South Africa’s recent decision to downgrade Taiwan’s representative offices has sparked a diplomatic row, with Taiwan retaliating by curbing chip exports to the country. This move has significant implications for South Africa’s industrial and digital development, as Taiwan is a global leader in semiconductor technology, a critical component in modern electronics.

On September 23, 2025, Taiwan announced the export restrictions in response to South Africa’s decision to rename Taiwan’s representative offices in Pretoria and Cape Town to the Taipei Commercial Office. The renaming was formalized in an official notice issued by the South African government on July 21, 2025, following a delegation visit to China led by Deputy President Paul Mashatile. The notice, which was backdated to April 1, was reportedly made without consultation with Taiwanese officials.

The South African government’s actions are seen as an attempt to align with China’s “One-China” policy, which considers Taiwan a part of China. However, this move has put South Africa at odds with Taiwan, a key player in the global technology industry. Taiwan’s semiconductor industry is a major supplier of chips used in a wide range of products, from smartphones to laptops and cars.

The export restrictions imposed by Taiwan are likely to have a significant impact on South Africa’s technology sector, which relies heavily on imported components. The move may also hinder South Africa’s efforts to develop its own digital economy, as access to critical technology components is essential for innovation and growth.

The diplomatic row between South Africa and Taiwan highlights the complexities of international relations in the technology era. As countries increasingly rely on technology to drive economic growth, diplomatic decisions can have far-reaching consequences for industries and economies. The situation is likely to be closely watched by other countries, particularly those with significant technology interests.