Global Taiwan Institute: The Four Pillars of US-Taiwan Policy: Continuity or Changes Ahead?
Janessa Chu, US Foreign Policy Director - 2/10/2025
Image Source: iStock Photo
Tension between the US and China over economics, ideology, and security are spurring further US-Taiwan cooperation. While the US and Taiwan share similar values, the status quo remains focused on peace and stability in the Indo-Pacific and Taiwan Strait. As per the “One-China Policy,” the US and Taiwan do not have formal diplomatic relations, instead the Taiwan Relations Act (TRA) has become a cornerstone for US commitments to Taiwan since 1979. Yet, the current US policy approach to Taiwan may not be sustainable in the long term to counter China’s political warfare and economic coercion.
On January 30, 2025, the Global Taiwan Institute (GTI) hosted a public seminar, "The Four Pillars of US-Taiwan Policy: Continuity or Change Ahead?" The event critically examined the TRA approach, focusing on policy shifts under the Trump 2.0 administration. The seminar analyzed four core policy pillars: defense and security, economic relations, international space, and people-to-people ties.
The TRA was originally established to suit US interests in peaceful resolutions by providing defense assistance to Taiwan when the US officially established diplomatic relations with the PRC. Although policies have shifted over years, Taiwan has remained important in supporting the core American interest of maintaining security. Deterrence and resilience are essential in Taiwan's situation as China is militarily destabilizing not only the Taiwan Strait, but targeting other possible avenues of civilian and civil attack. Economically, Taiwan plays a critical role in global supply chains, especially in the high-tech industry of semiconductors such as through the Taiwan Semiconductor Manufacturing Company (TSMC). This aids in building self-sufficient national-defense capabilities through Taiwan’s robust global economic and technological development, distinguishing it from China. Even though Taiwan is facing systematic exclusion from China in international affairs, the efforts of Taiwan in handling the COVID pandemic should not be disregarded. US support for Taiwan’s participation in UN-affiliated organizations is important and shows the high value it places on Taiwan. Taiwan should be recognized as an international leader, both in democracy - where it ranked eighth worldwide and first in Asia, according to the latest World Democracy Index - and as an important contributor to global health, disaster relief, and technology. Lastly, the people-to-people ties between the US and Taiwan have expanded beyond geopolitics into education, cultural exchange, and health diplomacy. Restrictions to the bilateral relationship include restraints on acknowledging Taiwan, PRC pressure on local governments, and limited state-level engagement. Yet, the US and Taiwan have brought education initiatives, like an increase in language programs and scholarships, the establishment of subnational diplomacy with 99 sister-city partnerships, and public health cooperation through the signing of a memorandum of understanding on acknowledgment the acknowledgement issue, which has affected Taiwan’s reputation for supporting public goods warfare.
Entering Trump Administration 2.0, strategic investment in the non-military dimension of the four pillars will be crucial for long-term stability. The US should reaffirm its commitment under the TRA to assist Taiwan in self-defense; encourage Taiwanese high-tech investments and formalize trade agreements in the US; expand Taiwan’s participation in multilateral frameworks with US allies; and increase educational, legislative, and tech-health exchanges between the two countries. Congressional and public support can help maintain stronger relationships in the expansion of recommendations. The US-Taiwan partnership must evolve to counter PRC pressure in order to secure Taiwan’s role as a global democratic and economic powerhouse.