It's important to understand that China does not want to fight a war over Taiwan, so if the Trump administration adheres closely to the One China Policy and resists forms of military provocation (e.g. sending troops to Taiwan or undertaking joint exercises with Taiwan), then it is likely that Beijing will continue to live with the status quo.

Taiwan will help companies relocate production from China given the likely large impact on them from tariffs incoming U.S. President Donald Trump has promised to impose on the country, Economy Minister Kuo Jyh-huei said on Thursday.

This development marks the opening salvo in an escalating rivalry that has simmered since the trade war began under the Trump administration.

Taiwan's economic minister says that the impact on manufacturing firms if Trump imposes tariffs will be “quite large.”