ThinkTankWeekly

Taiwan And Europe Trade Relations And Economic Security

IISS | 2026-05-24 | tech

Topics: China, Climate, Europe, Russia, Taiwan, Trade, Ukraine

Visit original source

ThinkTankWeekly provides a curated entry and summary only. Full text and PDF remain on the publisher's website.

English Summary

The report argues that the economic relationship between Europe and Taiwan is rapidly evolving from purely commercial ties to a strategic partnership centered on national security and resilience. Key evidence highlights the growing importance of three sectors—semiconductors, renewable energy, and dual-use technologies (like drones)—as both sides seek to diversify supply chains and achieve strategic goals. While trade is expanding, the growth of Taiwanese investment into Europe remains hampered by regulatory and capital allocation concerns. Strategically, deepening cooperation in these high-tech sectors is crucial for Europe's energy transition and economic security, positioning Taiwan as a vital partner in global technological resilience.

中文摘要

本報告指出,歐台之間的經濟關係正從純粹的商業聯繫,快速演變為以國家安全和韌性為核心的戰略夥伴關係。關鍵證據凸顯了三個領域——半導體、再生能源和軍民兩用技術(如無人機)——的重要性日益增加,因為雙方都在尋求分散供應鏈並達成戰略目標。儘管貿易正在擴張,但台灣投資歐洲的增長仍受限於監管和資本配置方面的顧慮。從戰略角度來看,深化在這些高科技領域的合作,對於歐洲的能源轉型和經濟安全至關重要,這將使台灣定位為全球技術韌性的關鍵夥伴。

Related Entries

  1. 1.
    2026-11-07 | middle_east | 2026-W45 | Topics: China, Middle East, Nuclear, Russia, Taiwan, Trade, Ukraine, United States

    The article argues that Donald Trump's unique and prolonged lame-duck period, coupled with domestic political pressures, makes him dangerously prone to international instability. Having exhausted major diplomatic gambits, Trump is expected to channel his energy into high-stakes, unilateral actions, primarily targeting adversaries such as Iran and Cuba. These potential actions—ranging from fresh strikes in the Persian Gulf to attempts at regime change—carry a significant risk of destabilizing regional security and triggering a global economic crisis. Policymakers must anticipate this pivot to high-risk foreign policy to mitigate potential international flare-ups.

    Read at Foreign Affairs

  2. 2.
    2026-11-07 | economy | 2026-W45 | Topics: China, Europe, Trade

    China's economic strategy is characterized by a persistent 'economics of denial,' prioritizing massive state-directed investment in advanced technology over addressing weak domestic consumption. This approach is rooted in a flawed belief that controlling physical capital will automatically generate productivity and wage growth, ignoring the structural imbalance where domestic demand consistently falls short of supply. This overinvestment and underconsumption model is unsustainable. Consequently, Beijing's policies will continue to generate global deflationary pressures and escalating trade friction, necessitating a fundamental pivot toward consumption-led growth for long-term stability.

    Read at Foreign Affairs

  3. 3.
    2026-11-07 | economy | 2026-W45 | Topics: AI, China, Indo-Pacific, Middle East, Trade, Ukraine, United States

    The Blue Wave signals significant voter frustration with cost of living and inflation, giving Congress a mandate to prioritize affordability and cost-reduction measures. Economically, the rapid build-out of AI data centers is creating localized stress, driving up skilled labor wages and straining resources, while also facing constraints from power grids and potential local regulatory backlash. Policymakers must manage this 'sequencing issue'—addressing rising costs before full productivity gains from AI can materialize—and anticipate shifts in global data center infrastructure as the market matures.

    Read at CFR

  4. 4.
    2026-11-07 | diplomacy | 2026-W45 | Topics: Climate, Europe, Indo-Pacific, Trade, Ukraine, United States

    The U.S. is drastically reducing core funding to multilateral institutions, withdrawing from numerous bodies due to perceived misalignment with national interests. While multilateral channels offer critical advantages—such as pooling resources for global public goods and managing risk in fragile settings—the U.S.'s funding remains heavily 'earmarked,' which effectively 'bilateralizes' the system and undermines shared burden-sharing. This practice, coupled with deep cuts, diminishes the multilateral system's effectiveness and efficiency, particularly in humanitarian aid. Policy recommendations suggest the U.S. must adopt a systematic, published strategy for aid channel choice and shift from restrictive project-level earmarking to broader thematic funding to restore global cooperation.

    Read at Brookings

  5. 5.

    The article analyzes the deep ideological split within the Democratic Party regarding the future of U.S. foreign policy, pitting centrists against progressives. Centrists generally advocate for restoring a reformed U.S.-led international order and strengthening alliances, while progressives argue for a multipolar world that prioritizes transnational threats like climate change and AI over geopolitical competition. This division is most pronounced in the Middle East, where centrists push for greater pressure on Israel and a regional settlement, a shift largely welcomed by progressives. The core finding is that these internal debates threaten to consume a future administration with indecision, making it difficult for the U.S. to project a coherent and unified global strategy.

    Read at Foreign Affairs