Taiwan projects its economy “beyond China and the United States”
It's almost a biblical image: several individuals advance into a sea that opens on both sides, with the Chinese flag to the west and the American flag to the east. In the distance, the vast world, represented by stacked containers and, behind, emblematic monuments like the Taj Mahal or the Eiffel Tower. "Beyond China and the United States, a new way out for Taiwan," is the headline in Tien Hsia magazine this week .
The observation is simple: "We are in the configuration of a confrontation between three circles - the United States, China and the rest of the world," analyzes, on the inside page, the economist Chen Po-chih , who advises the Taiwanese presidential office. However, the total GDP of other countries is much higher than that of China and the United States. Taiwan must therefore seek to develop its activities in markets other than these two."
It is also a matter, adds the editorial of the Taiwanese media , of relying less on exports and foreign investment – two pillars of the island's growth model. On the one hand, in the world shaped by Trump, where “customs tariffs start at 10%” and where “export controls and trade sanctions are commonplace,” depending on external demand becomes too risky.
On the other hand, as China becomes ever more aggressive in undermining Taiwan's sovereignty and Washington raises the stakes to ensure the island's security, diversifying sources of industrial investment has become an existential imperative for the Taiwanese economy.
Tien Hsia thus demonstrates how “Taiwanese companies, renowned for their strong adaptability, have all embarked on this new adventure 'outside China and outside the United States'”. And have positioned themselves in seemingly innocuous, but absolutely strategic sectors, like Yunqiang , which has become one of the world leaders in stainless steel tubes, notably thanks to a presence in Turkey.
Similarly, TradeLink has established itself as a key player in electronic cables, with 40% of its revenue generated in Europe. And Rongcheng Telecom has taken the lead in the drone control tablet market. These are all examples that “illustrate the desire of Taiwanese companies to never remain inactive and to take the initiative.”
Ultimately, Tien Hsia begins to dream, Taiwan could, by further reducing its dependence on China and the United States, become “the new brain of the global production chain.” To the point of splitting the sea in two?
