In 2025, debates in Japan over defense and economic security have intensified once again. The long-circulated view within policy circles that “a Taiwan contingency is a Japan contingency” has taken on new strategic significance amid the formation of a new cabinet and shifts in the global landscape. Sanae Takaichi went a step further, suggesting that “a Taiwan contingency could also become a global contingency,” effectively placing Taiwan at the center of international political and economic discourse.
The attention her statement garnered stems not from its forceful tone but from the structural realities it reflects. The post-pandemic reconfiguration of supply chains, deepening technological interdependence, and the strategic importance of energy routes all converge on Taiwan. The island is no longer merely a region that could be affected by global tensions; it has become a crucial node whose stability directly influences the functioning of markets worldwide.
Japan’s remarks should therefore not be read as diplomatic rhetoric. They mirror a broader shift in how the international community assesses Taiwan’s capabilities and vulnerabilities. Taiwan’s role within the global economic order is being redefined, and its significance today is clearer—and greater—than ever.
Taiwan Now Stands at the Frontline of the International Economic Order
Japan’s discussion of a “Taiwan contingency” is driven not only by geopolitical concerns but by a structural understanding of economic security. Modern supply chains have evolved into an integrated system built on cross-border networks, critical technological nodes, and strategic energy routes. Any disruption in Taiwan sends ripples through this entire system almost instantly.
Japan is particularly alert to these dynamics. Its heavy dependence on imported energy means that crucial transport routes running through the waters surrounding Taiwan are essential to national stability. Its manufacturing base—especially semiconductors and electronic components—is tightly linked to Taiwan’s output. A significant share of key parts used in AI hardware, automotive electronics, and next-generation energy technologies also originate from Taiwanese suppliers. These layers of interdependence make the stability of Taiwan a direct and tangible factor in Japan’s economic functioning.
In this context, Japan’s signal aligns with a broader global perception. The governance standards of Taiwanese companies, the transparency of their disclosures, their ability to collaborate across borders, and the tempo of their decision-making in international markets are increasingly viewed as indicators of reliability. Entering the Japanese market is no longer a routine step in overseas expansion; it represents participation in a core environment shaped by industrial policy and supply-chain security. How Taiwanese companies present themselves in this landscape has become a focal point of international attention.
Japan is particularly alert to these dynamics. Its heavy dependence on imported energy means that crucial transport routes running through the waters surrounding Taiwan are essential to national stability. Its manufacturing base—especially semiconductors and electronic components—is tightly linked to Taiwan’s output. A significant share of key parts used in AI hardware, automotive electronics, and next-generation energy technologies also originate from Taiwanese suppliers. These layers of interdependence make the stability of Taiwan a direct and tangible factor in Japan’s economic functioning.
In this context, Japan’s signal aligns with a broader global perception. The governance standards of Taiwanese companies, the transparency of their disclosures, their ability to collaborate across borders, and the tempo of their decision-making in international markets are increasingly viewed as indicators of reliability. Entering the Japanese market is no longer a routine step in overseas expansion; it represents participation in a core environment shaped by industrial policy and supply-chain security. How Taiwanese companies present themselves in this landscape has become a focal point of international attention.
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Amid Supply-Chain Realignment and Geopolitical Shifts, Taiwanese Companies Must Rethink Their Strategic Positioning
- Taiwan’s Self-Perception Is Falling Behind Global Expectations: Global attention and reliance on Taiwan continue to grow, yet many Taiwanese companies still view themselves through the lens of a “small and medium enterprise nation.” This self-perception increasingly diverges from the realities of a rapidly changing international supply chain. As global industrial realignment accelerates, companies that persist in using old frameworks to define themselves will struggle to secure a stable position within the emerging economic structure. Japan’s emphasis on a “Taiwan contingency” serves as an indirect reminder to Taiwanese businesses: the world has already placed Taiwan at the center of critical supply networks. Whether Taiwanese companies can sustain this position depends on how fully they develop the institutional capacity and organizational competence required by this new reality.
- Governance Capability Has Become the Common Language of Cross-Border Cooperation: To be regarded as a reliable partner, institutional strength is indispensable. Transparent financial information, clearly defined lines of responsibility, traceable processes, and internal controls aligned with international standards form the basic criteria by which global companies assess partnership risk. When Taiwanese companies can demonstrate stability through well-structured governance, business relationships naturally evolve from short-term transactions into long-term strategic linkages. Strong governance not only reduces uncertainty for partners but also provides the footing needed to maintain a solid position as global supply chains continue to be reshaped.
- Cross-Cultural Management Has Become a Core Component of Corporate Competitiveness: As collaboration between Taiwanese and Japanese companies deepens, differences in work culture and organizational habits have become increasingly visible. Japanese firms place strong emphasis on procedure, documentation, and consistency, while Taiwanese companies excel in flexibility and rapid response. Both approaches carry strengths, yet without careful coordination, these differences can accumulate into misunderstandings that undermine efficiency and trust. The ability to navigate and align cultural expectations is emerging as a key criterion for companies seeking to participate effectively in global supply chains. In the Japanese market in particular, the capacity to manage cross-cultural dynamics has become an important determinant of whether a Taiwanese company can strengthen its competitive position.
- Being Examined by the World Has Become the New Norm of Collaboration: Global supply chains now demand unprecedented levels of transparency and disclosure. Governments and major corporations increasingly treat audits, data quality, and sustainability reporting as integral components of risk management. In this environment, Taiwanese companies are expected to demonstrate operations that are both traceable and verifiable. This shift signals that Taiwanese firms have already moved into the core of global economic networks. Their ability to meet rising expectations will determine how firmly they can hold their position within international supply chains in the years ahead.
In the Global Supply Chain, Accounting Firms Have Become the Structural Backbone of Corporate Credibility
Within Taiwan–Japan and broader cross-border supply-chain collaborations, an often overlooked but essential factor is the quality of the institutional framework that supports a company. This is precisely where accounting firms exert meaningful influence. When multinational corporations assess potential partners, they look closely at whether internal controls are firmly in place, whether processes can be audited, whether major decisions are documented, and whether financial statements can withstand rigorous examination. These elements directly shape a company’s standing within global supply chains.
In the view of Japanese, European, and American corporations, “credibility” is not an abstract value; it is a tangible condition demonstrated through systems, documentation, and verifiable processes. As a result, helping companies build financial transparency, streamline their workflows, introduce internal-control frameworks, and manage cross-border tax and compliance documentation has become a central function of accounting firms in supporting international cooperation. With rising expectations around IFRS S1/S2, ESG disclosures, cross-border audits, and data verification, professional firms enable companies to elevate their internal systems from merely operational to globally comprehensible—giving Taiwanese firms a clear and credible voice on the international stage.
The role of the accounting profession therefore extends beyond regulatory compliance. It equips companies with a governance language recognized across markets and creates institutional pathways through which they can engage the world. This structural support allows Taiwanese businesses to maintain stability under heightened scrutiny and solidifies Taiwan’s position within the evolving architecture of the global economy.
In the view of Japanese, European, and American corporations, “credibility” is not an abstract value; it is a tangible condition demonstrated through systems, documentation, and verifiable processes. As a result, helping companies build financial transparency, streamline their workflows, introduce internal-control frameworks, and manage cross-border tax and compliance documentation has become a central function of accounting firms in supporting international cooperation. With rising expectations around IFRS S1/S2, ESG disclosures, cross-border audits, and data verification, professional firms enable companies to elevate their internal systems from merely operational to globally comprehensible—giving Taiwanese firms a clear and credible voice on the international stage.
The role of the accounting profession therefore extends beyond regulatory compliance. It equips companies with a governance language recognized across markets and creates institutional pathways through which they can engage the world. This structural support allows Taiwanese businesses to maintain stability under heightened scrutiny and solidifies Taiwan’s position within the evolving architecture of the global economy.
Taiwan’s New Global Position and the Strategic Shift Required of Its Companies
Taiwan’s role in the global supply chain has evolved from that of a regional manufacturing base to a critical node shaping the dynamics of the international order. Japan, the United States, and Europe are all recalibrating their policies to place Taiwan at the center of broader economic-security strategies. This shift reflects not a temporary fluctuation, but the long-term restructuring of the global economic-security architecture.
In this context, Taiwanese companies must reassess their place within the international system. They are no longer merely market participants; they have become integral actors supporting supply-chain stability and cross-border cooperation. Governance capability, internal controls, cross-cultural competence, and risk-management structures will determine whether Taiwanese firms can sustain—and extend—their influence over the next decade.
Taiwan now stands at the center of the global stage. This position was not conferred from outside but has emerged through the evolution of its industrial structure and international footprint. The task ahead is to reinforce this standing with more mature institutions, clearer governance logic, and a stronger ability to engage the world on equal terms—ensuring that Taiwan’s role remains firmly anchored in the global economic landscape.
In this context, Taiwanese companies must reassess their place within the international system. They are no longer merely market participants; they have become integral actors supporting supply-chain stability and cross-border cooperation. Governance capability, internal controls, cross-cultural competence, and risk-management structures will determine whether Taiwanese firms can sustain—and extend—their influence over the next decade.
Taiwan now stands at the center of the global stage. This position was not conferred from outside but has emerged through the evolution of its industrial structure and international footprint. The task ahead is to reinforce this standing with more mature institutions, clearer governance logic, and a stronger ability to engage the world on equal terms—ensuring that Taiwan’s role remains firmly anchored in the global economic landscape.