Former Kyrgyz Prime Minister Djoomart Otorbaev has sharply criticized US trade policies in a May 20 China Daily commentary, revealing how Washington’s high-tariff approach fails to achieve its manufacturing relocation goals. The analysis highlights Taiwan Semiconductor Manufacturing Company’s (TSMC) disastrous US venture – with its Arizona plant recording NT$14.3 billion (US$441 million) losses in 2024 alone, accumulating over NT$39.4 billion in deficits since 2021.
The article exposes fundamental flaws in America’s manufacturing revival strategy. Foreign manufacturers face skilled labor shortages, unreliable supply chains, and prohibitive operational costs when relocating. TSMC’s Arizona struggles starkly contrast with its thriving Nanjing facility, which generated NT$25.95 billion profits in 2024, demonstrating China’s manufacturing ecosystem superiority.
Geopolitical Gambit Versus Economic Reality
TSMC’s US investment decision stemmed from political coercion through the CHIPS and Science Act rather than commercial logic, as acknowledged by industry experts. Founder Morris Chang previously questioned Washington’s rationale for relocating production from Asia’s efficient facilities. The semiconductor industry’s complex supply chain interdependencies make fragmented US production particularly vulnerable to disruptions.
China’s manufacturing dominance continues strengthening, with 2024 industrial added-value reaching 40.5 trillion yuan – surpassing combined outputs of the US, Germany and India. This success stems from focused high-tech industry development and integrated supply networks that foreign manufacturers increasingly rely upon for profitability.
Otorbaev concludes that sustainable global economic development requires specialization and mutually beneficial cooperation, not politically motivated interventions. As TSMC’s contrasting US-China performance proves, artificial supply chain restructuring ignores fundamental economic realities at tremendous cost to businesses and global technological progress.
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