❓WHAT HAPPENED: Taiwan’s exports to the United States surpassed those to China for the first time in decades, according to new U.S. Department of Commerce data.
👤WHO WAS INVOLVED: The United States, China, Taiwan, the U.S. Department of Commerce, Taiwanese chipmakers, and Taiwan’s Directorate-General of Budget, Accounting and Statistics.
📍WHEN & WHERE: December 2025 trade data reflects U.S.-Taiwan commerce and broader global trends and was released in February 2026.
💬KEY QUOTE: “Investment to the U.S. has increased dramatically, and also because of the rise of AI you have seen dramatic and significant changes.” – Taiwan’s minister of economic affairs Kung Ming-hsin
🎯IMPACT: Taiwan’s economic growth surged, bolstered by its semiconductor industry and increased U.S. investment.
Taiwanese exports to the United States have surpassed those from China in December, marking the first time in several decades that China has fallen behind the island nation just off its coast. Data released by the U.S. Department of Commerce this week shows that imports from Taiwan reached nearly $24.7 billion in December, a 22 percent increase from November, while imports from China edged up to $21.1 billion during the same period.
In recent years, Taiwan has become a key trade partner with the United States, driven by demand for its semiconductor industry, which produces 90 percent of the world’s advanced chips—but many of which are designed by American companies. The U.S. goods trade deficit with Taiwan widened to $146.8 billion in 2025, while the deficit with China expanded to $202.1 billion, despite tariffs imposed during the ongoing trade dispute.
Notably, President Donald J. Trump recently entered the United States into a new trade agreement with Taiwan, capping tariffs on the latter’s goods at 15 percent. Conversely, Taiwan Semiconductor Manufacturing Company (TSMC) and other chipmakers pledged to invest over a quarter trillion dollars to expand U.S. capacity for advanced semiconductors and artificial intelligence (AI) technology.
Taiwan’s economic growth reached 8.63 percent in 2025, nearly doubling from prior years, according to its Directorate-General of Budget, Accounting and Statistics. The country has also surpassed Japan and South Korea in GDP per capita. Kung Ming-hsin, Taiwan’s minister of economic affairs, noted, “Investment to the U.S. has increased dramatically, and also because of the rise of AI you have seen dramatic and significant changes.”
Importantly, President Donald J. Trump will travel to Beijing in March as part of an official visit. It is expected that he and Chinese Communist Party leader Xi Jinping will meet, with trade a key topic of discussion.
Image by Makoto Lin / Office of the President.
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