ABSTRACT
Tsai Ing-wen has faced, and continues to face in her second term, challenges and opportunities in international economic relations amid slowing growth of world trade, and Taiwan’s Beijing-driven exclusion from parts of the international economic order that affect prospects for meeting Taiwan’s expectations for economic progress. Sound economic statecraft can navigate Taiwan’s difficult international situation to further Taiwan’s economic development, addressing long-term issues and taking advantage of opportunities in Taiwan’s economic role in Asia-Pacific regional development. Under Tsai, Taiwan must: manage its role in changing global supply chains, especially amid worsening U.S-China relations and the COVID-19 pandemic; pursue membership in new mega-regional trade blocs to diversify trade and investment flows and mitigate asymmetric dependence on the Chinese market; and undertake a “new southbound policy” to integrate with economies in South and Southeast Asia.
