The Taiwan Fellowship Act (“TFA” or the “Act”) is a strategic initiative designed to enhance U.S.-Taiwan cooperation by fostering mutual understanding and collaboration between the two nations. Dan Silver, AmCham Chairperson, emphasized the Act’s importance at recent key events, noting its role in promoting deeper bilateral relations.

I.           Overview of the TFA

The TFA, modeled after the successful Mansfield Fellowship with Japan, aims to allow “up to ten (10) U.S. career civil servants to undertake a year of Mandarin language training followed by a year of professional placement with Taiwanese government agencies or NGOs”. [1]  In some circumstances, placements outside the public sector are also possible.[2]  The TFA requires fellows to:  (a) have two (2) years of experience in any branch of the U.S. government and (b) commit to four (4) years of continued government service at the conclusion of their fellowship.[3]

Despite bipartisan support and President Biden signing the Act into law in 2022, implementation has slowed, particularly around Taiwan’s 2024 presidential election. However, the Act continues to garner strong backing from both countries’ legislatures.[4], [5]

II.        Importance of the TFA

As mentioned above, U.S. Congress based the TFA on the successful Mansfield Fellowship between the U.S. and Japan.  Based on an evaluation of the Mansfield Fellowship published by the U.S. Department of State, there are realistically high expectations that the TFA will:  (a)  provide U.S. government agencies a go-to person for cultural insights, geopolitical insights, language needs, or regulatory understanding,[6] essentially creating Taiwan experts within the U.S. government and (b) create a pool of U.S. experts who move into private sector roles related to Taiwan after they finish government service.[7]

A.         New Taiwan experts in the U.S. Government

On the public sector side, in addition to the quantitative benefit of producing more Taiwan experts in the U.S. government, the TFA will also bring a needed qualitative shift in these experts.  Prior to China opening to the U.S., an entire generation of civil servants, China experts, and businesspeople received language training and education in Taiwan.  Throughout their careers, this “old guard” had a cross-strait understanding of China-Taiwan relations.  Much of the “new guard” of China and Taiwan experts has received education and language training in China.  This has resulted in many professionals with Chinese training no longer having a balanced understanding of cross-strait relations as did their predecessors.[8]  A primary goal of the TFA is to reconstruct U.S. government officials’ cross-strait perspective based on a deeper understanding of Taiwanese government, society, and business.

B.         Expanded U.S. private Taiwan-focused talent pool

In addition to any public sector benefits the TFA may provide, the growth it would spur in the U.S. private talent pool working in or with Taiwan would be invaluable.

Taiwan is not only important globally, but particularly important for the U.S. A singular example of the importance of U.S.-Taiwan economic ties is the Taiwan Semiconductor Company (“TMSC”) project to build three semiconductor factories in Arizona, an investment of $65 billion U.S. dollars.  TMSC produces 95% of the world’s most sophisticated chips, essential to the production of defense products, computers, cars, phones, and many other products on which American industries heavily rely.[9]

The TSMC example aside, Taiwan is the U.S.’s eight-largest goods trading partner, ranking ahead of BRICS members India and Brazil.[10]  And, the reliance goes both ways: 22.8% of Taiwan’s agricultural imports come from the U.S.[11]  Taiwan is a frequent recipient of U.S. military aid,[12]  and the U.S. is a major investor in and consumer of Taiwanese products.[13]

In short, the TFA represents a significant step towards bolstering U.S.-Taiwan cooperation.  By facilitating the exchange of expertise and fostering mutual understanding, the TFA can contribute to stronger economic and diplomatic ties, benefiting both nations.  We look forward to renewed energy and effort to implement the TFA.

If you are interested in learning more about the topics discussed in this article, or if you need assistance obtaining authorization to live, work or do business in Taiwan, whether as a foreign national or corporation, please contact Greg Buxton at gbuxton@winklerpartners.com.

Written by Greg Buxton, Chi-hsien Nieh, and Jack Wolthuis.

[1] Taiwan Business TOPICS, “Implement the Taiwan Fellowship Act”; available at https://topics.amcham.com.tw/2024/03/implement-the-taiwan-fellowship-act/.

[2] 22 U.S. Code § 3384(d)(2)(B), available at https://www.law.cornell.edu/uscode/text/22/3384.

[3] Id. at § 3384(e)(1)(C).

[4] Talking Taiwan Podcast Episode 189, “Why You Should Care About the Taiwan Fellowship Act”.

[5] Taiwan may develop a similar program for its civil servants to gain experience in the U.S., enriching their understanding of American government and business practices.  Supra note 2.  Such a program would give Taiwanese officials invaluable experience in American government and business.

[6] Id. at 27.

[7] Id. at 57.

[8] Supra note 6.

[9] 10 Messages to Washington in Taiwan Business TOPICS, “2024 White Paper”; available at https://amcham.com.tw/wp-content/uploads/2024/06/2024-White-Paper.pdf.

[10] Id.

[11] Taipei Economic and Cultural Representative Office in the United States, “Agricultural trade between Taiwan and the U.S.”; available at https://www.roc-taiwan.org/us_en/post/8611.html.

[12] See, e.g., Focus Taiwan, “U.S. House passes bill with US$500 million in military aid for Taiwan”; available at https://focustaiwan.tw/politics/202406290003.

[13] CommonWealth Magazine, “Why U.S. Companies are still Betting Big on Taiwan”; available at https://english.cw.com.tw/article/article.action?id=3726.