Article:
The Ramifications of the US-China Trade Conflict on Taiwan and the World

On May 21, 2025, The Global Taiwan Institute published “The Ramifications of the US-China Trade Conflict on Taiwan and the World,” an article written by the Council’s spring 2025 intern Annie Tseng. Annie is a senior at Georgetown University and served as a Corporate Affairs/Asian Affairs intern at the US-Taiwan Business Council.

In her article, Annie examined the evolution of the US-China trade issues, how changing global alliances affected a new trade order, and examined Taiwan’s role in the evolving trade conflict. She said that US-China economic conflict has reshaped global trade, driving shifting alliances, supply chain reconfigurations, and intensified competition, particularly in semiconductors. Taiwan, at the center of these changes, has strengthened its economic ties with the United States but confronts trade imbalances, geopolitical risks, and evolving US policies, requiring strategic adaptation to ensure long-term stability.

She concluded that:

As Taiwan continues to navigate its economic relationship with the United States, it must proactively strengthen trade cooperation, enhance supply chain resilience, and solidify strategic partnerships. The US-Taiwan Initiative on 21^st-Century Trade serves as a framework for improving regulatory alignment, strengthening trade facilitation, and enhancing labor and environmental standards. Meanwhile, the United States-Taiwan Expedited Double-Tax Relief Act, which remains under consideration in the US Congress, presents an opportunity for Taiwan to advocate for its full enactment and push for broader tax relief measures to encourage cross-border investment.

As the United States reinforces its Indo-Pacific alliances, Taiwan is well-positioned to leverage its economic and technological strengths to secure more favorable trade agreements and attract long-term investment. To maintain its competitive edge, Taiwan must expand its export markets, accelerate innovation, and reinforce its leadership in semiconductors and high-tech industries. With global supply chains shifting and geopolitical tensions rising, Taiwan must strategically leverage its economic significance to secure long-term trade stability and enhanced competitiveness.

Source: Global Taiwan Institute