nvidia for many years built its business around designing chips for the gaming market, but as AI surfaced as a growth opportunity, the company turned its attention there. And, as they say, the rest is history.

Today, Nvidia dominates this market with its high-powered chips as well as related products and services from enterprise software to networking systems. This has helped earnings and the stock price soar — Nvidia shares have climbed more than 1,100% over the past five years.

It’s important to note that though Nvidia is a chip designer, it’s not a chipmaker. Nvidia doesn’t actually manufacture its AI chips, known as graphics processing units (GPUs), and instead turns to TSMC for that job. TSMC has more than 500 customers across segments of the market, including the world’s chip leaders — from Nvidia to Broadcom and Advanced Micro Devices.

A deep look at the industry

On top of this, since the actual production of advanced chips becomes more and more complex with each chip innovation, TSMC starts work with customers two to three years prior to a new project. “Therefore, we probably get the deepest and widest look possible in the industry,” CEO C.C. Wei said during the company’s earnings call this week.

All of this means TSMC has a very clear picture of what’s happening in today’s AI market and what lies ahead. And this brings me to the news the company delivered this week — news that’s a big deal for Nvidia stockholders.

TSMC reported a 39% increase in profit and a 30% increase in revenue in the recent quarter, beating analysts’ estimates. Importantly, Wei said TSMC continues to see a “strong outlook” from customers and “received very strong signals from our customers’ customers. … Our conviction in the AI megatrend is strengthening.” Wei added that semiconductor demand “will continue to be very fundamental.”

Confirming the trend

All of this is incredible news for Nvidia’s shareholders as it confirms the trends the chip designer has spoken of in recent quarters and its prediction for growth in demand. In Nvidia’s most recent earnings report, back in August, CEO Jensen Huang predicted that AI infrastructure spending may jump to $4 trillion by 2030. TSMC’s report this past week offers us reason to be optimistic about that possibility and suggests that Nvidia is already starting to reap the rewards.

As customers seek GPUs, chip designers must turn to TSMC for production — and it’s likely that TSMC’s revenue gains reflect demand for Nvidia’s chips since Nvidia is the market leader.

All of this means there’s reason for investors to be optimistic about Nvidia’s upcoming earnings report and the messages it will deliver regarding future demand for its GPUs. That’s incredible news for Nvidia stockholders — and makes the stock a great one to buy and hold today.

China has accused the United States of “double standards” after US President Donald Trump threatened to impose an additional 100 percent tariff on Chinese goods in response to Beijing’s curbs on exports of rare earth minerals.

China says its export control measures announced last week were in response to the US restrictions on its entities and targeting of Beijing’s maritime, logistics and shipbuilding industries.

Trump’s tariff threats, which come weeks ahead of the likely meeting between the US president and his Chinese counterpart Xi Jinping, have the potential to reignite a trade war months after Washington lowered the China tariffs from 125 to 30 percent.

The actions by the world’s two largest economies threaten to ignite a new trade war, adding further uncertainty to global trade. So what’s the recent history of US trade measures against China, and will the two countries be able to resolve their differences?

Why did China tighten export controls on rare earths?

On October 9, China expanded export controls to cover 12 out of 17 rare-earth metals and certain refining equipment, effective December 1, after accusing Washington of harming China’s interests and undermining “the atmosphere of bilateral economic and trade talks”.

China also placed restrictions on the export of specialist technological equipment used to refine rare-earth metals on Thursday.

Beijing justified its measures, accusing Washington of imposing a series of trade curbs on Chinese entities despite the two sides being engaged in trade talks, with the last one taking place in Madrid, Spain last month.

Foreign companies now need Beijing’s approval to export products containing Chinese rare earths, and must disclose their intended use. China said the heightened restrictions come as a result of national security interests.

China has a near monopoly over rare earths, critical for the manufacture of technology such as electric cars, smartphones, semiconductors and weapons.

The US is a major consumer of Chinese rare earths, which are crucial for the US defence industry.

At the end of this month, Trump and Xi are expected to meet in South Korea, and experts speculate that Beijing’s move was to gain bargaining advantage in trade negotiations with Washington.

China’s tightening of restrictions on rare earths is “pre-meeting choreography” before Trump’s meeting with Xi, Kristin Vekasi, the Mansfield chair of Japan and Indo-Pacific Affairs at the University of Montana, told Al Jazeera.

How did Trump respond?

On October 10, Trump announced the imposition of a 100 percent tariff on China, effective from November 1.

“Based on the fact that China has taken this unprecedented position … the United States of America will impose a Tariff of 100 percent on China, over and above any Tariff that they are currently paying,” Trump wrote in a post on his Truth Social platform.

He added that this would come into effect on November 1 or before that. Trump added that the US would also impose export controls on “any and all critical software”.

Earlier on October 10, Trump accused China of “trade hostility” and even said he might scrap his meeting with Xi. It is unclear at this point whether the meeting will take place.

“What the United States has is we have a lot of leverage, and my hope, and I know the president’s hope, is that we don’t have to use that leverage,” US Vice President JD Vance told Fox News on Sunday.

How did China respond to that?

China deemed the US retaliation a “double standard”, according to remarks by the Chinese Ministry of Commerce spokesperson on Sunday.

China said that Washington had “overstretched the concept of national security, abused export control measures” and “adopted discriminatory practices against China”.

“We are living in an era of deeper intertwining of security and economic policies. Both the US and China have expanded their conceptions of national security, encompassing a range of economic activities,” Manoj Kewalramani, chairperson of the Indo-Pacific Studies Programme at the Takshashila Institution in Bangalore, India, told Al Jazeera.

“Both have also weaponised economic interdependence with each other and third parties. There are, in other words, no saints in this game.”

Kewalramani said that China started expanding the idea of “national security” much earlier than others, especially with its “comprehensive national security concept” introduced in 2014.

Through this, China began to include many different areas, such as economics, technology, and society, under the term “national security”. This shows that China was ahead of other countries in broadening what counts as a national security issue.

China threatened additional measures if Trump went ahead with his pledge.

“Willful threats of high tariffs are not the right way to get along with China. China’s position on the trade war is consistent: we do not want it, but we are not afraid of it,” the Chinese Commerce Ministry spokesperson said in a statement.

“Should the US persist in its course, China will resolutely take corresponding measures to safeguard its legitimate rights and interests,” the statement said.

What trade measures has the US taken against China in recent history?

2025: Trump unleashes tariff war

A month after taking office for his second term, Trump signed an executive order imposing a 10 percent tariff on all imports from China, citing a trade deficit in favour of China. In this order, he also imposed tariffs on Mexico and Canada. China levied countermeasures, imposing duties on US products in retaliation.

In March, the US president doubled the tariff on all Chinese products to 20 percent as of March 4. China imposed a 15 percent tariff on a range of US farm exports in retaliation; these took effect on March 10.

Trump announced his “reciprocal tariffs,” imposing a 34 percent tariff on Chinese products. China retaliated, also announcing a 34 percent tariff on US products. This was the first time China announced export controls on rare earths.

Hours after the reciprocal tariffs went into effect, Trump paused them for all his tariff targets except China. The US and China continued to hike tit-for-tat levies on each other.

Trump slapped 145 percent tariffs on Chinese imports, prompting China to hit back with 125 percent tariffs. Washington and Beijing later cut tariffs to 30 percent and 10 percent, respectively, in May, then agreed to a 90-day truce in August for trade talks. The truce has been extended twice.

December 2024: The microchip controls are tightened

In December 2024, Trump’s predecessor, former US President Joe Biden, tightened controls on the sale of microchips first introduced on October 2022.

Under the new controls, 140 companies from China, Japan, South Korea and Singapore were added to a list of restricted entities. The US also banned more advanced chip-making equipment to certain countries. Even products manufactured abroad with US technology were restricted.

April 2024: Biden signs the TikTok ban

Biden signed a bill into law that would ban TikTok unless it was sold to a non-Chinese buyer within a year. The US government alleged that TikTok’s Chinese parent company ByteDance was linked to the Chinese government, making the app a threat to national security.

ByteDance sued the US federal government over this bill in May 2024.

In September this year, Trump announced that a deal was finalised to find a new owner of TikTok.

October 2023: Biden introduces more restrictions on chips

In October 2023, Biden restricted US exports of advanced computer chips, especially those made by Nvidia, to China and other countries.

The goal of this measure was to limit China’s access to “advanced semiconductors that could fuel breakthroughs in artificial intelligence and sophisticated computers that are critical to [Chinese] military applications,” Gina Raimondo, who was secretary of the US Department of Commerce during the Biden administration, told reporters.

Prior to this, Biden signed an executive order in August 2023, creating a programme that limits US investments in certain high-tech areas, including semiconductors, quantum computing, and artificial intelligence, in countries deemed to be a security risk, like China.

October 2022: Biden restricts Chinese access to semiconductors

Biden restricted China’s access to US semiconductors in October 2022. The rules further expanded restrictions on chipmaking tools to include industries that support the semiconductor supply chain, blocking both access to American expertise and the essential components used in manufacturing the tools that produce microchips.

Semiconductors are used in the manufacturing of artificial intelligence (AI) technologies. The US government placed these restrictions back then to limit China’s ability to acquire the ability to produce semiconductors and advance in the technological race.

The restrictions made it compulsory for entities within China to apply for licences to acquire American semiconductors. Analysis by the US-based Carnegie Endowment for International Peace described these licences as “hard to get” back then.

Recently, some US lawmakers are calling for even more restrictions, warning that China could quickly reverse-engineer advanced semiconductor technologies on its own, outpace the US in the sector, and gain a military edge.

May 2020: Trump cracks down on Huawei

In May 2020, the US Bureau of Industry and Security intensified rules to stop Huawei, the Chinese tech giant, from using American technology and software to design and make semiconductors in other countries.

The new rules said that semiconductors are designed for Huawei using US technology or equipment, anywhere in the world, would need US government approval before being sent to Huawei.

May 2019: Trump bans Huawei

Trump signed an executive order blocking Chinese telecommunications companies like Huawei from selling equipment in the US. The Shenzhen-based Huawei is the world’s largest provider of 5G networks, according to analysis by the New York City-based think tank the Council on Foreign Relations (CFR).

Under this order, Huawei and 114 related entities were added to a list that requires US companies to get special permission (a licence) before selling certain technologies to them.

The rationale behind this order was the allegation that Huawei threatened US national security, had stolen intellectual property and could commit cyber espionage. Some US lawmakers alleged that the Chinese government was using Huawei to spy on Americans. The US did not publicise any evidence to back these allegations.

Other Western countries had also cooperated with the US.

March 2018: Trump imposes tariffs on China

During his first administration, Trump imposed sweeping 25 percent tariffs on Chinese goods worth as much as $60bn. In June of 2018, Trump announced more tariffs.

China retaliated by imposing tariffs on US products. Beijing deemed Trump’s trade policies “trade bullyism practices”, according to an official white paper, as reported by Xinhua news agency.

In September 2018, Trump issued another round of 10 percent tariffs on Chinese products, which were hiked to 25 percent in May 2019.

During the Obama administration (2009-2017)

In 2011, during US President Barack Obama’s tenure, the US-China trade deficit reached an all-time high of $295.5bn, up from $273.1bn in the previous year.

In March 2012, the US, European Union, and Japan formally complained to China at the World Trade Organization (WTO) about China’s limits on selling rare earth metals to other countries. This move was deemed “rash and unfair” by China.

In its ruling, the world trade body said China’s export restraints were breaching the WTO rules.

In 2014, the US indicted five Chinese nationals with alleged ties to China’s People’s Liberation Army. They were charged with stealing trade technology from American companies.

What’s next for the US-China trade war?

Trump and Xi are expected to meet in South Korea on the sidelines of the Asia-Pacific Economic Cooperation (APEC), which is set to begin on October 31.

But the latest trade dispute has clouded the Xi-Trump meeting.

On Sunday, Trump posted on his Truth Social platform, downplaying the threat: “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”

In an interview with Fox Business Network on Monday, US Treasury Secretary Scott Bessent said, “President Trump said that the tariffs would not go into effect until November 1. He will be meeting with [Communist] Party Chair Xi in [South] Korea. I believe that meeting will still be on.”

When it comes to which of the two players is more affected by the trade war, Kewalramani said that he thinks “what matters is who is willing to bear greater pain, endure greater cost”.

“This is the crucial question. I would wager that Beijing is probably better placed because Washington has alienated allies and partners with its policies since January. But then, China’s growing export controls are not simply aimed at the US. They impact every country. So Beijing has not also endeared itself to anyone,” Kewalramani said, pointing out how Trump’s tariffs and China’s rare earth restrictions target multiple countries.

“The ones affected the most are countries caught in the midst of great power competition.”

On Sunday, US VP Vance told Fox News about China: “If they respond in a highly aggressive manner, I guarantee you, the president of the United States has far more cards than the People’s Republic of China.”

Kewalramani said that so far, Beijing has been more organised, prepared and strategic than the US in its policies.

“That said, it has overreached with the latest round of export controls. US policy, meanwhile, has lacked strategic coherence. The US still is the dominant global power and has several cards to play. What matters, however, is whether it can get its house in order.”

Taiwan Semiconductor (TSMC) (TSM 1.50%) will release earnings for the third quarter of 2025 on Oct. 16. The company produces the majority of the world’s most advanced semiconductors. Since many of the advancements in artificial intelligence (AI) are not possible without its manufacturing capabilities, the stock is likely to remain a market beater over the long term.

Nonetheless, TSMC stock is at an all-time high, and anticipated growth is often not enough of a reason to buy a stock. With an earnings report looming, should investors buy shares of the stock now or stay on the sidelines and hold out for a lower price?

The bull case in TSMC stock

As previously mentioned, TSMC faces a few threats to its long-term bull case. It is the world’s largest semiconductor foundry company, and as of the second quarter of 2025, its market share now exceeds 70%, according to TrendForce. This is up from 67% in the previous quarter.

Additionally, Grand View Research forecasts a compound annual growth rate (CAGR) for AI of 32% through 2033. These combined factors make it highly likely that TSMC’s rapid growth will continue.

For now, it has exceeded that growth rate, and that rapid growth is on track to continue. In the first half of 2025, revenue increased by 40% to $56 billion compared to the same period the previous year. It also stated on its Q2 earnings call that it expects between $31.8 billion and $33 billion in revenue during Q3, representing a 38% rise at the midpoint.

Investors should note that the company beat revenue estimates in each of the previous four reports. Thus, if it beats estimates like it has in previous quarters, the 40% revenue growth rate from the first two quarters of the year could continue into Q3.

Moreover, investors should watch for sales of the most advanced chips, namely those in the 2nm – 5nm size range that power the most advanced AI functions. This is the area where TSMC stands out above competing foundries, since Samsung is the only other chip producer that can manufacture these smaller chips.

Areas of danger

Additionally, even if it is likely to beat earnings estimates, TSMC faces significant challenges.

One is simply keeping up with demand. It allocated almost $20 billion to capital expenditures (CapEx) in the first half of the year, and much of that will go to foundries in Arizona, where it plans to allocate $165 billion to building six advanced manufacturing facilities. Even though that is a considerable sum, it will likely have to maintain or increase that spending to match demand.

Another factor is that the majority of production takes place in Taiwan, which faces considerable geopolitical tensions because of its proximity to China. Investors differ on the danger level, as China can probably not afford to have the supply of chips disrupted by geopolitical events.

Still, investors should also remember that Warren Buffett forced Berkshire Hathaway to sell its TSMC stake for this reason. Hence, investors must remain aware of this concern.

That issue may also be the reason for TSMC’s relatively low valuation. It has traded at an average P/E ratio of 25 over the last five years, far below its key clients such as Apple and Nvidia.

Also, while its current 33 P/E ratio is low for a company with 40% revenue growth, the earnings multiple has rarely exceeded 40 in recent years. That could increase the danger of paying a relative premium for TSMC.

Should investors buy TSMC stock before earnings?

Under current conditions, no obvious factor is pushing investors to either delay or accelerate purchase decisions before the earnings report.

Indeed, nobody knows how TSMC stock will react once the company releases Q3 earnings. Still, some risk-averse investors may feel apprehensive about the report amid the rising P/E ratio.

If that is the case, one strategy is to do both, allocate half of one’s funds to this stock now and wait for the report to spend the additional half. Shareholders who dollar-cost-average into this stock are likely already employing this strategy, and with this near-term outcome unknown, that approach could also work for other investors.

Ultimately, barring the aforementioned geopolitical risks, TSMC stock should remain on a bull trend as it struggles to meet the demand for AI chips. For this reason, time in TSMC is almost certainly more critical to winning with the stock than the timing of one’s purchase decisions.

A long-range kamikaze drone that U.S. firm Kratos is working on together with Taiwan’s National Chung-Shan Institute of Science and Technology (NCSIST) is set to make its maiden flight early next year. The jet-powered Chien Feng IV (Mighty Hornet IV) will feature artificial intelligence (AI) enabled systems and is being developed with a particular eye toward use as an anti-ship weapon. It could also be employed against targets on land and act as a decoy.

Steve Fendley, president of Kratos’ Unmanned Systems Division, offered new details about the Chien Feng IV while speaking with TWZ‘s Howard Altman on the sidelines of the Air & Space Forces Association’s 2025 Air, Space, and Cyber Conference yesterday. A model of the design, which is derived from Kratos’ MQM-178 Firejet target drone, was shown to the public for the first time last week at the biennial Taipei Aerospace & Defense Technology Exhibition. NCSIST is a government-run organization in Taiwan charged with conducting advanced military research and development and test and evaluation work.

Chien Feng IV will fly “soon, early next year,” Fendley said. “The basic aircraft exists. So what we’re doing is we’re integrating mission capability.”

“Our Fire Jet performance characteristics are public, and it’s [Chien Feng IV] a little bit better, pretty much in every category, a little bit more speed, a little bit more altitude, a little bit more endurance,” Fendley added.

“The modified MQM-178’s high-speed capabilities, including a speed of Mach 0.8, high G maneuvering, and a service ceiling of greater than 35,000 feet, make it an ideal base platform for this transformation,” a press release Kratos put out last week had noted.

At the time of writing, the company’s website also says the MQM-178 can fly at altitudes anywhere between 20 and 35,000 feet, can pull turns down to -2 and up to +9 Gs, and carry around 70 and a half pounds of payload internally, as well as 35 pounds more under each wing and an additional 20 pounds in pods on each wingtip. Range and endurance figures for Firejet are not provided, but are offered for an existing derivative called Airwolf, which is configured for tactical mission sets, including acting as a ‘loyal wingman’ for crewed aircraft. Airwolf, also known as Tactical Firejet, has a stated maximum range of 400 nautical miles and a maximum endurance of 1.3 hours. Both Firejet and Airwolf are designed to be launched via pneumatic catapult, and the latter design at least can be recovered at the end of a mission via parachute.

The Chien Feng IV is “our aircraft and NCSIST, so the Taiwanese government, [their] mission systems and warhead,” Fendley said, and deferred to the Taiwanese side for more details about the latter components of the drone’s design.

A brief video on the Chien Feng IV that NCSIST released around the Taipei Aerospace & Defense Technology Exhibition, seen below, highlights an electro-optical/infrared camera system (EO/IR) in the nose, as well as an AI-driven computer and datalink, as being among the design’s features. In terms of terminal guidance, an EO/IR system would make sense as it is immune to electronic warfare and is passive in nature, meaning it doesn’t pump out signals that can alert the target to the incoming threat.

The Chien Feng IV model shown at the exhibition in Taipei was fitted with small underwing pods, which might be able to hold defensive countermeasures or other equipment, or even just more fuel. It also had an opaque nose cone, which could point to additional sensor options, such as a radar seeker.

The NCSIST video also mentions at least a degree of swarming capability, though it is unclear if Chien Feng IVs will be able to operate in a fully networked collaborative manner.

In terms of missions, Chien Feng IVs are expected to be tasked with “ship-hunting, ship-attacking, ground force-hunting, [and] ground-force attacking,” according to Kratos’ Fendley.

As noted, NCSIST has put particular emphasis on the anti-ship mission, which makes sense for Taiwan. Authorities on the island face the real prospect of the Chinese government on the mainland attempting to impose a blockade or even launch a full-scale military intervention across the Taiwan Strait. The People’s Liberation Army Navy (PLAN) and its steadily growing fleets of more capable surface warships would play a critical role in either scenario.

At the same time, the Taiwan Strait is just under 100 nautical miles across at its widest, and Chien Feng IVs with ranges of around 400 nautical miles would also be able to hold Chinese targets at risk on the mainland. At the Taipei Aerospace & Defense Technology Exhibition, NCSIST representatives said the drones could just be employed as decoys, according to a report last week from Jane’s.

If the Chien Feng IV’s AI-enabled systems give it the ability to find and engage targets in a highly autonomous manner, the drone’s capabilities could be magnified greatly in a maritime or land attack scenario, especially against moving targets. This, in turn, could present major complications for an adversary like China. TWZ previously explored in great detail how the steady infusion of AI and machine learning technology, especially when it comes to dynamic targeting and swarming, is pushing development of uncrewed aerial systems toward a revolutionary moment, broadly.

As noted in TWZ‘s past reporting on the Chien Feng IV, massed attacks involving these drones would also compel the PLA to expend commensurate amounts of anti-air interceptors, putting additional strain on Chinese air defenses. More capable interceptors would also be required to engage the higher-flying jet-powered attackers.

Taiwan is also now pushing to significantly expand its inventory of various lower-tier kamikaze drones, including in cooperation with U.S. defense contractor Anduril. This is in line with a larger strategy that American officials have discussed for helping to defend the island from any future Chinese intervention, which has been called “Hellscape” in the past. What is envisaged is the Taiwanese military heavily saturating the air and waters around the island with relatively low-cost uncrewed platforms.

NCSIST also reportedly has an eye toward exporting Chien Feng IV. There is certainly growing global interest in long-range kamikaze drones, driven heavily by observations of their use on both sides of the ongoing war in Ukraine. Attacks by Iran and its regional proxies on Israel and ships in the Red Sea, as well as targets in and around the Middle East, have also underscored the value of this kind of capability. Back in 2019, TWZ called out a then-unprecedented drone and missile attack that Iranian-backed Houthi militants in Yemen launched against Saudi Arabia as a sign of things to come.

“I would say that our recent program with Taiwan, I’m going to call as a spin off of, sort of a combination of Apollo and Athena,” Kratos’ Fendley also told TWZ yesterday.

Fendley did not further elaborate. Details about the Apollo and Athena programs remain limited, but the company has previously told TWZ that they are aimed at the European market. The possibility is now raised that one or both of those designs could be long-range kamikaze drones, or at least be capable of being employed in that role.

Kratos is otherwise pursuing new opportunities globally. This includes a partnership with Airbus on a version of the stealthy XQ-58 Valkyrie drone for the German Luftwaffe. Kratos has now sold two XQ-58s to Airbus, which are expected to start flying in Germany next year following the integration of new mission systems, according to Fendley. The Valkyrie has already been flying for years in a largely experimental role with the U.S. Air Force and the U.S. Marine Corps. The Marines are now in the process of transitioning their XQ-58 efforts to an operational capability.

“Many, many domestic and international customers, who I’m going to say have been at the interest level, have transitioned to the we’re ready to do something level,” Fendley added, speaking more generally. “So, think some Asian countries, think some European countries, and the timeline is in, I would say the next 24 months, you’re going to see those happen pretty quickly.”

When it comes to the Chien Feng IV, specifically, more details may continue to emerge as Kratos and NCSIST get closer to the planned first flight next year.

Contact the author: [email protected]

When investors think about powerhouses in the semiconductor industry, the usual names that dominate the conversation are Nvidia, Advanced Micro Devices, and Broadcom. These companies are responsible for designing the high-performance chips and networking hardware powering next-generation data centers at an unprecedented scale.

Operating more quietly in the background, however, is Taiwan Semiconductor Manufacturing (TSM -1.17%). While TSMC (as it is also known) is less flashy than its peers in the race for artificial intelligence (AI) chips, the company’s supporting role is nonetheless mission-critical.

As the world’s largest chip foundry by revenue — with almost 70% market share — TSMC is the manufacturer behind many of the AI industry’s most advanced processors. Its dominance has left rivals like Intel struggling to catch up, with meaningful market share gains appearing more like a pipe dream than measurable reality.

But in a surprising twist, Tesla CEO Elon Musk recently highlighted a big break for one of those rivals, Samsung Electronics (SSNL.F 9.01%), giving its investors some much-needed optimism. The announcement raises an important question: Will Samsung’s latest win usher in a new era of growth and pose a serious challenge to TSMC’s supremacy?

Why Samsung’s deal with Tesla matters

In late July, Musk announced on X that Tesla had signed a $16.5 billion agreement with Samsung to produce its next-generation inference chip, known as the AI6. Samsung will be manufacturing these chips at a new foundry in Texas, strategically positioning the company closer to Tesla’s headquarters and reinforcing its footprint beyond South Korea.

Tesla’s upcoming innovations — most notably its Robotaxi platform and Optimus humanoid robot — will demand highly sophisticated chip designs and huge computing capacity to function. This makes securing advanced foundry services essential for the company’s ambitions in a rapidly evolving AI landscape.

Image source: Getty Images.

How does Samsung’s relationship with Tesla impact TSMC?

At first glance, a deal of this magnitude might look like a major setback for TSMC. The reality, however, is more nuanced.

Musk clarified that TSMC will manufacture the predecessor chip to the AI6 — aptly called the AI5. In other words, Tesla is deliberately engaging with multiple foundry partners as a strategic, cautious hedge aimed at reducing supply chain risk and ensuring redundancy.

While Samsung’s win provides a boost of credibility to its lagging foundry business, analysts at Morgan Stanley said that the deal is unlikely to meaningfully dent TSMC’s dominance or serve as a material headwind to its long-term revenue and earnings potential.

Moreover, as TSMC continues to invest in its own infrastructure here in the U.S., the company remains on secure footing to deepen its ties with AI’s biggest spenders even further.

Has Samsung delivered a checkmate against its fiercest rival?

Samsung investors have gained tangible proof that strengthens the company’s long-term prospects, but TSMC’s durable technological position remains supported by entrenched scale, advanced processor leadership, and deep customer relationships. For now, this deal underscores that Samsung can still compete for landmark contracts and carve out relevance in an industry where TSMC’s gold-standard reputation remains firmly intact.

At a more macro level, the deal also signals that as AI applications become increasingly more sophisticated, leading enterprises like Tesla are keen on maintaining choice by diversifying key manufacturing partners to ensure stability, flexibility, and supply chain resilience.

For investors, the larger takeaway is clear: Samsung’s relationship with Tesla illustrates that the company is capable of winning meaningful battles. Nevertheless, TSMC is still ahead.

Rather than a checkmate, this development looks more like a fleeting stalemate at best — a dynamic that will continue to evolve as global demand for next-generation chip architectures accelerates and further intensifies the foundry race.

Sept. 26 (UPI) — Russia will train and equip Chinese paratroopers to invade Taiwan, according to leaked documents.

The 800-page cache of documents said that China will buy dozens of military vehicles and parachute systems for its paratroopers, and Russia will provide training to troops on how to operate them.

The documents’ details were verified by the Royal United Services Institute, a British think tank. They appear to show a strengthening alliance between the two countries. They said the deal would give China “expanded air maneuver capability” and “offensive options against Taiwan, the Philippines and other island states in the region.”

“Chinese President Xi Jinping has directed the People’s Liberation Army to be ready to militarily seize Taiwan by 2027,” RUSI said. “A large-scale amphibious operation is highly risky, with the sites suitable for landing craft to deliver troops and equipment ashore constrained by the gradient and load bearing capacity of the beaches. Seizing airfields could allow troops to flow in by air, but as Russia discovered during its invasion of Ukraine, runways can be quickly denied. The PLA is therefore eager to identify ways of diversifying both the methods and locations at which it can move units onto Taiwan.”

“It is a very good example of how the Russians have become an enabler for the Chinese,” making the two countries’ militaries almost impossible to separate, said Jack Watling, senior research fellow for Land Warfare at RUSI, who also wrote the analysis, along with Oleksandr V. Danylyuk.

Russia’s oil and gas, along with its large defense industry, could become a “strategic backup for China,” Watling added.

Taiwan is a self-governing island that China claims as its own. Taiwan also is a U.S. ally.

The leaked documents were found by a hacktivist group, Black Moon. They show Russia agreeing in October 2024 to sell 37 BMD-4M light amphibious vehicles, 11 Sprut-SDM1 self-propelled anti-tank guns, 11 BTR-MDM airborne armored personnel carriers to the People’s Liberation Army Air Force.

The main equipment provision contract had a value of $584 million before it was finalized, The Washington Post reported. It also included several command and observation vehicles and parachute systems designed to airdrop heavy loads from high altitudes.

Other documents in the cache show several rounds of negotiations. There was a meeting in Beijing in April 2024 where the Chinese requested Moscow speed up the delivery timeline for certain vehicles. They also asked Russia to include complete technical documentation and adapt the weaponry to make it compatible with Chinese software, electronic, radio and navigation systems. Russia will also set up a repair-and-maintenance hub in China.

“Military cooperation between China and Russia goes far beyond what has been publicly acknowledged,” a Taiwanese security official commenting on the Russia-China deals told the Washington Post.

Xi and Russian President Vladimir Putin have attended each other’s military parades in the past year. Their two militaries held 14 joint exercises in 2024, which is nearly double what they did 10 years ago, The Post reported.

Last week, Chinese military representatives attended Russia and Belarus’s Zapad-2025 war games where Russia demonstrated the high-altitude airdrops of heavy equipment that China wants to use, according to the documents.

Super Typhoon Ragasa, among the most powerful storms to strike Asia in recent years, has hurled waves higher than lampposts across Hong Kong’s promenades and churned coastal waters along southern China after leaving a trail of devastation in Taiwan and the Philippines.

The death toll in Taiwan reached 14 after floodwaters submerged roads and swept away vehicles, while 10 fatalities were confirmed in the northern Philippines.

In Guangdong province, China’s southern economic hub, more than two million residents were evacuated, according to state-run Xinhua news agency.

As Ragasa continues its westward trajectory, authorities suspended select train services in the Guangxi region on Thursday. Chinese officials have allocated tens of millions of dollars towards disaster relief efforts.

Initially, schools, factories and transportation services were suspended across approximately 12 cities, but some areas farther from the landfall site began preparations to resume operations as wind intensity diminished.

Before reaching China, Ragasa inflicted casualties and destruction in Taiwan and the Philippines as it tracked between the two territories.

In Taiwan, the death toll reached 14 after torrential rain caused a barrier lake in Hualien County to overflow on Tuesday, unleashing muddy floodwaters that destroyed a bridge and transformed Guangfu township roads into violent currents carrying away vehicles and furniture.

Of Guangfu’s approximately 8,450 residents, more than half were able to seek refuge on higher floors or elevated terrain.

Rescue teams established contact with more than 100 previously unreachable individuals in Hualien and conducted door-to-door checks on the remaining 17 residents. Across the self-ruled island, 32 people sustained injuries.

In the northern Philippines, at least 10 deaths were reported, including seven fishermen who drowned on Monday when massive waves and fierce winds capsized their boat off Santa Ana in northern Cagayan province. Five additional fishermen remain missing, according to provincial officials.

Nearly 700,000 people were affected by the catastrophic storm, with 25,000 seeking shelter in government emergency facilities.

Paraguay is one of just 12 countries that maintains diplomatic ties with Taiwan, not China.

But is Beijing using unofficial channels to extend its influence into the South American nation?

In our three-year undercover investigation, we meet a shadowy Chinese businessman who says he is a proxy for Beijing, a claim that China denies.

Our undercover researchers reveal that the alleged middleman has his own agenda.

He is plotting to build a secret scam compound near the Paraguayan capital, a safe haven for Chinese crime bosses fleeing crackdowns in Southeast Asia.

In a special exclusive report, 101 East investigates China’s Paraguay connection.

You can read the full statements given to 101 East below:

Rescuers worked through the night to evacuate residents in the northern Philippines as Super Typhoon Ragasa triggered flooding and landslides in the region. Thousands have been displaced by the strongest storm of the year.

China plans to evacuate close to 400,00 people from southern Shenzhen province as the typhoon makes landfall in the northern Philippines.

China has begun preparing to evacuate 400,000 people from the city of Shenzhen ahead of Typhoon Ragasa, which has barreled through northern Philippines with a wind speed of 215km/h (134mph).

Super Typhoon Ragasa made landfall on Monday in Calayan province in the Philippines at 3pm (07:00 GMT), Philippine forecasters reported. More than 8,200 people were evacuated to safety in Cagayan, while 1,220 fled to emergency shelters in Apayao province.

Tropical cyclones with sustained winds of 215km/h (134mph) or higher in the western Pacific are labelled “super typhoons”.

The Philippines’ weather agency warned that “there is a high risk of life-threatening storm surge with peak heights exceeding 3 metres (nearly 10 feet) within the next 24 hours over the low-lying or exposed coastal localities” of the northern provinces of Cagayan, Batanes, Ilocos Norte and Ilocos Sur.

Philippine President Ferdinand Marcos Jr suspended government work and schools in the capital and 29 provinces in the northern Luzon region.

Ragasa is the 14th weather disturbance to hit the Philippines this year, which comes as the country deals with anti-corruption protests linked to ghost flood-control projects.

The typhoon is forecast to move westwards and remain in the South China Sea until at least Wednesday while passing south of Taiwan and Hong Kong before hitting the Chinese mainland.

Land and sea warnings

Chinese authorities have activated flood control measures in southern provinces and warned of heavy rainfall beginning from Tuesday night.

In China’s Shenzhen, authorities said on Sunday night that they planned to move hundreds of thousands of people from coastal and low-lying areas before the typhoon reaches them.

Other cities in the Guangdong province announced the cancellation of classes, work and public transportation due to the heavy rainfall and strong winds.

Moreover, Taiwan has issued land and sea warnings, cancelled 146 domestic flights, and evacuated more than 900 people from mountainous southern and eastern areas.

Vietnam’s Defence Ministry ordered its forces to monitor the storm and prepare for possible landfall later this week.

Families in Taiwan will receive cash incentives for newborns and fertility treatment.

Taiwan has announced that it is fighting back against low population growth with a new subsidy programme to encourage families to have more children.

Taiwan’s cabinet on Thursday approved standardised cash payouts to families for each newborn and the coverage of a larger proportion of infertility treatment costs, Focus Taiwan reported.

Under the new plan, families will receive $3,320 per newborn, Taiwan News reported, with twins qualifying for a payment of nearly $7,000. The previous system included payouts that ranged from $1,300 to $2,300 per baby, depending on the mother’s employment status.

Taiwan became a “super-aged society” in 2025, meaning that more than 20 percent of its population is aged 65 or older. The island nation has one of the lowest birth rates in the world, CNN reported last year, with its total birth rate in 2022 hitting just .087.

Countries need to maintain a total fertility rate of 2.1 children per woman to hit what the French Institute for Demographic Studies calls “replacement level,” meaning the number of children a couple must have to replace themselves in the population.

Taiwan saw its ninth consecutive year of declining birth rates in 2024, according to Taiwan’s Ministry of the Interior.

The country’s benefits will also extend to couples facing infertility. Women aged 39 and under will reportedly be eligible to receive subsidies for up to six attempts at in vitro fertilization (IVF). Women between the ages of 39 and 45 will receive subsidies for their first three attempts.

Low-and middle-income households will be eligible to receive nearly $5,000 per attempt at IVF.

Minister without Portfolio Chen Shih-chung told Taiwan News the recently announced subsidies are expected to help more than 120,000 families.

Other countries in the region have experimented with the type of programme Taiwan is looking to implement. Parents in Hong Kong receive over $2,500 for each newborn, and parents in South Korea can receive over $2,200 once they’ve had two or more children, CNN reported.

Taiwan’s policy changes are expected to go into effect in January 2026.

The state-of-the-art Fujian is in the final stages of testing before it officially begins active service in China’s navy.

China’s newest aircraft carrier transited through the Taiwan Strait as part of a research and training exercise before its entry into service, according to the People’s Liberation Army Navy (PLAN).

PLAN spokesperson Senior Captain Leng Guowei said on Friday that the Fujian was bound for the South China Sea, where it will undergo testing.

“The cross-regional tests and training are a routine mission of the carrier’s construction process and do not target any specific objects,” Leng said, according to Chinese state media.

The 80,000-tonne Fujian has not been officially commissioned for service, but it will soon join the Liaoning and Shandong vessels as China’s third and most advanced aircraft carrier.

Fu Qianshao, a Chinese military affairs expert, told China’s State-run news outlet Global Times that the Fujian’s research trip to the South China Sea is a sign the aircraft carrier is nearly complete. It earlier underwent tests in the East China Sea and Yellow Sea.

The Fujian’s route was not unexpected, as Chinese state media shared photos and videos of the aircraft carrier leaving Shanghai’s shipyard on Wednesday.

A step forward for China’s blue water navy.

🇨🇳China’s third aircraft carrier, the Fujian passes through Taiwan Straits to hold tests, training in #SouthChinaSea.

By the way, the Taiwan Strait is not ‘international waters’.

The Fujian is China’s first fully domestically… pic.twitter.com/3ffANYEbMH

— Shen Shiwei 沈诗伟 (@shen_shiwei) September 12, 2025

Japan’s Maritime Self-Defense Force on Thursday spotted the Fujian sailing near the disputed but uninhabited Senkaku Islands, in the direction of the Taiwan Strait, accompanied by two PLAN destroyers.

The Senkaku Islands are known as the Diaoyu Islands in China and the Diaoyutai Islands in Taiwan.

The Fujian is just the second aircraft carrier in the world, after the USS Gerald Ford, to host an electromagnetic catapult system that makes it easier for aircraft to take off and land.

Developing such a launch system is a sign that the technology gap between China and the US is closing, according to maritime expert and former United States Air Force Colonel Ray Powell, but there are still some limitations.

The Fujian is 20 percent smaller than US super aircraft carriers and conventionally powered rather than nuclear-powered, Powell said.

The real challenge for China, Powell told Al Jazeera, will be crewing its aircraft carriers as the PLAN will need to divide veteran crew members between the three carriers: Fujian, Liaoning and Shandong.

“China is closing the hardware gap, but developing the operational expertise for effective blue-water carrier ops is what the US has spent nearly a century perfecting,” he said.

While no date has been announced yet for the Fujian’s official commission into active service, the US Naval Institute (USNI) said it is expected to “coincide with a date that holds historical significance to China”.

Possible dates include September 18, the anniversary of Japan’s 1931 invasion of Manchuria, or China’s October 1 national holiday, the USNI said.

The artificial intelligence (AI) boom has been fueled by large tech companies developing impressive AI models that can handle increasingly complex tasks. But a sometimes overlooked aspect of AI are the companies that manufacture complex processors that make those models possible.

Two such semiconductor manufacturing companies are ASML (ASML -2.78%) and Taiwan Semiconductor Manufacturing (TSM -3.05%), often referred to as TSMC. While both have their strengths, which one looks like the better stock right now? Here’s what’s happening with each, and which one is likely the better AI stock.

Image source: Getty Images.

ASML’s opportunities and risks

ASML has a unique angle in the processor manufacturing market through its extreme ultraviolet (EUV) lithography system that’s used to make AI processors. These machines are very complex and not easily replicated, which is why ASML is one of the few companies in the world with these machines. This means that any semiconductor manufacturing company that needs one of these machines has to come to ASML for it.

Despite this opportunity, it’s not all sunshine and rainbows for ASML’s business. The company is reeling from President Donald Trump’s tariffs, and management said recently that potential growth in 2026 will be affected by them. ASML CEO Christophe Fouquet said on the Q2 earnings call: “We continue to see increasing uncertainty driven by macroeconomic and geopolitical developments. Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.”

That’s a shift from management’s previous stance that the company would grow significantly this year and next. The company also lowered its estimated sales for this year to about 32.5 billion euros, down from its previous estimate of up to 35 billion euros.

That uncertainty has caused ASML’s shares to plunge recently, dropping 13% over the past 12 months. And with investors still unsure how tariffs will impact the company over the next couple of years, they’re right to be a little wary.

TSMC’s advantages and challenges

Taiwan Semiconductor also has a unique position in the AI space. The company is the leading manufacturer of AI processors, with an estimated 90% of the advanced processor market. This means that when AI giants, including Nvidia, need AI processors made, Taiwan Semiconductor is often their first choice.

This demand continues to fuel growth for the company, and TSMC’s management estimates that AI sales will double this year. The company is already well on its way, with revenue rising by 38% to $30 billion in Q2. TSMC’s bottom line is impressive as well, with earnings rising 61% to $2.47 per American depository receipt (ADR).

And while ASML is experiencing some turbulence with its business, TSMC is still going strong. Taiwan Semiconductor CEO Wendell Huang said, “Moving into third quarter 2025, we expect our business to be supported by strong demand for our leading-edge process technologies.”

Continued demand for AI processors has resulted in TSMC’s share price climbing about 40% over the past 12 months, which is significantly better than the S&P 500‘s gains of 15% over the same time. While some investors are concerned about when the AI boom will be over, it’s certainly too early to call it now.

The verdict: Taiwan Semiconductor is the better AI stock

Taiwan Semiconductor is increasing sales and earnings at a healthy clip, has a corner on AI processor manufacturing, and continues to benefit from an expanding AI market. While ASML is a strong contender, the company’s recent tariff uncertainty and lowered sales expectations aren’t great news for investors.

ASML stock is also slightly more expensive than TSMC’s at the moment, with a price-to-earnings (P/E) ratio of about 28, compared to Taiwan Semiconductor’s 26. I think both companies could be good long-term AI investments, but for all the reasons above, I think Taiwan Semiconductor deserves the win in this matchup.