Taiwan’s economy showed signs of recovery in late 2024, with GDP growth rebounding to 1.8% YoY, driven by steady private consumption and expansion into green technology. However, challenges persist in 2025, as consumer confidence dips amid global uncertainties and new U.S. trade policies, prompting Taiwan’s government to implement measures supporting affected businesses.

The number of U.S. state offices in Taiwan has quadrupled in recent years, with 24 states now actively pursuing investment and trade opportunities in Taiwan. This surge is driven by Taiwan’s growing role in foreign direct investment, as seen with TSMC’s massive project in Arizona, and the need for U.S. states to attract Taiwanese companies seeking to diversify beyond the Chinese market.