Jiann-Chyuan Wang, Vice President of the Chung-Hua Institution for Economic Research (CIER), delivered a keynote address at the 2nd meeting of the Taiwan Bio Industry Organization’s 18th International Conference & Exhibition on October 14. In his speech, Vice President Wang focused on “Taiwan’s Economic and Trade Opportunities and Challenges Amid Tariff and Exchange Rate Impacts” to highlight the complexities and potential pathways for growth in the current economic landscape. His presentation analyzed shifts in the U.S. political and economic landscape and their implications for the global trade order, while proposing strategic directions for Taiwan’s response.
Escalating Tariff Competition Requires Strategic Leverage to Maintain Advantage
President Trump’s “reciprocal tariff” policy represents more than a simple adjustment to address trade imbalances. Rather, it employs tariffs as a negotiating tool to balance U.S. fiscal and debt concerns while compelling concessions from other nations. In its interactions with the United States, Taiwan must ground negotiations in concrete benefits and strategic considerations to maintain competitiveness in an uncertain international environment.
Global Industrial Chain Restructuring: The Third Investment Wave Approaches
Vice President Wang noted that after two prior investment waves—the “Go West to China” movement in the 1990s and the “New Southbound Policy” introduced in 2018—Taiwan is approaching a third wave of investment momentum. If Taiwan can successfully guide key industrial chains in semiconductors, pharmaceuticals, and food production to extend into the United States to create an “extended version of science parks,” it can capitalize on market opportunities while elevating Taiwan’s strategic position in global supply chains. As global economic and trade conditions rapidly transform, Taiwan must adopt forward-looking strategies and strengthen industrial linkages. This shift from passive responses to proactive initiatives will help build long-term economic resilience and ensure sustained international competitive advantage.
Author: CIER Editorial Team
Date: October 15, 2025