Germany Expands Cooperation With Taiwan on Science, Chips

Germany is expanding scientific cooperation with Taiwan in areas including chips, a move that may help cement bilateral relations but also risks angering China.

(Bloomberg) — Germany is expanding scientific cooperation with Taiwan in areas including chips, a move that may help cement bilateral relations but also risks angering China.

The European country signed a pact with Taiwan, with the two agreeing to work together on science and technology, Bettina Stark-Watzinger, who oversees the education and research portfolios in Chancellor Olaf Scholz’s ruling coalition, told reporters Tuesday in Taipei.

A member of the liberal, pro-business Free Democrats, Stark-Watzinger is the first German federal minister to visit Taiwan in 26 years. Germany and Taiwan don’t have formal diplomatic ties and before her visit Scholz’s government was keen to stress that it stands by its long-standing “one China” policy.

“This arrangement stands for enhancing cooperation — cooperation on the basis of democratic values, transparency, openness, reciprocity, and scientific freedom,” Stark-Watzinger said. “Taiwan is a partner in the field of batteries, i.e. storage technologies, in the field of green hydrogen, which is being developed here, and of course especially in the semiconductor industry, where Taiwan is also a leader.”

Germany is pushing for Taiwan Semiconductor Manufacturing Co. to establish a facility in the country as part of a push to secure key technologies. Stark-Watzinger said that she won’t meet with TSMC officials during her trip, which ends on Wednesday.

Her visit to Taipei comes amid discussions among senior members of Scholz’s cabinet about how Berlin should position itself considering Beijing’s increasingly assertive stance on Taiwan, which China claims as part of its territory.

Scholz’s government is in the final stages of drafting a National Security Strategy in which economic resilience and reducing one-sided dependencies on countries like China will feature prominently. China is expected to be described as an international partner, economic competitor and systemic rival.

“Taiwan and Germany both know that democracy, peace and shared prosperity will lead a road to a brighter future,” said Wu Tsung-tsong, minister of Taiwan’s National Science and Technology Council. “We both see importance in supporting basic research and scientific and economic development.”

–With assistance from Michael Nienaber and Philip Glamann.

(Updates with comments from ministers starting in fourth paragraph)

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