The Hindu: Published on 5th March 2025:
Why in News?
On February 16, the U.S. State Department updated its factsheet on Taiwan, removing the phrase “we do not support Taiwan independence” and adding that the U.S. will support Taiwan’s membership in international organizations where applicable.
This move was welcomed by Taiwan but received strong opposition from China, which called it a "serious regression" in U.S. policy and an erroneous message to pro-independence forces in Taiwan.
At the same time, Chinese military activity around Taiwan Strait has been rising, with regular military drills, cyber-attacks, and spy balloons.
Donald Trump’s remarks on Taiwan’s security and economic policies have added uncertainty to U.S.-Taiwan-China relations.
Current Status of U.S.-Taiwan Relations-
The U.S. Taiwan Policy: Taiwan Relations Act (TRA), 1979
The TRA (1979) governs U.S. policy on Taiwan and states that the U.S. will:
- Preserve and promote close relations with Taiwan.
- Provide Taiwan with defensive arms to maintain security.
- This has resulted in regular U.S. arms sales to Taiwan, which China strongly opposes.
- Taiwan is currently negotiating a $7-10 billion arms deal with the U.S.
Trump’s Position on Taiwan
Mixed signals on Taiwan’s security:
Previous Trump administration approved $10 billion in arms deals and passed pro-Taiwan laws (Taipei Act, Taiwan Travel Act, Taiwan Assurance Act).
Recently, Trump hinted that Taiwan is “too far” for U.S. military help if China attacks.
Taiwan’s Semiconductor Industry & U.S. Relations:
- Trump accused Taiwan of “stealing” the U.S. semiconductor industry.
- Taiwan’s TSMC (Taiwan Semiconductor Manufacturing Company) is investing $100 billion in U.S. chip manufacturing, increasing total investment to $165 billion.
- Demand for Taiwan to Pay for U.S. Protection:
- Trump suggested Taiwan should increase its defense spending and contribute financially to U.S. security assistance.
- Taiwan has already raised its defense budget to 2.5% of its GDP.
Rising Chinese Aggression Against Taiwan
- China views Taiwan as its own territory and opposes any form of international recognition.
- Since 2016, under Taiwan’s pro-independence Democratic Progressive Party (DPP) government, China has increased diplomatic and military pressure:
- Taiwan has lost diplomatic allies to China (only 12 countries now have official ties with Taiwan).
Chinese military exercises across the Taiwan Strait have intensified, including:
Spy balloons & cyber-attacks
Warplane incursions into Taiwan’s Air Defense Zone
2024 Taiwanese elections saw increased Chinese military pressure to deter support for Taiwan’s independence.
Strategic Implications for U.S., China, and Taiwan
For China:
Xi Jinping sees Taiwan’s reunification as part of China’s national rejuvenation.
The rise in U.S.-Taiwan relations challenges China’s ambitions.
For the U.S.:
Taiwan is crucial as a semiconductor hub and a major arms buyer for U.S. defense companies.
Conflicting Trump statements create uncertainty in U.S. security commitments.
For Taiwan:
Taiwan is facing growing military threats from China while trying to strengthen ties with the U.S.
Taiwan’s semiconductor industry plays a key role in its strategic importance.
Conclusion:
U.S.-Taiwan relations are at a critical point, with China increasing pressure and Trump’s unpredictability adding uncertainty. The future depends on how the U.S. balances Taiwan’s security, economic cooperation, and relations with China.
