For decades, China has served as Taiwan’s primary trading partner, dominating both its export markets and manufacturing operations. At the same time, China represents a significant geopolitical threat, asserting territorial claims over the self-governing island. Recently, Taiwan’s governing political party has proposed reducing these longstanding economic connections that have fueled its growth.
President Lai Ching-te has advocated for semiconductor companies – the island’s key industry – to sever commercial relationships with China. He suggests that Taiwanese firms, which produce most of the world’s advanced computer chips, should transition to supply chains involving only democratic nations.
This strategy corresponds with U.S. efforts to restrict China’s access to cutting-edge chip technology and highlights Taiwan’s complex position between these two global powers. Adding to this tension, former President Trump has threatened to implement tariffs against Taiwan and numerous other U.S. trade partners.
— news from The New York Times