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February 2026
Week of Feb 16, compared to 12-week average
Taiwan's economy is advancing strategic diversification through new trade agreements and offshore chip production. The US and Taiwan signed a deal to cut tariffs and boost purchases of US goods, while Taiwan-India trade hit a record high. TSMC will produce advanced 3-nanometer chips in Japan, even as Taiwan stated it is 'impossible' to move 40% of chip capacity to the US.
Cross-strait politics are dominated by high-level US-China diplomacy over Taiwan, with Beijing issuing repeated warnings. Xi warned Trump to be careful with Taiwan arms sales during a call, and China later warned the US of 'confrontation' over any 'plotting' on Taiwan. In parallel, the Chinese mainland revived key Taiwan exchanges and a think tank forum co-hosted by the CPC and KMT was held in Beijing.
Regional military activity around Taiwan is intensifying, marked by allied drills and new deployments. The Philippines, Japan, and the US held a joint drill near Taiwan waters, and Japan plans to install missiles near Taiwan. Taiwan tested a new attack drone to deter China, while the PLA tracked an Australian warship transiting the Taiwan Strait.
Societal discourse is fractured between cross-strait political tensions and domestic incidents. The mainland called out the hypocrisy of 'Taiwan independence' separatists, and there are calls for Chinese mainland tourists to return to Taiwan. A separate incident involving a Taiwanese girl shoved in Tokyo sparked a debate over hidden aggression in Japanese society.