Trump's Demands on Taiwan's Defense Payments Spark Controversy

Republican presidential candidate Donald Trump has sparked controversy by suggesting Taiwan should pay the U.S. for its defense, highlighting the island's reliance on American military support. His comments negatively impacted the shares of Taiwanese chipmaker TSMC. Despite the rhetoric, Taiwan’s government emphasizes its commitment to self-defense and international responsibility.

Republican presidential candidate Donald Trump has ignited controversy by suggesting in a Bloomberg Businessweek interview that Taiwan should pay the United States for its defense, likening the relationship to an insurance company. Trump's remarks contributed to a significant drop in TSMC's shares on Wednesday.

Trump criticized Taiwan for not contributing to its defense, despite benefiting from U.S. military support. This has raised concerns among analysts that any conflict involving Taiwan, a hub for advanced chip manufacturing, could severely affect the global economy.

Taiwan's government, while reaffirming its strong ties with the U.S., has stated its commitment to bolstering its defense capabilities. Taiwan Premier Cho Jung-tai highlighted the island's ongoing efforts to modernize its military and enhance security independently.

(With inputs from agencies.)