While its unofficial ties with major democracies are paramount, Taiwan still values its remaining formal diplomatic relationships because they affirm its sovereignty. In July, Taiwan rolled out the red carpet for Paraguayan President-elect Santiago Peña, who visited the island democracy to reaffirm ties following his re-election. President Tsai Ing-wen and Vice President Lai Ching-te jointly…
Participation in international trade agreements, whether bilateral or multilateral, would benefit Taiwan’s economy and reduce its excessive dependency on China. But entry into some pacts is more likely to be feasible than others. In mid-April, China announced it would start investigating whether nearly 2,500 Taiwan export products conform to its fair-trade rules. The products to…
Market woes in China and geopolitical tensions have caused Taiwanese banks and other financial institutions to gradually draw down their cross-Strait exposure. In the first half of the 2010s, Taiwanese financial institutions viewed China as the most promising international market. They had few opportunities to expand in their saturated home market and hoped to boost…
In the wake of significant losses incurred by users of the collapsed FTX exchange, questions arise as to whether minimal regulation focused on preventing money laundering is still sufficient. Taiwan’s financial services sector is known for its conservatism, and its regulators for their caution. These factors usually help reduce financial risk and protect investors. But…
In light of rising tensions between China and the free world, resilience is becoming paramount, while a bifurcation of supply chains seems inevitable. Eyebrows were raised in December when Taiwan Semiconductor Manufacturing Co. (TSMC) founder Morris Chang, speaking at the opening ceremony of the chipmaking giant’s Arizona fab, remarked that “free trade is almost dead…
Taiwan continues to play a leading role in Apple’s supply chain as the U.S. tech giant works to reduce overreliance on China manufacturing. Apple has long relied on manufacturing facilities in China operated by Taiwan’s Hon Hai Precision Industry Co. – better known as Foxconn – to produce the lion’s share of its flagship electronic…
During a visit to Taiwan in July, former U.S. Secretary of Defense Mark Esper urged the island to extend its mandatory military conscription from four months to at least one year, citing the rising threat from China. The recommendation did not receive enthusiastic support in Taiwan, with scholars raising concerns about cost, insufficient manpower, and…
Tokyo could play a decisive role in deterring or defeating a Chinese attack on Taiwan, but questions remain about its potential involvement. China’s increasing aggression toward Taiwan has alarmed Japanese policymakers and prompted a rethink in Tokyo about Japan’s approach to cross-Strait security. Though constrained in some regards by its pacifist constitution, Japan is taking…
The risk of a Chinese invasion remains low, but China’s gray-zone provocations are likely to test Taiwan’s mettle. Tensions in the Taiwan Strait reached new levels after U.S. Speaker of the House Nancy Pelosi visited Taipei in August. The massive live-fire drills by China that followed the visit have intensified concerns about Taiwan’s security, which…
Beijing is flooding popular social media channels with malicious content aimed at weakening support for Taiwan’s sovereignty and undermining its most important bilateral relationships. “The People’s Liberation Army has taken control of Kinmen! With the conditions of the exchange exposed, the United States is furious!” say the Chinese characters on the thumbnail image of a…
