Taiwan an indispensable partner amid global supply chain shift: Expert

Taipei, April 7 (CNA) Taiwan has become an indispensable partner in global supply chains as U.S. tariffs on China accelerate a major economic realignment, an American public affairs expert said Tuesday.

Speaking at a Taiwan-U.S. business forum in Taipei, Arthur Estopinan said global trade rules are being "rewritten," with policy decisions, corporate strategies and capital flows reshaping supply chains at an unprecedented pace.

"We're living through a structural shift in the global economy, and the U.S.-Taiwan relationship is no longer defined by diplomacy or security. It is defined by capital, technology and shared economic strategy," he said.

He said that after U.S. President Donald Trump returned to office in 2025 and imposed tariffs exceeding 100 percent on some Chinese goods, the move effectively froze much of the bilateral trade, prompting companies to rapidly reconfigure supply chains.

Against that backdrop, U.S. imports from Taiwan surged, with Taiwan's exports to the United States rising nearly 60 percent in one year, he said.

Estopinan noted that Taiwan produces more than 90 percent of the world's most advanced semiconductors, making it critical to industries such as artificial intelligence, defense and high-tech manufacturing.

He added that Taiwan firms have expanded production across North America, pairing mass manufacturing in Mexico with high-end operations in the U.S.

Citing Taiwan Semiconductor Manufacturing Co.'s US$165 billion investment in Arizona, Estopinan said the move signals where global production and long-term economic alignment are heading.

He also pointed to bipartisan support in Washington for strengthening economic ties with Taiwan, including efforts to reduce double taxation and encourage investment.

According to Estopinan, Taiwan differs from countries such as Vietnam and India by providing core technologies rather than competing as a low-cost assembly base.