TAIPEI (TVBS News) — Taiwan may feel an implicit urge to boost investments in the manufacturing and national defense sectors under President-elect Donald Trump's new administration, Ambassador Kurt Tong, managing partner at The Asia Group, said on Thursday (Nov. 14).
The former U.S. ambassador for Asia-Pacific Economic Cooperation (APEC) anticipates that Trump's administration will scrutinize Taiwan's defense expenditure, potentially urging investment in advanced weapon systems. This transactional approach could also prompt Taiwan to increase manufacturing investment in the U.S., particularly in the semiconductor industry, he told TVBS News.
Ambassador Tong advised Taiwan to strengthen connections in artificial intelligence (AI) and digital services sectors, fostering deeper integration and cross-investments with the U.S. U.S. tariffs are expected to be the opening move in trade tensions with China, with the PRC likely to retaliate through tariffs, export controls, or heightened tensions in the South China Sea.
The potential for negotiations between Trump and Chinese President Xi Jinping could center on trade and economic issues, requiring readiness for a Chinese response to U.S. pressure, he continued. While China is perhaps not actively preparing for an invasion, he stressed the need for vigilance to balance panic and complacency regarding China's intentions toward Taiwan.