Taiwan Was Having a Terrific U.S.-China Trade War Until Coronavirus Arrived

{
  "authors": [
    "Evan A. Feigenbaum",
    "Jeremy Smith"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "dc",
  "centers": [
    "Carnegie Endowment for International Peace"
  ],
  "collections": [],
  "englishNewsletterAll": "asia",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "AP",
  "programs": [
    "Asia"
  ],
  "projects": [],
  "regions": [
    "East Asia",
    "Taiwan"
  ],
  "topics": [
    "Political Reform",
    "Economy",
    "Trade",
    "Foreign Policy"
  ]
}

In The Media

Taiwan Was Having a Terrific U.S.-China Trade War Until Coronavirus Arrived

Taiwan is a victim of its past success—dominating important industries, such as semiconductors, but underinvesting in the new fields.

By Evan A. Feigenbaum and Jeremy Smith

Published on Apr 28, 2020

Source: National Interest

Before the coronavirus hit, Taiwan’s 2019 headline growth figures were nothing short of stellar. Its economy grew at an impressive 3.31 percent during the fourth quarter of 2019, propelling President Tsai Ing-Wen into her second term on a high note and giving Taiwan businesses a boost.

Read the Full Text

This article was originally published by the National Interest.

About the Authors

Evan A. Feigenbaum

Vice President for Studies

Evan A. Feigenbaum is vice president for studies at the Carnegie Endowment for International Peace, where he oversees work at its offices in Washington, New Delhi, and Singapore on a dynamic region encompassing both East Asia and South Asia. He served twice as Deputy Assistant Secretary of State and advised two Secretaries of State and a former Treasury Secretary on Asia.

Jeremy Smith

Former James C. Gaither Junior Fellow, Asia Program

Jeremy Smith was a James C. Gaither Junior Fellow with the Asia Program.

Political Reform Economy Trade Foreign Policy East Asia Taiwan

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie China

Commentary
The Spring and Autumn of Chinese Politics
China’s political future will be shaped between now and next October. As the Communist Party enters its intense “campaign season” to prepare for a major political transition in 2027, reading Beijing's actions and responses may become more difficult as domestic politics weigh on its behavior more than usual.
Damien Ma
Article
Can China Turn Its Small Modular Reactor Ambitions into Commercial Reality?
China has showcased its engineering prowess with small modular reactor demonstration projects. But turning these technological achievements into commercial success will be a greater challenge.
Tong Zhao
Commentary
China Financial Markets
The Plaza Accord and Its Relevance for China
The Plaza Accord was not an externally imposed punishment of Japan but part of a broader restructuring that Japanese economists and policymakers themselves recognized was necessary. Its effects were undermined, however, when Tokyo responded to the resulting slowdown with policies that exacerbated investment, credit expansion, and the very imbalances the adjustment was intended to resolve.
Michael Pettis
Paper
Untangling the Nuclear Knot: A Constructive Agenda for Managing China’s Nuclear Relations with the United States and Its Allies
The nuclear relationship between China and the United States is increasingly shaped by widening perception gaps rather than deliberate strategic design.
Tong Zhao
Commentary
China Financial Markets
Who Paid for China’s Last Debt Cleanup, and Who Will Pay for the Next?
China’s banking crisis in the 2000s was resolved by transferring the costs to households through financial repression—a decision that recapitalized the banks while exacerbating the structural imbalances that continue to shape the Chinese economy today.
Michael Pettis

More Work from Carnegie China

Commentary

The Spring and Autumn of Chinese Politics

China’s political future will be shaped between now and next October. As the Communist Party enters its intense “campaign season” to prepare for a major political transition in 2027, reading Beijing's actions and responses may become more difficult as domestic politics weigh on its behavior more than usual.

Damien Ma

Article

Can China Turn Its Small Modular Reactor Ambitions into Commercial Reality?

China has showcased its engineering prowess with small modular reactor demonstration projects. But turning these technological achievements into commercial success will be a greater challenge.

Tong Zhao

Commentary

China Financial Markets

The Plaza Accord and Its Relevance for China

The Plaza Accord was not an externally imposed punishment of Japan but part of a broader restructuring that Japanese economists and policymakers themselves recognized was necessary. Its effects were undermined, however, when Tokyo responded to the resulting slowdown with policies that exacerbated investment, credit expansion, and the very imbalances the adjustment was intended to resolve.

Michael Pettis

The nuclear missile formation passes through Tian'anmen Square during a military parade on September 3, 2025 in Beijing, China.

Paper

Untangling the Nuclear Knot: A Constructive Agenda for Managing China’s Nuclear Relations with the United States and Its Allies

The nuclear relationship between China and the United States is increasingly shaped by widening perception gaps rather than deliberate strategic design.

Tong Zhao

Commentary

China Financial Markets

Who Paid for China’s Last Debt Cleanup, and Who Will Pay for the Next?

China’s banking crisis in the 2000s was resolved by transferring the costs to households through financial repression—a decision that recapitalized the banks while exacerbating the structural imbalances that continue to shape the Chinese economy today.

Michael Pettis