While the U.S. and Taiwan have enjoyed a friendly relationship strengthened by shared values and economic and commercial ties, the two countries are not bound by formal diplomatic ties.
The idea that a continuation of the status quo amid China’s military aggression in the region could hurt California’s economy and those of local communities was the premise of a roundtable — titled “Global Ties, Local Impact: Why Taiwan Matters for California” — held at Santiago Canyon College on Friday, Sept. 6.
It was hosted by Rep. Young Kim, R-Anaheim Hills, and she was joined by Rep. Jay Obernolte, R-Hesperia, and several local Taiwanese leaders.
“Some might wonder how Taiwan-U.S. relations affect Orange County and California,” said Kim, explaining that Taiwan is a subject matter oft brought up within political circles in Washington, D.C.
Kim name-dropped several prominent Taiwanese-owned businesses operating locally, including Din Tai Fung, a popular restaurant chain that specializes in soup dumplings, and 85°C Bakery Cafe, a Taiwanese coffee and pastry chain. Those restaurants, as well as the cell phones in our hands, Kim said, are just a few, prominent examples of Taiwanese contributions to the local community. Many phones, including those from Apple, contain chips made by a Taiwanese manufacturer.
But Taiwan, an independently ruled island that China sees as a breakaway province, “is under constant, economic and military coercion and pressure by the Chinese Communist Party,” Kim said. A CCP attack on Taiwan will greatly impact not only the U.S. economy but California’s as well, she said, doubling down on the importance of a formal relationship and a free-trade agreement between the U.S. and Taiwan.
“The effects for a high-tech economy like California will be more devastating,” said Kim, a two-term incumbent who chairs the House Foreign Affairs Subcommittee on the Indo-Pacific. “Taiwan is truly becoming a ‘here and now’ issue. Foreign policy concerns every American, not just D.C.”
In 2023, Taiwan, according to the nonpartisan Congressional Research Service, was the eighth-largest U.S. trading partner. And according to the California Chamber of Commerce, in the same year, California had the second-highest number of exports to Taiwan within the U.S., and Taiwan was the sixth-largest importer of California goods and services.
However, due to the lack of formal ties, Taiwan and the U.S. do not have a formal agreement that would minimize double taxation of the same source of income, Obernolte pointed out.
“The people of Taiwan should be treated the same way we treat other countries,” said Obernolte, who represents parts of Kern, Los Angeles and San Bernardino counties.
Danny Chen, a local immigration attorney based in Newport Beach, said his client pool has shown a steady increase of Taiwanese companies onshoring in the country. Chen, who represents 85°C Bakery Cafe and some other Taiwanese-owned businesses, said those companies employ “hundreds, if not thousands of workers” in the U.S.
Chen said Congress needs to look into closer working relationships with civilian organizations like the Taiwanese Chamber of Commerce to nurture Taiwan-U.S. relations.
“Many of the leaders work very closely with the Taiwanese government and private entities,” he said. “This is a great gateway for the U.S. government to form stronger person-to-person relationships.”
Lanhee Chen, a Republican candidate for state controller in 2022, said Southern California will feel the impacts should China escalate military exercises across Taiwan, given that a bulk of the imports coming into local ports are from the Indo-Pacific region.
“There are impacts here in California and they are felt in a very real way,” he said, alluding to the supply chain backlogs seen at the ports of Los Angeles and Long Beach during the pandemic, in part due to port closures and factory lockdowns in Asia.
Kim, who represents a district that touches Orange, Riverside and San Bernardino counties, said some of her constituents have asked her why they should pay attention to foreign policy and how events unfolding overseas affect them.
“They feel fatigued, they ask why the U.S. should get involved in all of these conflicts. I explain that if Taiwan is blockaded, or attacked, there are tremendous economic implications,” she said. “The ability for us to trade between Taiwan and the U.S. and the potential disruption in the supply chain — that’s going to affect livelihoods in California.”
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