Taiwan Tensions Raise Fears of US-China Conflict in Asia

In this photo released by the US Indo-Pacific Command, the United Kingdom's carrier strike group led by HMS Queen Elizabeth (R 08), and Japan Maritime Self-Defense Forces led by (JMSDF) Hyuga-class helicopter destroyer JS Ise (DDH 182) joined with US Navy carrier strike groups led by flagships USS Ronald Reagan (CVN 76) and USS Carl Vinson (CVN 70) sails to conduct multiple carrier strike group operations in the Philippine Sea, on Oct. 3, 2021. (Jason Tarleton/US Navy via AP)
In this photo released by the US Indo-Pacific Command, the United Kingdom's carrier strike group led by HMS Queen Elizabeth (R 08), and Japan Maritime Self-Defense Forces led by (JMSDF) Hyuga-class helicopter destroyer JS Ise (DDH 182) joined with US Navy carrier strike groups led by flagships USS Ronald Reagan (CVN 76) and USS Carl Vinson (CVN 70) sails to conduct multiple carrier strike group operations in the Philippine Sea, on Oct. 3, 2021. (Jason Tarleton/US Navy via AP)
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Taiwan Tensions Raise Fears of US-China Conflict in Asia

In this photo released by the US Indo-Pacific Command, the United Kingdom's carrier strike group led by HMS Queen Elizabeth (R 08), and Japan Maritime Self-Defense Forces led by (JMSDF) Hyuga-class helicopter destroyer JS Ise (DDH 182) joined with US Navy carrier strike groups led by flagships USS Ronald Reagan (CVN 76) and USS Carl Vinson (CVN 70) sails to conduct multiple carrier strike group operations in the Philippine Sea, on Oct. 3, 2021. (Jason Tarleton/US Navy via AP)
In this photo released by the US Indo-Pacific Command, the United Kingdom's carrier strike group led by HMS Queen Elizabeth (R 08), and Japan Maritime Self-Defense Forces led by (JMSDF) Hyuga-class helicopter destroyer JS Ise (DDH 182) joined with US Navy carrier strike groups led by flagships USS Ronald Reagan (CVN 76) and USS Carl Vinson (CVN 70) sails to conduct multiple carrier strike group operations in the Philippine Sea, on Oct. 3, 2021. (Jason Tarleton/US Navy via AP)

After sending a record number of military aircraft to harass Taiwan over China’s National Day holiday, Beijing has toned down the saber rattling but tensions remain high, with the rhetoric and reasoning behind the exercises unchanged.

Experts agree a direct conflict is unlikely at the moment, but as the future of self-ruled Taiwan increasingly becomes a powder keg, a mishap or miscalculation could lead to confrontation while Chinese and American ambitions are at odds.

China seeks to bring the strategically and symbolically important island back under its control, and the US sees Taiwan in the context of broader challenges from China.

“From the US perspective, the concept of a great power rivalry with China has driven this back up the agenda,” said Henry Boyd, a Britain-based defense analyst with the International Institute for Strategic Studies.

“The need to stand up to China is a strong enough motivating factor that not taking this fight would also be seen as a betrayal of American national interests.”

China claims Taiwan as its own, and controlling the island is a key component of Beijing’s political and military thinking. Leader Xi Jinping on the weekend again emphasized “reunification of the nation must be realized, and will definitely be realized” — a goal made more realistic with massive improvements to China’s armed forces over the last two decades.

In response, the US has been increasing support for Taiwan and more broadly turning its focus to the Indo-Pacific region. US State Department spokesman Ned Price on Tuesday emphasized that American support for Taiwan is “rock solid,” saying “we have also been very clear that we are committed to deepening our ties with Taiwan.”

Washington’s longstanding policy has been to provide political and military support for Taiwan, while not explicitly promising to defend it from a Chinese attack.

The two sides came perhaps the closest to blows in 1996, when China, irked by what it saw as increasing American support for Taiwan, decided to flex its muscle with exercises that included firing missiles into the waters some 30 kilometers (20 miles) from Taiwan’s coast ahead of Taiwan’s first popular presidential election.

The US responded with its own show of force, sending two aircraft carrier groups to the region. At the time, China had no aircraft carriers and little means to threaten the American ships, and it backed down.

Stung by the episode, China embarked upon a massive overhaul of its military, and 25 years later, it has significantly improved missile defenses that could easily strike back, and equipped or built its own aircraft carriers.

The US Defense Department’s recent report to Congress noted that in 2000, it assessed China’s armed forces to be “a sizable but mostly archaic military” but that today it is a rival, having already surpassed the American military in some areas including shipbuilding to the point where it now has the world’s largest navy.

Counting ships isn’t the best way to compare capabilities — the US Navy has 11 aircraft carriers to China’s two, for example — but in the event of a conflict over Taiwan, China would be able to deploy almost the entirety of its naval forces, and also has land-based anti-ship missiles to add to the fight, said Boyd, a co-author of IISS’s annual Military Balance assessment of global armed forces.



Trump Announces Private-sector $500 Billion Investment in AI Infrastructure

US President Donald Trump (L) gives remarks on artificial intelligence (AI) Infrastructure as Larry Ellison (2-L), Chief technology officer of Oracle, Masayoshi Son (2-R), CEO of SoftBank, Sam Altman (R), CEO of OpenAI look on in the Roosevelt Room of the White House in Washington, DC, USA, 21 January 2025. EPA/AARON SCHWARTZ / POOL
US President Donald Trump (L) gives remarks on artificial intelligence (AI) Infrastructure as Larry Ellison (2-L), Chief technology officer of Oracle, Masayoshi Son (2-R), CEO of SoftBank, Sam Altman (R), CEO of OpenAI look on in the Roosevelt Room of the White House in Washington, DC, USA, 21 January 2025. EPA/AARON SCHWARTZ / POOL
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Trump Announces Private-sector $500 Billion Investment in AI Infrastructure

US President Donald Trump (L) gives remarks on artificial intelligence (AI) Infrastructure as Larry Ellison (2-L), Chief technology officer of Oracle, Masayoshi Son (2-R), CEO of SoftBank, Sam Altman (R), CEO of OpenAI look on in the Roosevelt Room of the White House in Washington, DC, USA, 21 January 2025. EPA/AARON SCHWARTZ / POOL
US President Donald Trump (L) gives remarks on artificial intelligence (AI) Infrastructure as Larry Ellison (2-L), Chief technology officer of Oracle, Masayoshi Son (2-R), CEO of SoftBank, Sam Altman (R), CEO of OpenAI look on in the Roosevelt Room of the White House in Washington, DC, USA, 21 January 2025. EPA/AARON SCHWARTZ / POOL

US President Donald Trump on Tuesday announced a private sector investment of up to $500 billion to fund infrastructure for artificial intelligence, aiming to outpace rival nations in the business-critical technology.
Trump said that ChatGPT's creator OpenAI, SoftBank and Oracle are planning a joint venture called Stargate, which he said will build data centers and create more than 100,000 jobs in the United States, Reuters reported.
These companies, along with other equity backers of Stargate, have committed $100 billion for immediate deployment, with the remaining investment expected to occur over the next four years.
SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle Chairman Larry Ellison joined Trump at the White House for the launch.
The first of the project's data centers are already under construction in Texas, Ellison said at the press conference. Twenty will be built, half a million square feet each, he said. The project could power AI that analyzes electronic health records and helps doctors care for their patients, Ellison said.
The executives gave Trump credit for the news. "We wouldn't have decided to do this," Son told Trump, "unless you won."
"For AGI to get built here," said Altman, referring to more powerful technology called artificial general intelligence, "we wouldn't be able to do this without you, Mr. President."
It was not immediately clear whether the announcement was an update to a previously reported venture.
In March 2024, The Information, a technology news website, reported OpenAI and Microsoft were working on plans for a $100 billion data center project that would include an artificial intelligence supercomputer also called "Stargate" set to launch in 2028.
POWER-HUNGRY DATA CENTERS
The announcement on Trump's second day in office follows the rolling back of former President Joe Biden's executive order on AI, that was intended to reduce the risks that AI poses to consumers, workers and national security.
AI requires enormous computing power, pushing demand for specialized data centers that enable tech companies to link thousands of chips together in clusters.
"They have to produce a lot of electricity, and we'll make it possible for them to get that production done very easily at their own plants if they want," Trump said.
As US power consumption rises from AI data centers and the electrification of buildings and transportation, about half of the country is at increased risk of power supply shortfalls in the next decade, the North American Electric Reliability Corporation said in December.
As a candidate in 2016, Trump promised to push a $1 trillion infrastructure bill through Congress but did not. He talked about the topic often during his first term as president from 2017 to 2021, but never delivered on a large investment, and "Infrastructure Week" became a punchline.
Oracle shares were up 7% on initial report of the project earlier in the day. Nvidia, Arm Holdings and Dell shares also rose.
Investment in AI has surged since OpenAI launched ChatGPT in 2022, as companies across sectors have sought to integrate artificial intelligence into their products and services.