From the Document: "Taiwan is a developed, dynamic, and competitive economy that is highly dependent on global trade. Taiwan has fared relatively well during the recent U.S.-People's Republic of China (PRC) trade conflict as a key link in global technology supply chains, supplying both U.S. and PRC markets. Looking ahead, Taiwan faces significant constraints as it seeks to overcome domestic challenges (such as labor mismatches and energy shortages), generate new sources of growth in emerging technologies, and diversify away from a growing economic dependence on the PRC. Amidst U.S.-PRC tensions, Taiwan is walking a fine line in trying to remain central to both U.S. and PRC technology markets, including supplying PRC companies like Huawei. Central to Taiwan's ambitions is the Taiwan government's effort to start talks with the United States on a free trade agreement (FTA) in the hope that an FTA might not only increase bilateral trade but potentially open the door to other FTAs and trade diversification for Taiwan."
CRS In Focus, IF10256
Congressional Research Service: https://crsreports.congress.gov/