There are two Chinas in the world today.

The first China is the People’s Republic of China (PRC). It has over 1.4 billion people. Of course, this is the China that we usually call ‘China’.

Meanwhile, the second China is the Republic of China (ROC). It has over 23 million people. Interestingly enough, this is the China that we usually call ‘Taiwan’.


Source: Wikimedia Commons


Now, both countries have a key role to play in the global supply chain today:

  • China has access to economies of scale, as well as a large pool of relatively cheap labour. Because of this, it has become the world’s largest exporter. Toys, textiles, furniture, consumer electronics — you name it, China has been rolling these products off massive assembly lines at ultra-low prices.
  • Meanwhile, Taiwan is quite different. It is focused on quality rather than quantity. This means that it is higher up on the value chain. The country has a more skilled workforce, as well as advanced R&D. This has allowed it dominate a very important niche: semiconductors. In fact, over 60% of the world’s advanced microchips are manufactured in Taiwan. This means that critical sectors like artificial intelligence, robotics, and automation are almost entirely dependent on Taiwanese tech.

Now, here’s the complication for the world:

  • Taiwan is a self-governing island-nation — but China rejects that sovereignty, claiming Taiwan as its territory.

So, given this state of affairs, there are a few things that investors need to consider:

  • What are the risks?
  • What are the opportunities?
  • What is the future outlook for East Asia?


Your first Quantum Wealth Report is waiting for you:

⚡🌎 Start Your Subscription: NZ$37.00 / monthly

⚡🌎 Start Your Subscription: US$24.00 / monthly