Taipei: Taiwan is transitioning from a largely unnoticed supplier to a more influential global player as economic power increasingly shapes international trade, according to economist Roy Lee. Speaking at an event in Taipei, Lee emphasized the opportunities presented to Taiwan due to its growing technological, manufacturing, and economic capabilities amid a weakening rules-based trading order.
According to Focus Taiwan, Lee delivered a speech titled "Industrial Opportunities for Taiwan and the U.S. Amid Global Changes" at the 2026 Taipei-U.S. City Products and Services Showcase. The event, themed "Taipei-U.S. City Collaboration: Powering New Industry Opportunities," highlighted Taiwan's evolution from being excluded from international rule-making to becoming an economy with a voice and influence.
Lee, who is the senior deputy executive director of the Chung-Hua Institution for Economic Research's Center for International Trade Policy, noted that strategic competition between the United States and China is reshaping critical supply chains and technologies, including semiconductors, artificial intelligence, and biotechnology. He explained that the two economies have reached a "divergence point," making reintegration of technologies and supply chains increasingly complex.
While Lee cautioned against viewing the emerging order as two opposing blocs, he highlighted that the U.S., European Union, Japan, and Southeast Asian countries are pursuing de-risking strategies tailored to their security concerns and industrial structures. He pointed out that while military and critical technology supply chains might decouple more extensively, ordinary trade would remain largely unchanged.
Lee stressed that economic security involves rebalancing security and efficiency, with countries striking that balance based on their unique circumstances. He advised Taiwan to customize its approach to individual partners rather than universally adopting Washington's terminology and priorities, particularly cautioning against discussing decoupling with ASEAN, which is not receptive to such discourse.
Navigating this fragmented landscape will require Taiwan to focus on competitiveness and indispensability as the foundation of its economic security, Lee said. He emphasized the importance of reduced dependence and resilience against coercion or disruption. Additionally, cooperation with the U.S. could keep Taiwan close to leading technologies and customers, while successful bilateral projects could enhance its credentials as it seeks closer ties with Japan and the EU.
Lee concluded by asserting that Taiwan should aim to retain its position as a global "kingmaker" without seeking to take the throne. He remarked, "But without Taiwan, it will be difficult for others to compete for it."