Description: Taiwanese President William Lai Ching – te stated that first round of US – Taiwan trade talks were highly productive as the country is seeking a tariff free trade agreement with the US. Lai Ching also stated that negotiations for a potential $100 billion investment in a chip manufacturing factory in the US were also on the table, as Taiwan aims at launching their products on a global scale reducing economic dependence with China. The President concluded his statement by saying that Taiwan already pursued similar bilateral trade agreements with Canada and the UK as it aimed at joining the Comprehensive and Progressive Agreement for Transpacific Partnership (CPTPP).
Impact: Taiwan is one of the first countries to engage in direct trade talks with the US which were made public by President Lai Ching. The immediate prioritization of normalizing ties and balancing out trade surpluses with the US highlights Taiwan’s precarious position in the Indo – Pacific and their desperate dependence on US defense and military assets in countering incursions from China. Taiwan’s manufacturing prospects could complement the US ambitions in acquiring a stable and reliable partner in the chip manufacturing industry as the global pursuit of rare earth metals continues. An agreement could be expected soon, as the US already announced their intention to prioritize the Indo – Pacific region as a key strategic focal point in the future.