Meeting Highlights of the 2026 International Conference on "Trade, Industrial Policy and Economic Resilience in Key Asian Economies: Perspectives from Taiwan, South Korea and India"
Editorial Team, Taiwan ASEAN Studies Center, Chung-Hua Institution for Economic Research | November 2, 2026
The 2026 International Conference on "Trade, Industrial Policy and Economic Resilience in Key Asian Economies: Perspectives from Taiwan, South Korea and India," organized by the Taiwan ASEAN Studies Center (TASC) at the Chung-Hua Institution for Economic Research (CIER) and co-organized by the Institute of Diplomacy and International Affairs, Ministry of Foreign Affairs, was successfully held on October 29, 2026, at the Institute of Diplomacy and International Affairs. Conducted in English, the conference focused on the drastic global geopolitical shifts, escalating technology competition among major powers, and trade environment turbulence in the "Trump 2.0" era, as well as exploring how key Indo-Pacific economies can reshape economic resilience and supply chain security.
Opening remarks were delivered by Amb. Baushuan Ger, Vice Minister of Foreign Affairs, Republic of China (Taiwan), and Dr. Shin-Horng Chen, Vice President of CIER. The keynote presentation session was moderated by Mr. John Chen-Chung Deng, Former Minister without Portfolio, featuring presentations by Dr. Shin-Horng Chen; Dr. Kyungjin Song, Senior Fellow at the Asiatic Research Institute, Korea University; and Prof. Prabir De from the Research and Information System for Developing Countries (RIS), India. Subsequently, a roundtable discussion was moderated by Ms. Kristy Tsun-Tzu Hsu, Director of TASC, featuring Ms. Foo Teow Lee, Trade Representative of the Singapore Trade Office in Taipei; Mr. Ninad S. Deshpande, Director General of the India-Taipei Association (ITA); and Mr. Stephen Su, Senior Vice President of the Industrial Technology Research Institute (ITRI).
[Former Minister without Portfolio John Chen-Chung Deng Moderating the Session / Photo: Photography Team]
Presentation 1: U.S.-China AI Competition and Its Implications for Taiwan's AI Supply Chain
The first keynote presentation was delivered by Dr. Shin-Horng Chen, Vice President of CIER, titled "U.S.-China Competition in AI: Implications for Taiwan's AI Supply Chain". Global value chains (GVCs) are rapidly shifting from the old framework that emphasized free trade and open economies to a new paradigm centered on national security and economic resilience. It is particularly evidenced in the trade policy agenda issued by the U.S. White House, which focuses on Section 301 reviews, the re-examination of the United States-Mexico-Canada Agreement (USMCA), and the reconstruction of semiconductor and critical mineral supply chains, with the U.S. requiring full compliance across its alliance network.
Regarding critical minerals, in response to China's weaponization of rare earth resources, the G7 Summit set a target to reduce reliance on any single supplier country to below 60% by 2030. However, Taiwan faces considerable challenges over the short term, as its industrial sector relies heavily on imported processed materials, while recovering waste materials to the required level of purity and establishing viable recycling markets remain particularly difficult.
In the AI arena, the global market is increasingly dividing into two camps: a closed, security-oriented supply chain led by the U.S., and open-source models led by China. A RAND survey indicates that the U.S. tends to focus on software, healthcare, and scientific research applications, whereas China places greater emphasis on physical AI, manufacturing, and transportation, compelling multinational corporations like Apple to adopt dual-market strategies. Furthermore, the U.S. is utilizing AI-powered detection models to strictly inspect "Made in China" or Chinese-content goods transshipped via third countries into the U.S.
Coupled with the White House AI Action Plan and Federal Communications Commission (FCC) restrictions on domestic U.S. assembly ratios for medical robots, the traditional definition of economic and trade resilience has expanded beyond contingency planning for natural disasters to encompass geopolitical competition and the net-zero transition. Corporate management practices must evolve from "KYC" to "KYC + KYP + KYS" (Know Your Customer, Know Your Product, Know Your Structure) to establish fully traceable and compliant supply chains.
[Keynote Presentation by Dr. Shin-Horng Chen, Vice President of CIER / Photo: Photography Team]
Presentation 2: Korea's Strategies on High-Tech Industry Development
The second keynote presentation was delivered by Dr. Kyungjin Song, Senior Fellow at the Asiatic Research Institute, Korea University, on "Korea's Strategies on High-Tech Industry Development". She began by citing the views of Lee Kuan Yew (former Prime Minister of Singapore), noting that the balance of power among major economies in the modern era is increasingly determined by economic and technological capabilities. The South Korean government has likewise declared technological capabilities to be its most critical indicator of national security. South Korea ranks fourth in the World Intellectual Property Organization’s (WIPO) Global Innovation Index and allocates 5.13% of its GDP to R&D expenditure, the second-highest share globally, making it a leading example of an R&D-driven growth model.
Facing three major challenges—a decline in potential growth rate to 1.5%, low birth rates alongside an aging population, and geopolitical uncertainties—the South Korean government significantly increased the 2025 budget for the Ministry of Science and ICT by nearly 25%, with R&D funding rising by 36% and AI-related funding by 57%.
The policy agenda revolves around three mega projects (localization of AI data centers, physical AI and robotics manufacturing upgrades, and next-generation ultra-high-density semiconductor stacking) and seven seed projects (Small Modular Reactors [SMRs], quantum technology, and extending strategic stockpiles of critical minerals from 180 to 365 days), alongside the "Brain to Career" initiative aiming to recruit 2,000 top international talents within 5 years.
In terms of Korea-Taiwan relations, the AI boom has strengthened bilateral economic ties. Taiwan has become South Korea’s sixth-largest trading partner, while South Korea is Taiwan’s second-largest import source. The two countries have highly complementary semiconductor industries: South Korea exports memory chips, particularly high-bandwidth memory (HBM) and DRAM, while Taiwan exports logic chips and semiconductor packaging and testing equipment.
Moving forward, the two economies should deepen the integration of HBM and Chip-on-Wafer-on-Substrate (CoWoS) advanced packaging, conduct technical exchanges on SMRs and green energy, promote joint R&D and intelligence sharing in critical mineral hubs such as Australia, and jointly push for accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
[Keynote Presentation by Dr. Kyungjin Song, Senior Fellow at the Asiatic Research Institute, Korea University / Photo: Photography Team]
Presentation 3: India in the Global Value Chains: Trade Policy, Industrial Strategy and Regional Integration
The third keynote presentation was delivered by Professor Prabir De from the Research and Information System for Developing Countries (RIS), India, titled "India in the Global Value Chains: Trade Policy, Industrial Strategy and Regional Integration". India's GDP is projected to surpass Japan's before 2031, becoming the world's third-largest economy. Its growth is driven by six key pillars: a middle-class population of 500 million, widespread adoption of digital payments, exports of highly skilled service professionals, large-scale public investment in infrastructure, world-leading solar power generation, and 12 high-quality next-generation free trade agreements (FTAs). India's exports have transformed from raw gems and bulk commodities in 2010 to electronics and high-tech manufacturing, with its share in the GVC for smartphones climbing rapidly, ranking second only to China.
The iPhone manufacturing and export industry in India provides a notable example. Each iPhone requires the import of 124 different components, with Taiwan, South Korea, and Japan serving as its major upstream suppliers. Meanwhile, 63.3% of finished products are exported to the U.S. and reportedly unaffected by punitive tariffs. This highlights the urgent need to strengthen Taiwan–India connectivity through direct passenger and cargo air services, as well as improved maritime transport links.
The Indian government is promoting localization in electronics, electric vehicles, biotechnology and pharmaceuticals, and green energy equipment through its US$26 billion Production Linked Incentive (PLI) scheme and Atmanirbhar Bharat (Self-Reliant India) initiative. In addition, India's actual trade-weighted tariff is only around 7.9%, its Logistics Performance Index (LPI) ranking has improved to 38th, and port turnaround time has been reduced to less than one day.
Bilateral trade between Taiwan and India is approaching the US$20 billion. The signing and implementation of the Authorized Economic Operator Mutual Recognition Arrangement (AEO MRA) between the two economies has significantly boosted customs clearance efficiency, making it essential for Taiwanese businesses to leverage India's scale, talent, and policy dividends to deepen their footprint.
[Keynote Presentation by Prof. Prabir De, Research and Information System for Developing Countries (RIS) / Photo: Photography Team]
Roundtable Discussion: Beyond Economic Shifts – Creating New Opportunities for Prosperity and Cooperation
The roundtable discussion was moderated by TASC Director Kristy Tsun-Tzu Hsu, focusing on how countries can strengthen economic resilience through regional hubs, ecosystem-based supply chains, and critical material cooperation under the pressure of U.S.-China technology friction and tariffs.
Ms. Foo Teow Lee, Trade Representative of the Singapore Trade Office in Taipei, noted that Singapore adheres to its national goal of maintaining manufacturing at 25% of GDP, currently contributing 10% of global semiconductor output and 20% of semiconductor equipment manufacturing. In 2025, Taiwan became Singapore's largest trading partner, with bilateral trade reaching US$170 billion. She emphasized the importance of leveraging ASEAN’s US$4 trillion GDP and population of 700 million by capitalizing on regional synergies through tariff reductions, digital economy agreements, and electricity grid connectivity.
Mr. Ninad S. Deshpande, Director General of the India-Taipei Association, described supply chain restructuring as a major opportunity for India. Since 2022, 12 semiconductor facilities have been established or initiated in India, while approximately 400 Taiwanese companies have invested US$600 million in the country. Direct passenger flights between Taiwan and India were expected to resume in December 2025. He further noted that the talent development pillar of India’s India Semiconductor Mission (ISM), together with the AEO MRA, would help Taiwanese businesses establish dual-track production operations.
[Panel Discussion: TASC Director Kristy Tsun-Tzu Hsu in Discussion with Singapore Trade Representative Foo Teow Lee and ITA Director General Ninad S. Deshpande / Photo: Photography Team]
Mr. Stephen Su, Senior Vice President of ITRI, proposed an "Eco-chain" strategy, emphasizing keeping R&D and innovation "brains" onshore while dispersing downstream production globally. Echoing Dr. Shin-Horng Chen and Dr. Kyungjin Song, he highlighted the strong complementarity between Taiwan and South Korea in HBM, wafer manufacturing, and advanced packaging technologies such as CoWoS, as well as South Korean enterprises' experience in negotiating flexible division of labor with the U.S.
Addressing the challenges of rare earth and critical material monopolies raised by former Minister without Portfolio John Deng, experts noted that ITRI is developing rare-earth-free motors and recycling technologies. India and Australia have signed agreements to strengthen critical mineral cooperation and have attracted Taiwanese businesses to help establish a Taiwan–India–Australia Critical Materials Cooperation Network. South Korea, meanwhile, is promoting its presence in Australia, through the establishment of a representative office.
Lastly, Dr. Chen stressed that, in the face of geopolitical risks, businesses must implement comprehensive traceability systems based on KYC + KYP + KYS (Know Your Customer, Know Your Product, and Know Your Structure). Only through closer cooperation among major Asian economies can the region achieve shared and sustainable prosperity amid the rapidly changing global economic landscape.
[Panel Discussion: Discussion Among All Speakers and Representatives / Photo: Photography Team]
The 2026 International Conference on "Trade, Industrial Policy and Economic Resilience in Key Asian Economies: Perspectives from Taiwan, South Korea and India" concluded successfully. The Taiwan ASEAN Studies Center at CIER is committed to serving as a platform connecting government, industry, and academia on key Southeast Asian issues. TASC also seeks to foster greater exchange and understanding of Southeast Asian developments within Taiwan’s research and policy communities. Moving forward, TASC will continue to promote cross-sector engagement and collaboration, helping Taiwanese businesses identify and capitalize on emerging opportunities in Southeast Asia.
