MAC Advisory Committee: US-China Relations Remain 'Competitive but Not Broken'; Taiwan Must Strengthen Ties with US and Japan

The Mainland Affairs Council (MAC) released the highlights of the 78th advisory committee meeting today. Some members stated that US President Donald Trump, facing pressure from midterm elections, facilitated a meeting with Chinese leader Xi Jinping. This interaction helps rebuild a dialogue framework and reduce the risk of conflict, with US-China relations entering a state of "constructive strategic stability" characterized by "competitive but not broken" dynamics, as both sides seek leverage and room for strategic adjustment. Semiconductors, AI, rare earths, supply chains, and Indo-Pacific security remain core areas of competition. Members emphasized that following the Trump-Xi meeting, Taiwan must continue to strengthen relations with the US and Japan, and solidify trust with allies through media promotion and exchanges between non-governmental organizations. The issue of China's overcapacity and its spillover effects was also raised. Members noted that China's excess capacity is flooding overseas markets with low-priced products, exacerbating global trade tensions. Taiwan must be vigilant about the impact of low-priced Chinese imports on domestic industries and national security, while also remaining alert to the CCP's continued use of gray-zone tactics to pressure Taiwan. Members also noted that trade issues between the US and China have escalated into a competition for technological dominance and rule-setting power, estimating that global digital technology policies may split into three models: Chinese, American, and European. Members concluded that Taiwan must respond with more flexible and diverse strategies to ensure strategic autonomy in the restructuring of global supply chains.