EAST ASIA : AN INTERNATIONAL QUARTERLY, cilt.43, sa.5, 2025 (ESCI, Scopus)
Amid sustained US-PRC rivalry and Taiwan’s semiconductor centrality, the durability
of Taiwan’s trade leverage merits direct assessment. We assess whether
US security signaling, together with deep PRC interdependence, enables Taiwan to
sustain trade leverage despite limited diplomatic recognition. The study combines
a narrative review with an in-regime (2023–2025) descriptive analysis of Taiwan’s
trade, focusing on partner shares and product-mix shifts that indicate movement
toward higher-value segments. Results show diversification without decoupling.
Overall volumes rise modestly while exports to the US tilt toward higher-value
goods. Lastly, PRC-bound flows remain sizable but differently composed. Interpreted
through balance of power, complex interdependence, and strategic ambiguity, the
evidence suggests that semiconductor-anchored centrality, together with credible security
signals and diversified economic ties, sustains leverage through composition
rather than formal recognition. The article recenters Taiwan in the US-PRC context
and clarifies observable implications for supply-chain policy and trade diplomacy.
Keywords Silicon Island · Semiconductors · Taiwan trade flows · Security
dilemma · Narrative review