Da-Nien Liu, Director of The Regional Development Study Center at the Chung-Hua Institution for Economic Research (CIER), stated that to prevent the international “Taiwan+1” strategy from devolving into supply chain “de-Taiwanization,” the overarching priority must be to fully maintain stability in cross-strait relations. Furthermore, regarding U.S. requests for Taiwanese semiconductor firms to invest in America, Taiwan should propose “reciprocal investment.” By encouraging American firms to invest in Taiwan, the two sides can foster two-way capital flows and ensure that Taiwan’s industrial migration is not a one-way street.
Director Liu noted that “Taiwan+1” signifies Taiwan’s continued role as a critical node in the supply chain, a concept fundamentally distinct from the supply chain de-Sinicization of the “China+1” strategy. He explained that “China+1” originally emerged during the COVID-19 pandemic and the U.S.-China trade war, when it became apparent that global supply chains were overly concentrated in China, geographically overextended, and subjected to inflated costs due to U.S. tariffs. This prompted companies to seek production bases outside of China. However, as the U.S.-China trade and tech wars escalated, the U.S. sought to decouple from China not only in manufacturing but also in technology. Consequently, “China+1” ultimately morphed into a strategy of supply chain de-Sinicization.
As for “Taiwan+1,” Director Liu’s understanding is that Taiwan retains its vital position in the global supply chain. He did not shy away from the reality that elevated cross-strait tensions over the past two to three years have led many international firms to lump “Taiwan+1” into the same conceptual basket of supply chain de-risking as “China+1.”
What concerns Director Liu is not just that international media frequently depict Taiwan as the world’s most dangerous flashpoint. It is also the rhetoric from U.S. officials—such as Treasury Secretary Scott Bessent’s blunt assertion in January that concentrating 97% of advanced chip production in Taiwan constitutes an economic disaster—that exemplifies the conflation of “Taiwan+1” with the “China+1” de-Sinicization narrative. Director Liu urged the government to heed the warning signs of this detrimental link gaining traction among multinational corporations.
Author: CIER Editorial Team
Date: March 10, 2026
Original Source: China Times (March 10, 2026). Da-Nien Liu: Maintaining cross-strait stability is the top priority. China Times. https://www.chinatimes.com/newspapers/20260310000516-260110