Taiwan's trade policy.
Washington's abandonment of the Trans-Pacific Partnership (TPP), a comprehensive free trade agreement between economies on both sides of the Pacific Ocean, is prompting Taiwan to seek a new direction in trade policy. Taiwan’s president, Tsai Ing-wen, is seeking to increase trade and investment with partners other than China -- particularly with India and South-east Asia -- and pursue a bilateral trade agreement with the United States. Tsai's Presidential Office has already established a special office to promote trade links with India and South-east Asia.
Taiwan will be subject to intense China-US rivalry, with both seeking to draw the island away from the other.
Beijing will put pressure on Taipei to resume cross-Strait economic expansion efforts.
Trade with India will expand, but will still be dwarfed by exports to China.
Tsai's 'New Southbound Policy' initiative is unlikely to reduce Taiwan’s reliance on the China market significantly.
