Taiwan President-Elect Signals Intent to Join U.S.-Led Indo-Pacific Economic Framework

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Taiwan’s President-elect, Lai Ching-te, expressed his inclination on Wednesday to have Taipei become a part of the U.S.-led Indo-Pacific Economic Framework, citing Taiwan’s significant role in the global economy. Although excluded from the framework, Lai emphasized Taiwan’s key position and the alignment of existing structures, such as the U.S.-Taiwan Initiative on 21st-Century Trade, with the Indo-Pacific Economic Framework’s core concerns.

The Biden administration excluded Taiwan from the Indo-Pacific Economic Framework in 2022, emphasizing countermeasures against what it perceives as Beijing’s escalating economic and military coercion. However, subsequent initiatives like the U.S.-Taiwan Economic Prosperity Partnership Dialogue and Technology Trade and Investment Collaboration Framework were established.

Lai, set to assume the presidency on May 20, underscored the hope that the existing structures could serve as a foundation for Taiwan’s eventual participation in the Indo-Pacific Economic Framework. Taiwan, renowned for its semiconductor production, including being home to TSMC, the world’s largest contract chipmaker, holds strategic importance in the global supply chain.

In a related development, the Taiwanese Foreign Ministry announced a visit by U.S. lawmakers Mario Diaz-Balart and Ami Bera of the Congressional Taiwan Caucus. The lawmakers are expected to meet both President-elect Lai and outgoing President Tsai Ing-wen.

While Taiwan had previously sought to join the Indo-Pacific Economic Framework, negotiations in November did not yield an agreement in time for the Asia Pacific Economic Cooperation summit. China, claiming Taiwan as its territory, has consistently opposed U.S. initiatives in the Indo-Pacific, characterizing them as exclusive clubs. If Taiwan were to participate, it could escalate tensions between the U.S. and China, with Beijing expressing displeasure over Washington’s support for the island.