The United States and its allies are taking measures to protect their interests and prevent Chinese tech companies from dominating the global semiconductor market.
The future of these negotiations likely hinges on the priorities and approach of the next U.S. administration, potentially leading to a period of reassessment and realignment in U.S.-Taiwan economic relations.
Taiwan is deftly navigating the global arena like a player of “go,” leveraging its technological prowess to embed itself firmly within the global supply chain, rather than passively awaiting exclusion from international affairs.
Though the ongoing process of chip supply chain diversification seems more like an opportunity than a challenge, it is crucial to Taiwan’s technological edge—which is linked to its future security against the PRC—in contrast to the economic and market-related concerns of peers.
It’s possible that industrial policy will shift to something else in the next few years, but whatever it is, the US should look deeper into the systemic origins of its manufacturing malaise.
Despite Chinese pressure, Taiwan and Vietnam have built a strong, increasingly dynamic economic partnership, which is likely to continue to grow in the coming years.