Hostile Takeovers

(Hostile Takeovers)

In the corporate world, a hostile takeover takes place when one concern makes an effort to buy out another and, if the former acquires a controlling interest in the latter stock, even if the buyout is neither sought nor desired by current management, if the voting power in the acquiring company is sufficient, then, assuming that the rest of the board approves the transfer, then what emerged is a new concern that been assumed in a hostile takeover.

The Peoples' Republic of China is looking to take over the Republic of China probably by hostile means. It clearly is in possession of the required stock and will defiantly demand a change in management if the transaction goes through. The "board," in this case, is Germany and it is Beijing's admonition to Berlin to "support" whatever Big China has planned for (Big Trouble) n Little China. Paris has also indicated it will stand on its own where Intra-Chinese relations are involved.

Now no one believes that Taiwan can be taken without a shot fired but the island can be isolated. Taiwan is like a fortress where a hostile power is eying the ramparts. Food and water can be in short supply. Caesar and the siege of Alesia is another example and there are undoubtedly others. In order for this all but inevitable outcome to not transpire would be to re-assess the current situation. Namely to scrap the One China Policy.

Taiwan has been de facto independent since the end of the Chinese Civil War. In order to keep Peking and then Beijing placated, there was never any official recognition of Taiwan was a sovereign state. That being said, one must say that the One China has outlived its usefulness. The litany of Chinese aggressions, its continual violations of technology transfer and the duplitous behavior regarding the release of covid, not to mention supply chain issues that be laid at China's responsibility.

Some 90% of the world's microchips are Formosan made and until that situation can be rectified, Taiwan represents a vital interest. Millions of dollars in arms have yet to be disbursed to the island nation. The Chinese might be looking to take Taiwan but it might need to see who the stockholders are now.