Written by Raian Hossain. Taiwan has severe military security concerns, and the island has over-trade and investment dependency towards the PRC, which raises the question of economic security. As of 2022, the PRC accounted for 25% of Taiwan’s exports and 20% of its imports, making Beijing still the largest trading partner of Taipei. However, Taiwan made significant progress in growing trade by 25% with the U.S. in 2021 and expanded its trade volume with New South Bound countries under President Tsai Ing-wen. After a year of negotiations aimed at diversifying trade and commerce, the U.S. and Taiwan signed the first part of the US-Taiwan Initiative on 21st Century Trade. Meanwhile, the second round of negotiations has already started.