If the Chinese seize Taiwan, they will control the chip supply. No one knows if Taiwan will offer stiff resistance to an attempted takeover. It appears Beijing was employing a blockade scenario a a reaction to the Pelosi visit.
Overall, China is Taiwan's most important trading partner, followed by the United States. More than 42% of Taiwan's exports go to China, from where Taiwan gets around 22% of its imports. In 2020, goods and services worth $166 billion were exchanged between the two countries
the problem is china needs the US for trade. already i know first hand that shipping rates for containers have gone from 25-30k in Jan. to current $8,300 and dropping fast. orders for goods from the US are down in china so they are dropping shipping rates as fast as possible.
They know if they withhold necessary chips from the US it could easily spell fewer orders for them so they have to watch what they do all the time.