Taiwan Urges Stronger Trade Ties With Fellow Democracies, Rejects Economic Dependence on China

Taiwan should deepen trade and economic cooperation with fellow democracies rather than China, President Lai Ching-te said on Tuesday, outlining his administration’s strategy to strengthen collaboration with the United States in key sectors such as artificial intelligence, advanced technology, and critical minerals. His remarks underscore Taiwan’s broader push to secure its economic future amid rising geopolitical competition and growing pressure from Beijing.

Lai spoke following high-level discussions last week between senior Taiwanese and U.S. officials, who met under the U.S.-Taiwan Economic Prosperity Partnership Dialogue. The forum, launched during the first Trump administration, focused on cooperation in artificial intelligence, semiconductors, drones, and other strategic technologies. The U.S. State Department described Taiwan as a “vital partner,” highlighting the island’s importance in global supply chains.

During the talks, both sides signed statements on economic security cooperation and endorsed the Pax Silica Declaration, a U.S.-led initiative aimed at safeguarding AI and semiconductor supply chains. The declaration reflects Washington’s efforts to counter Beijing’s influence as competition intensifies between the two powers, particularly in advanced manufacturing and emerging technologies. China claims Taiwan as its territory, a stance rejected by Taipei.

At a presidential office news conference, Lai praised the dialogue’s outcomes, saying Taiwan is “on the right economic path” and ready to work with democratic partners to drive the next wave of global prosperity. He contrasted this approach with policies pursued by Taiwan’s main opposition party, the Kuomintang (KMT), whose deputy chairman Hsiao Hsu-tsen was in Beijing at the same time for a think-tank forum discussing issues such as AI and tourism.

Lai pointed to slower economic growth under previous KMT governments, which signed major trade agreements with China, compared with stronger growth since the Democratic Progressive Party took office in 2016. He framed the debate as a clear choice between deeper cooperation with the U.S., Japan, and Europe or renewed economic reliance on China.

The KMT said “peaceful development” benefits both sides of the Taiwan Strait, while China continues to label Lai a “separatist” and refuses direct dialogue. Lai reiterated his willingness to engage with Beijing, emphasizing that any talks must be based on equality and mutual respect, and that Taiwan’s future can only be decided by its people.