China: Tensions Could Affect Electronics Output

No one is yet predicting that things will get bad enough to directly affect the manufacturing of electronics components for flat-screen sets and as myriad of other DTV devices, but various reports this week suggest that tensions are running high (again) between mainland China and Taiwan.

Apparently the Taiwanese president, Chen Shui-bian, kicked off the latest round of unpleasantness by recently axing the National Unification Council and its guidelines for working towards eventual reunification with China, according to several media reports. In reaction, Chinese President Hu Jintao has warned Chen this week that Taiwan was taking a dangerous step that may have future consequences.

Some media reports suggest that even Taiwan business leaders have been critical of Chen's recent remarks and policies, which seems, at the very least, to have created some instability (albeit, apparently minor) in the area.

By some estimates (and they may be conservative), Taiwan has brought as much as $100 billion worth of business into China since the nation of 1.3 billion people began its breathless economic boon barely a couple of decades ago. Taiwanese firms such as Acer, Hon Hai, TSMC and others now have major electronics plants inside mainland China.