Small in size, big in tech and influence: How Taiwan punches above its weight in Apec

The Asia-Pacific Economic Cooperation (Apec) 2025 Summit, which was hosted by Korea in Gyeongju, concluded on November 1. It became famous more for the long-awaited summit meeting between US President Trump and Chinese President Xi Jinping. They both met each other as Trump was departing without attending the main summit.

That summit focused more on trade and economic issues between them and not on geopolitical issues. Due to this, the Taiwan issue was not discussed between Trump and Xi.

The Apec is the one international body of which Taiwan is a member, because the members are economies and not states. It participates as Chinese Taipei. As for the Taiwan issue, which is a part of uncertainties in the Indo-Pacific, it was not discussed between Xi and Trump, which did not imply that the Taiwanese delegation, led by presidential adviser Lin Hsin-yi, Taiwan’s envoy to this year’s Apec Economic Leaders’ meeting, was underplaying its presence.

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The delegation met new Japanese Prime Minister Sanae Takaichi, leading to a Chinese protest. In the absence of Trump, the US delegation was led by Treasury Secretary Scott Bessent, and the Taiwanese representative met with him also and discussed semiconductors and resilient supply chains. Other delegations were perhaps more reticent in having public meetings with the Taiwanese, but the Taiwanese delegation was apparently quite effective in its participation.

The Apec comprises 21 member economies across the Pacific Rim. Established in 1989, its aim is to facilitate free trade and economic cooperation in the region. Unlike a treaty-based organisation, Apec operates on consensus, voluntary commitments, and dialogue rather than binding rules.

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At each summit the leaders gather to set high-level direction on issues like trade liberalisation, supply-chain resilience, digital economy, sustainability, connectivity and inclusive growth. Over the years the context has evolved: from chiefly tariff reduction to now encompassing issues such as digital innovation, green growth and resilience to shocks.

Although Taiwan has a limited diplomatic outreach, it has been an active member economy of Apec, and uses the forum strategically to carve out international space and advance its economic diplomacy.

Taiwan has over the years taken up roles within Apec’s many working groups and sectoral initiatives: it has chaired or served as vice-chair in 14 functional groups, taken on convenor/lead shepherd roles, hosted numerous events, and engaged with topics such as Small and Medium-sized Enterprises (SMEs), the digital economy, health emergencies, food security and trade facilitation.

This means that even when “eyes” are elsewhere in the major geopolitics, Taiwan has quietly buttressed its international profile through technical, functional and multilateral engagement rather than formal political recognition. For example, Taiwan has used Apec platforms to share its pandemic response and digital health solutions and enhance SME digitalisation.

One of Taiwan’s strongest cards has been its advanced technology and manufacturing base, notably semiconductors, high-tech industries and supply-chain linkage. At Apec, Taiwan emphasised its shift from manufacturing towards “creation”, the digital economy, and AI infrastructure.

Taiwan’s delegation used the summit to press its message of economic resilience and people-centred artificial intelligence (AI) and to share its expertise in frontier industries with like-minded economies. In doing so, Taiwan positions itself as a contributor of solutions to regional economic challenges.

What is particularly interesting is how Taiwan’s institutional and functional impact within Apec has been achieved somewhat beneath the glare of major headline diplomacy (for example, US-China rivalry or territorial disputes).

Taiwan’s participation in Apec working groups strengthens its capacity to shape regional norms. It builds institutional links (with other economies, with business groups, and with multilateral platforms) that persist beyond any single summit or headline event. As a result, Taiwan develops networks and expertise in ways that are less visible, yet significant.

As global supply chains become more complex and resilience becomes a priority, Taiwan’s role in semiconductors, digital platforms and manufacturing ecosystems gives it relevance. Its ability to bring that expertise to Apec forums enhances its bargaining power and value as a partner, as even without formal diplomatic relations, Taiwan is an indispensable economic actor.

By consistently engaging in themes like sustainability, inclusive growth, women’s entrepreneurship, digital inclusion and health security, Taiwan builds an image of a responsible stakeholder. When major actors focus on trade war headlines or geopolitical rivalry, Taiwan quietly “gets on with” agenda items that matter for long-term regional cooperation. That steady role matters in shaping future opportunities for its international integration.

Despite these achievements, Taiwan’s participation in Apec comes with structural constraints due to its special diplomatic status and the “One China” principle invoked by Beijing. This means Taiwan cannot always send its most senior leaders, may face limitations on optics, and sometimes its interactions with other members are politically sensitive.

Nevertheless, Taiwan’s strategy of using multilateral, sector-driven, function-first engagement demonstrates that influence in global economic governance often lies in building capacity, networks and problem-solving credibility, beyond high-level visibility. For Taiwan, Apec is a platform through which it builds economic diplomacy, ties, and international legitimacy in practical rather than grandiose ways.

The Apec Summits may often be dominated in media coverage by big-power rivalries, trade spats and dramatic declarations. Within that, Taiwan has carved out a meaningful role: leveraging its strengths in technology, supply chains, and the digital economy; engaging across myriad technical forums; and building institutional presence that lasts, even when “eyes” are elsewhere.

In a region facing structural shifts—digital transformation, green transition, supply-chain re-engineering—Taiwan’s quiet but strategic engagement via Apec offers lessons in how mid-sized economies can exert influence, build partnerships and contribute to regional public goods. Its impact lies not just in being at the table but in bringing value to the table in ways that accumulate into real capacity and presence.

As Apec continues to evolve in the coming decade, Taiwan’s role also becomes more critical: bridging innovation and resilience, connecting regional supply chains, and demonstrating how an economy under diplomatic constraints can nonetheless shape outcomes—when it relentlessly focuses on substance over spectacle.

Taiwan’s main concern now should be that the next summit is in Shenzhen, China, and Beijing could place impediments on the participation of Taipei at the next Apec summit.

(The writer is a former ambassador to Germany, Indonesia, Ethiopia, Asean, and the African Union, and the author of ‘The Mango Flavour: India & Asean After 10 Years of the AEP’. The views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect the views of Firstpost.)