Back in 2018, when the U.S. first launched its trade policy against China, the focus was on labor-intensive industries: electronics, textiles, footwear, and furniture. Hit with a 25% tariff, Chinese manufacturers and American importers responded by absorbing the added costs, splitting them roughly 15%:10% to maintain trade volumes and price stability. Given that average profit margins in these sectors ranged from 10% to 20%, most companies could still operate profitably. However, with the U.S. now imposing much broader “reciprocal tariffs”, even the initial 34% duty has proven difficult to absorb for Chinese manufacturers. As of April 2, cumulative tariffs from the first round of the trade war have already reached 45%, putting enormous pressure on China’s export sector.[李亦晴1]  Heading into the second quarter of 2025, global demand had already cooled, with downward revisions to corporate order books. A decrease in global demand and downward corporate order revisions collided with new tariff shocks. Within a week of the announcement, global firms suspended shipments. The U.S. later reduced the rate back to 10%, offering a 90-day reprieve. However, by then, supply chains were already in flux. Two diverging strategies have emerged: downstream manufacturers and end-product suppliers have rushed to stockpile inventory, hoping to lock in lower tariff costs before rates spike again. Upstream players and those with longer production lead times have instead seen order cancellations as customers move to cut risk. The resulting shockwaves are being felt across entire supply chains. If tariffs continue rising beyond what the economy can bear, a complete Chinese withdrawal from the U.S. market is on the table. This would translate to an exit that could erase an estimated 3% of China’s GDP and bring growth to a near standstill.[1] Given the deep involvement of firms with Taiwanese investment in China’s export economy, the outcome of this trade conflict holds enormous implications for Taiwanese industries. [1] While Beijing still claims a 5% growth rate, independent data triangulation suggests the real figure is closer to 3.5%.

China’s Two Sessions, comprising the National People’s Congress and the Chinese People’s Political Consultative Conference, have long been a bellwether for the nation’s strategic priorities. These meetings allow domestic and foreign investors to gain insights into Beijing’s evolving policy landscape and market environment. The 2025 Two Sessions are particularly pivotal as they mark not only the concluding year of the ‘Made in China 2025’ initiative and the 14th Five-Year Plan but also serve as a transitional period leading into the formulation of the 15th Five-Year Plan. Given its ambitious technological agenda, China aims to achieve “technological autonomy” while engaging in “global co-opetition” against escalating global geopolitical tensions.

Before Donald Trump assumed the presidency, public discourse largely focused on his tariff policies, which aimed to reduce America's trade deficit while pressuring trade partners on issues such as drug trafficking and illegal immigration. However, beyond tariffs, Trump’s actions in the tech sector proved equally significant. His administration’s policies may have profound and far-reaching effects on the competitive dynamics of major global technology players.

  AI is steering the wheel toward a new era of autonomous vehicles (AVs) as the global automotive industry pivots towards Connected, Autonomous, Shared, and Electrified (CASE) vehicles, and with a heightened focus on achieving net-zero carbon emissions. Reflecting this momentum, private investment in automotive AI surged by USD 2.66 billion between 2017 and 2023.Yet, this rapid growth has also placed autonomous vehicle (AV) development at the heart of an intensifying U.S.-China technology rivalry—one shaped by advanced AI capabilities, high-performance semiconductors, and massive data requirements. As a result, the AV sector has become a new strategic battleground, with stakeholders on both sides racing to secure leadership in the next era of mobility innovation. 

Computing power drives the engine of today's digital economy, transforming global economic activity through its unparalleled ability to process data efficiently. As computing capabilities have advanced, they've ushered in a new era of innovation, working in tandem with groundbreaking developments in the Internet, machine learning, and artificial intelligence. This technological synergy has not only reshaped business models and consumer behaviors but has also fundamentally altered our perception of services, information, and goods. The result is a digital landscape that continues to evolve, pushing the boundaries of what's possible in our interconnected world.

Since 2022, by implementing export controls, the United States has been applying increasing pressure on China’s technological pursuits, weaponizing its dominance in advanced AI chips to limit Beijing's military and economic advancement. Washington’s latest salvo? Even stricter controls on chips, equipment, and talent, all under the banner of "national security." Faced with escalating restrictions, Chinese firms have turned to the cloud, by tapping into domestic and U.S.-based services to access high-performance computing power and keep their AI ambitions alive. This adaptation has allowed Chinese firms to offset some of the sanctions’ intended effects, adding complexity to the ongoing U.S.-China tech rivalry.

 The concept of ‘sovereignty’in the semiconductor supply chain has sparked significant debate.This article will first explain the semiconductor supply chain and then explore why ‘sovereignty,’ traditionally a political term, is applied in this commercial context. Moreover, it addresses the role of Taiwan in the current technological battle between the US and China emphasizing the importance of robust technology manufacturing in this rivalry.

The Indo-Pacific region is now central to global strategy, shifting from merely containing China to harnessing this area’s economic potential. Taiwan, despite being a dynamic player in this region, often receives limited attention in foreign policy discussions focused on government-to-government interactions. This article seeks to highlight Taiwan's critical role beyond traditional narratives. Taiwan’s advanced economy, particularly in high-tech industries, can support Europe's efforts to diversify supply chains and enhance digital sovereignty. By recognizing Taiwan as a valuable economic partner, Europe can deepen its engagement in the Indo-Pacific strategy.

The U.S. is reportedly investigating whether TSMC is supplying AI or smartphone chips to Huawei, which is barred from using American technology. While TSMC has denied the claims and halted shipments to some suspected firms, the U.S. is expected to further intensify its measures against China. As the EU, Japan, and South Korea prioritize economic security, this op-ed calls on Taiwan’s industry, government, and academia to proactively gather insights, anticipate risks, and develop strategic responses.

Economic security has rapidly evolved from a niche policy debate into a cornerstone of national strategy. Nowhere is this more evident than in the Indo-Pacific, where Taiwan — critical to global supply chains — is at the center of this complex discourse. Economic security and technological geopolitics has placed supply chain resilience and the Indo-Pacific strategy at the forefront of international discussions.