The Taiwan Affairs Office of China's State Council has sharply criticized recent U.S. trade negotiations with the Taiwan region, calling them a form of economic coercion. This comes after the U.S. Department of Commerce announced on January 20 that Taiwan-based semiconductor and technology companies will invest $250 billion in U.S. production capacity, with Taiwan authorities offering matching credit guarantees.
In exchange, the U.S. agreed to reduce tariffs on select Taiwan exports from 20% to 15%, framing the arrangement as reciprocal. However, the Taiwan Affairs Office argues this constitutes 'trade bullying' designed to pressure Taiwan into diverting critical industrial resources abroad. 'This is not mutual benefit—it's economic hostage-taking that endangers Taiwan's core industries,' a spokesperson stated.
Analysts note the deal could strain cross-strait ties while raising concerns about U.S. influence over global semiconductor supply chains. Business leaders in the Taiwan region remain divided, with some welcoming tariff relief and others warning of overreliance on overseas investments.
