Why Taiwan matters so much to the United States? WION explains

US President Donald Trump is in China for a two-day visit from May 13 to 15 at the invitation of President Xi Jinping amid the ongoing Iran war. Trump came to Beijing after almost nine years amid escalating bilateral tensions over a range of issues, including trade, technology, defence and Taiwan.

During the meeting, the major flashpoint was the Taiwan issue more than any other issue, as Beijing has called Taiwan the core of China's core interests, with reunification, even by force. But even after two hours and 15 minutes of meeting on the Taiwan issue, Trump dodged questions on Taiwan after reporters asked.

Meanwhile, Chinese President Xi Jinping on Thursday warned US President Donald Trump that both the largest economies could "come into conflict" if the issue over self-ruled Taiwan is mishandled.

The Taiwan question is "the most important issue in China-US relations," Xi told US President Donald Trump while hosting him at the Great Hall of the People, China's ceremonial state building, according to Xinhua News Agency. "If it is handled properly, the bilateral relationship will enjoy overall stability. Otherwise, the two countries will have clashes and even conflicts, putting the entire relationship in great jeopardy," he said.

In another significant development, Taiwan's cabinet spokeswoman, Michelle Lee, on Thursday emphasised that the US has been continuously in support of the sovereign status of Taiwan, according to Al Jazeera. She added that the US has "repeatedly reaffirmed" its support for Taiwan.

Why is Taiwan important to the United States?

Taiwan is a self-ruled island which is currently thriving in its democracy with a dynamic capitalist economy. It is also one of the largest potential flash points between the US and China, marking the only place which make possible for open warfare between the two powerful militaries. China, around Taiwan, regularly conducts military exercises in an ongoing show of force.

For years, successive US presidents have firmly backed Taiwan against pressure from its powerful neighbour, China. However, there is growing unease that President Donald Trump could shift that policy, a move that could have far-reaching global consequences. Taiwan is vital to the American economy, producing more than 90 per cent of the world’s most advanced semiconductors, which are essential for artificial intelligence, defence systems and global supply chains.

For decades, the United States has refused to recognise Beijing’s claim over the island and has continued supplying Taiwan with billions of dollars in military assistance each year, including a $10 billion arms package announced last December. However, a fresh $14 billion arms package has reportedly been awaiting Trump’s approval for months. Many in Taiwan are concerned that President Xi Jinping could leverage trade negotiations to weaken US backing or alter the existing status quo.

As Assistant Secretary of Defence Ely Ratner noted, Taiwan is situated at a critical point within the first island chain, which anchors a network of US allies and partners, extending from the Japanese archipelago down to the Philippines and into the South China Sea. It is also critical for the region’s security and critical to the defence of US interests along the Indo-Pacific region.

Taiwan also plays a key role in maintaining the balance of power in the Indo-Pacific due to its key location. As part of the first island chain, Taiwan helps limit China’s ability to project military power into the wider Pacific. If China were to take control of Taiwan, it could deploy military assets there, restricting US operations and threatening regional allies such as Japan and the Philippines.

Taiwan is also central to global economic stability, producing nearly 70 per cent of the world’s semiconductors and the most advanced chips. Any disruption could trigger severe supply chain shocks worldwide. Politically, Taiwan represents a successful democracy in Asia. Its fall would weaken international norms against changing borders by force, damage US credibility with allies, and increase instability across the region.