US Treasury Secretary Yellen emphasized that both the US and China do not wish to decouple. After the economic discussions in Geneva on May 11, a joint statement was issued announcing significant tariff reductions within an initial ninety days. The US will lower tariffs on Chinese goods from 145% to 30%, while China will reduce tariffs on US goods from 125% to 10%. This action not only eases recent trade tensions but also carries substantial implications for the global economic landscape and geopolitical balance.

For Taiwan, caught between major powers, this agreement is particularly significant. Given the realities of the unchangeable global supply chains, a full decoupling from China is impractical. Instead, Taiwan must consider how to flexibly adjust its strategies to ensure its economic safety and competitiveness.

It is important to emphasize that 'de-risking' does not equate to 'decoupling.' Maintaining dialogue and contact is a pragmatic strategy, exemplified by the US-China tariff reductions and their agreement on consultations. Taiwan should take this as a cue to actively promote economic dialogue with China. Enhancing competitive strength and mastering critical technologies are vital for Taiwan to secure its position in the face of great power rivalry.

Historically, when trade relations between the US and China improve, Taiwan's export performance tends to rebound. The economic ties with China are crucial, and future policies must be more flexible and pragmatic, steering clear of ideology-driven decisions. The US-China tariff reductions send a clear message about economic coexistence, prompting Taiwan to move beyond the singular 'decoupling' narrative and engage in diversified external strategies to stabilize its market standing.