Taiwan is trying to escape Beijing’s pressure by strengthening economic and trade ties with the United States. This is clearly demonstrated by the fact that the US overtook China as the main destination for Taiwanese exports in the first quarter of this year for the first time since early 2016 (since comparable data became available).
TSMC, the world’s largest computer chipmaker, is among the Taiwanese companies moving production to the US, Japan and other countries. A Taiwanese semiconductor company also said it would end its 20-year presence in mainland China.
According to official Taiwan data, the island exported $24.6 billion worth of goods to the United States in the first three months. Meanwhile, investment in mainland China fell to the lowest level in two decades, down nearly 40% from last year to $3 billion, according to Taiwan’s Ministry of Economic Affairs. Taiwan’s investment in the US will increase ninefold, reaching $9.6 billion by 2023.
Washington and Taipei signed a trade deal last year and are now negotiating the next phase. US lawmakers have introduced a bill to eliminate double taxation for Taiwanese companies and workers in the US.
“All are motivated by Taiwan’s desire to build deterrence and resilience, all in favor of maintaining the status quo and deterring China from trying to take measures against Taiwan,” he said.
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