What Nancy Pelosi’s Taiwan Trip Means for Business – The New York Times

by | Aug 3, 2022 | Business

Pelosi means business Speaker Nancy Pelosi left Taiwan today after a short visit that could have major repercussions. It drew unusual support from Republicans, condemnation from Beijing and quiet defiance from her hosts in the face of Chinese threats. But China experts predict more fallout may be ahead for businesses and investors from a trip that tested China’s appetite for confrontation.“The world faces a choice between democracy and autocracy,” Pelosi said today during a meeting with Taiwan’s president, Tsai Ing-wen. “America’s determination to preserve democracy here in Taiwan and around the world remains ironclad.” Economic growth and trade were among her agenda items — along with the pandemic, climate change, human rights and democratic governance — but these were overshadowed by geopolitics and China’s fury at her visit to a self-governing island it considers its territory.Among many other things, the trip was about chips. Pelosi spoke today with Mark Liu, the chairman of Taiwan Semiconductor Manufacturing Company, the world’s biggest chip maker. T.S.M.C. is building a plant in Arizona, and Pelosi and Liu reportedly discussed the recently passed CHIPS and Science Act, which offers subsidies to companies that open U.S. chip plants (more on that below). China’s business backlash to Pelosi’s visit included banning some fish and fruit imports from Taiwan, but the broader impact could reach U.S. shores. Bloomberg reported that China’s CATL, the world’s biggest maker of batteries for electric cars, delayed its decision on a North American factory because of “tensions” surrounding the trip. Semiconductor company stocks slipped yesterday on mounting fears of conflict — especially China’s plan to hold live-fire military drills in areas encircling Taiwan starting Thursday. Liu of T.S.M.C. warned in a CNN interview this week that war over Taiwan threatens to disrupt the geopolitical landscape and the global economy, citing the effect of Russia’s invasion of Ukraine.HERE’S WHAT’S HAPPENING Robinhood lays off nearly a quarter of its staff. The company’s brokerage app surged in popularity at the start of the pandemic, but it is now losing customers, including 1.9 million active monthly users in the second quarter. Separately, New York State regulators announced that they were fining Robinhood’s crypto unit $30 million over violations of anti-money laundering and cybersecurity regulations.Senators will propose a new regulator for Bitcoin and Ether. The legislation, backed by leaders of the agricultural committee, would make the Commodity Futures Trading Com …

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