The 100th day of President Trump’s inauguration in the United States has recently passed, and Taiwanese Foreign Minister Jaushieh Joseph Wu discussed the impact of Trump administration policies on the global stage and Taiwan’s responses at a forum today. Minister Wu emphasized that the U.S. is the place where Taiwan will strive to compete in the World Cup. He expressed the hope to establish a Taiwan-U.S. joint fleet, achieve economic advancement without sundown, and maintain a competitive edge in future competitions.
In a forum titled “Taiwan, the United States, ASEAN, and the Indo-Pacific Cooperation Fleet: AI and Semiconductor Industry Outlook” hosted by the Southeast Asia and South Asia Association of Taiwan today, Minister Wu highlighted that one of the main aims of Trump’s new policy is to utilize tariffs as both a goal and a means to strengthen national security, achieve trade balance, encourage the reshoring of manufacturing, and promote the industrial revitalization of the U.S. Trump has affirmed that tariffs serve as a source of revenue to protect national interests and counter unfair practices by other countries (particularly China).
Minister Wu pointed out that China has been utilizing American capital for military and intelligence development, engaging in malevolent cyber activities against the U.S., and expanding its military-industrial complex through a strategy of military-civil fusion. China’s military expansion and development in military industries (such as shipbuilding) pose a security threat to the U.S. He further discussed how globalization has facilitated China’s rise, especially after its accession to the World Trade Organization (WTO), enabling China to engage in unfair trade practices with the U.S. through subsidies and other means. Minister Wu highlighted that China has not fulfilled the trade agreements made during Trump’s first term, leading the Trump administration to reconsider granting China most-favored-nation status, consequently leading to industrial losses in the U.S. and modernization of China’s military.
Moreover, Minister Wu emphasized that China directs its capital investments to acquire sensitive American technological advancements, manipulating U.S. assets and obtaining cutting-edge technology, intellectual property, and strategic industries. The U.S. will restrict China’s access to American technology through investment, trade, and export control measures. He acknowledged the profound impact of technological advancements, particularly in the semiconductor and AI sectors, on global competitiveness. Taiwan plays a significant role in areas such as AI chips and servers.
Minister Wu stressed that Taiwan was among the first countries to engage in tariff negotiations with the U.S., even if it was not publicized widely. Recently, the government has responded to the Trump administration in three waves: firstly, with Taiwan Semiconductor Manufacturing Company (TSMC) expanding investments in the U.S., which received positive feedback from Trump. Secondly, Taiwan’s procurement and investment in Alaskan natural gas have also received recognition from the administration. The third wave involves cooperation in AI chip technology, with Taiwan aligning itself with the U.S. to become part of the “winner’s circle,” contributing to both U.S. and Taiwan’s greatness.
Furthermore, Minister Wu mentioned that China has its own alliances, whether referred to as the “Axis of Evil” or “Red Supply Chain.” When facing challenges from China, Taiwan needs to enhance its strength by leveraging its geographical advantage and human resources to improve its position in the global supply chain. He emphasized that Taiwan’s industrial transformation should not solely focus on cost reduction but should also aim to increase value. Taiwan should collaborate with the U.S. in technology, funding, and talent to establish a “Taiwan-U.S. Joint Fleet,” employing a mutual investment model between Taiwan investing in the U.S. and vice versa. Given the vast U.S. market, it is where Taiwan will compete in the World Cup.
Minister Wu further suggested that Taiwan should forge partnerships with American enterprises to jointly strive for prosperity, aiming to attain economic advancement without sundown. He called for the establishment of supporting ecosystems: creating clusters of Taiwanese factories investing in the U.S., encouraging corporate entities and public associations (such as research institutes, the Institute for Information Industry, and trade associations) to participate, building up the supporting ecosystem, and initiating government-to-government (G2G) and government-to-business (G2B) Triple Helix (industry-academia-research integration) programs for mutual investment in cutting-edge technologies like AI.
Minister Wu stated that the government could promote Taiwan-U.S. cooperation in technological education, encourage technology firms to establish bases, establish mechanisms for training technology-oriented personnel, and facilitate American students’ participation in Taiwan’s educational system. In terms of capital market cooperation, the government could guide companies to issue American Depository Receipts (ADRs) and Taiwan Depository Receipts (TDRs) to provide funding channels for Taiwanese supply chains investing in the U.S.
Additionally, he highlighted that Taiwan, in addition to forming a non-red supply chain for AI semiconductor chips with the U.S., Japan, and Europe, could begin by penetrating the AI chip and semiconductor industry chain through chip packaging and testing due to the shared security threats from China faced by Taiwan and the Philippines, both situated along the first island chain, necessitating protection from the U.S. However, he emphasized that a security alliance without a solid economic foundation might lack resilience. Taiwan should strengthen the Taiwan-Philippines Economic Corridor by starting from chip packaging and testing, entering the AI chip and semiconductor industry chain and enhancing economic ties. Minister Wu emphasized that different strategic approaches are required for collaborations with various countries.