Taiwan’s economic security ‘key to US’

Taiwan is a trusted partner and an indispensable link in global supply chains, Minister John Deng told Hoover Institution meeting

  • By Yang Cheng-yu and Jonathan Chin / Journalist, with an editor

Taiwan’s economic security is critical to U.S. technology leadership and supply chain resilience, Minister Without Portfolio John Deng (鄧振中), who heads the Executive Yuan’s Office of Trade Negotiations, said yesterday.

Deng made the statement in a keynote address at a Hoover Project meeting on Taiwan in the Indo-Pacific region via teleconference that focused on the geopolitical aspects of the bilateral economic relationship.

The Hoover Institution project supports research and dialogue on Taiwanese democracy and society, and “the central position that Taiwan holds” in the world, according to its website.

Photo courtesy of the Executive Yuan Trade Negotiations Office

The tension in the Taiwan Strait is the result of systemic competition between market-centric democracies and authoritarian regimes that practice state capitalism through a planned economy, Deng said.

Taiwan’s economic prowess and resilience – which is the result of 50 years of peace and stability – has enabled the country to play a crucial role in the global supply chain, he said, adding that collaboration United States with Taiwan would make global trade safer and stronger.

Taipei and Washington have reason to worry about the challenges facing the global economic system, a crisis underscored by recent events at the WTO, he said.

Taiwan’s economy is built on the foundation of fair, free and competitive international trade, which can be made more robust and efficient through closer cooperation between the country and the United States, Deng said.

The fundamental interests of Taiwan and the United States are compatible, as they both depend on the inclusive and rules-based international trade system that currently exists and on ensuring that the next global crisis does not disrupt supply chains, did he declare.

Any damage to Taiwan’s economic security would weaken US leadership in key areas, Deng said, adding that China had achieved partial success in its attempt to create self-sufficient supply chains in crucial sectors, including manufacturing. of semiconductors.

Taiwan is a trusted partner of the United States and its allies, and an indispensable link in global supply chains that must not be broken, he said.

The country’s economic security is part of its national security and affects U.S. national security and interests, as well as the health of the U.S.-led international order, he said.

The Economic Prosperity Partnership Dialogue, the Technology Trade and Investment Collaborative Framework, the Trade and Investment Framework Agreements, and the US-Taiwanese 21st Century Trade Initiative are the main mechanisms of Taiwan-US cooperation, he said.

The last of them is being negotiated, he said, adding that he hopes the talks can be completed by the end of next year.

Signing an agreement based on the Taiwan-US 21st Century Trade Initiative would send a strong message to the international community that the United States can and will support Taiwan with actions that would have political and economic significance, he said. he declared.

A stronger economic partnership would benefit both countries and the international community, he said.

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