From the Document: "Taiwan is a top U.S. trade partner and key link in global technology supply chains, supplying both the U.S. and China markets, although this position is increasingly tenuous with U.S. government efforts to restrict China's access to advanced technologies. Taiwan's economy is highly dependent on global trade, with exports accounting for almost 70% of gross domestic product (GDP). Taiwan is seeking to overcome economic challenges (such as labor mismatches and energy shortages); generate new sources of growth in emerging technologies; and diversify away from its economic dependence on the People's Republic of China (PRC or China). Central to these ambitions is the Taiwan government's effort to start trade talks with the United States. [...] In December 2020, the U.S. Department of Treasury added Taiwan to its monitoring list of major trading partners that merit close attention to their currency practices and macroeconomic policies. Treasury cited a significant expansion in Taiwan's trade (current) account surplus and Taiwan's net foreign exchange purchases of $10.5 billion between July 2019 and June 2020."
CRS In Focus, IF10256
Congressional Research Service: https://crsreports.congress.gov/