Since the US first announced reciprocal tariffs in early April 2025, President Donald Trump has frequently delivered "surprises" to the global market over nearly four months. Recently, he took to social media to publicly criticize Intel CEO Lip-Bu Tan, demanding his immediate resignation. He also called on companies like Nvidia and AMD to hand over to the US government 15% of their revenue from sales of specific AI chips to China, sparking a new round of market turmoil.
When power meets corporate boardrooms
While we are not in a position to say whether Trump's actions or statements comply with regulations and laws, it is not unprecedented for US authorities to intervene in the operations of domestic and foreign companies under various pretexts. In 2010, the US Department of Justice and a court in San Francisco invoked antitrust laws to imprison senior executives from Au Optronics (AUO) and Chi Mei Optoelectronics (CMO). More recently, sanctions against Huawei and TikTok fall into similar categories.
The erosion of corporate independence
In this latest case, when those in power cite national security and national interest without congressional authorization or legal basis to impose administrative interventions or demand profit returns from companies, they undoubtedly undermine the independence and autonomy of corporate boards of directors, damage shareholder rights, and shake public trust in enterprises.
Navigating the new reality
We are now in a time when geopolitical conflicts and the US-China trade war have evolved into a protracted standoff. Corporate governance principles, once held sacred, become fragile before political power. National security becomes a justification for arbitrary demands on both domestic and foreign governments and corporations. National interest routinely trumps corporate governance, and AI chips, computing power, and semiconductors emerge as core battlegrounds. Business leaders must recognize that their responsibilities now extend beyond commercial decisions: they are required to play new roles in national security issues, and balancing these dual identities will be a critical challenge requiring careful consideration.
Moreover, business owners need to reassess their mindset, moving beyond the pure business logic of diversity and free trade to incorporate national security and interests into their decision-making frameworks. Finding a new equilibrium among sustained profitability, long-term sustainability, and national interest will be an unavoidable lesson in future corporate governance.
Article edited by Jerry Chen
