Taiwan Mulls Travel Advisory For China-Aligned Nations Amid Political Crackdown - Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD)

In the face of Beijing’s crackdown on Taiwan independence supporters, Taiwan is reportedly contemplating issuing travel advisories for its citizens visiting countries closely aligned with China, including Laos and Cambodia.

What Happened: The proposed action is a reaction to China’s campaign against supporters of Taiwan’s independence, according to a senior Taiwan official and an internal memo, reported Reuters.

China, which views Taiwan as part of its territory, introduced guidelines last year to punish Taiwan independence activists, including the possibility of the death penalty, despite lacking jurisdiction over the island.

According to an official, Taiwanese citizens in Cambodia, Laos, and some unspecified African nations may face the risk of being investigated amid suspicion of supporting independence. According to a memo from the Taiwan government, Beijing’s embassies and overseas police stations in countries that maintain strong ties with China were instructed to enforce the guidelines by focusing on Taiwanese tourists, students, and residents.

Why It Matters: The strained relations between Taiwan and China have been further complicated by economic factors. In February, China accused Taiwan of trying to give up its semiconductor industry to the United States to gain political support. This was in response to reports of Taiwan Semiconductor Mfg. Co. Ltd. TSM discussing a stake in Intel Corp INTC.

However, Taiwan Semiconductor announced a massive $100 billion investment in advanced semiconductor manufacturing in the United States in early March. This move, adding to the company’s ongoing $65 billion project in Phoenix, Arizona, brings its total U.S. commitment to $165 billion.

TSMC’s investment in the U.S. is yet to receive approval from the Taiwanese government based on state laws. According to the opposition party, KMT, this deal could jeopardize Taiwan’s security. A report in The Guardian quoted KMT legislator Ko Ju-Chun saying, “The more TSMC produces in the U.S., the lower Taiwan's geopolitical importance will be, and the less incentive the US will have to help Taiwan in the future."

Notably, major US tech giants like Apple AAPL, NVIDIA NVDA, AMD AMD, Qualcomm QCOM, Intel, and others rely heavily on TSMC.