U.S.-Taiwan Initiative on 21st Century Trade and Asia PacificIndustrial Chain Restructuring1 US dominance, Taiwan’s Complianceand China’s Response

Abstract

The first batch of agreements under the “U.S.-Taiwan Initiative on 21st Century Trade” will come into effect in December 2024, including five topics: “trade facilitation”, “good legal practices”, “internal regulations in the service industry”, “anti-corruption”, and “small and medium-sized enterprises”. The seven topics that will be negotiated in the future include labor, environment, agriculture, digital trade, etc. The Chinese government has always adhered to the One China principle, and Taiwan is an inseparable part of China. However,Due to the global trade chaos caused by Trump’s “reciprocal tariffs” as well as the huge uncertainty of the results of “reciprocal tariffs” between the United States and other countries in 2025, combined with his governing style, the shortcomings
of the initiative, and the need for geopolitical games and alternative solutions, the initiative may move towards two extremes: being substantially abandoned or passively returning. If it can be retained, the U.S.-Taiwan Initiative on 21st Century Trade, as a framework for economic and trade cooperation between the US and Taiwan, will also deepen bilateral economic relations and reconstruct the Asia Pacific industrial chain. Therefore, China’s response is also crucial, and attention should be paid to both, with a focus on quickly achieving equal openness and establishing a community with a shared future for mankind, and working together with Taiwan compatriots to promote the great rejuvenation of the Chinese nation..