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Strategic system

Taiwan and the Strait

A contested island, a busy sea lane and the centre of the chip trade.

The basics

Taiwan is a self-governed island of about 23 million people off China's south-east coast. Beijing claims it as part of China and has not ruled out using force to unify it. The United States has no formal diplomatic ties with Taipei but keeps unofficial relations and sells it weapons under the Taiwan Relations Act.

The Taiwan Strait, about 130 km wide at its narrowest, is one of the busiest shipping lanes in the world. Taiwan is also home to the factories that make most of the world's most advanced semiconductors.

Why it matters from India

A crisis here would disrupt chip and electronics supply, and shipping and trade through East Asia, both of which Indian industry depends on.

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