Beyond AIT “Director”: Institutionalizing the U.S. “Representative” in Taiwan
Taiwan’s main opposition party, the Kuomintang (KMT), Deputy Chairman Hsiao Hsu-tsen sparked controversy after referring to American Institute in Taiwan (AIT) Director Raymond Greene as holding a position “only slightly higher than that of a section chief.” The remarks followed Greene’s support for President Lai Ching-te’s proposed eight-year, NT$1.25 trillion (nearly US$40 billion) special defense budget and came shortly after Hsiao met Chinese People’s Political Consultative Conference (CPPCC) Chairman Wang Huning in Beijing on February 4, where Hsiao echoed the Chinese Communist Party’s (CCP) “rejuvenating the Chinese nation” narrative.
In response, a U.S. State Department spokesperson reaffirmed that under the Taiwan Relations Act, the AIT Director serves as the Secretary of State’s representative in Taiwan, holds the rank equivalent to a chief of mission, and fully represents the U.S. government.
Why It Matters
The controversy exposes a structural weakness in the U.S.–Taiwan framework: although the AIT Director serves at an ambassador-equivalent level in practice, the role does not carry a title commensurate with that rank, nor does it require Senate confirmation, leaving room for rhetorical downgrading.
As Beijing increasingly deploys gray zone tactics, including lawfare and narrative manipulation, to marginalize Taiwan — a concern also underscored during the House Select Committee on the CCP’s February 11 hearing — such ambiguity risks reinforcing narratives that weaken the perceived strength and legitimacy of U.S.-Taiwan relations.
Congressional Attention
The U.S. and Taiwan currently have an “unofficial” relationship, and Congress has long sought to “normalize” the institutional framework of U.S.-Taiwan engagement, including the status of the AIT Director.
Then–Sen. Marco Rubio (R-FL), now Secretary of State, introduced the bipartisan Taiwan Relations Reinforcement Act of 2020, 2021, and 2023 with Sen. Jeff Merkley (D-OR). Beyond supporting Taiwan’s international participation and countering the People’s Republic of China (PRC) influence operations, a key provision would:
- Elevate the title of the AIT Director to “Representative”; and
- Require the appointment of the AIT Director to be subject to Senate advice and consent, consistent with the requirements for all U.S. ambassadors.
The current iteration, S.1588, introduced by Sens. Jeff Merkley and John Curtis (R-UT) in May 2025, continues these efforts. The legislation also prohibits any U.S. government department or agency from recognizing the PRC’s claims to sovereignty over Taiwan without the explicit assent of the people of Taiwan, as expressed through the democratic process.
Implications
The Formosan Association for Public Affairs (FAPA) has long advocated for the Taiwan Relations Reinforcement Act, having played an instrumental role in the inclusion of language to elevate the AIT Director’s status and require Senate confirmation, through cooperating with the offices of former Sen. Rubio and Sen. Merkley.
At a time of intensifying PRC military pressure and political coercion, clarity and credibility in U.S. representation are essential to sustaining deterrence and policy stability. Reflecting heightened concern in Washington, 37 members of the Senate and House signed a rare bipartisan and bicameral letter on February 12, urging Taiwan’s Legislative Yuan — where opposition parties currently hold a majority — to pass the proposed special defense budget, warning that partial funding could weaken deterrence against growing PRC aggression.
Sources:
[1] Taipei Times [2] Focus Taiwan [3] Taiwan News [4] House Select Committee on the CCP [5] Taiwan Relations Reinforcement Act of 2020, 2021, and 2023 [6] S.1588 (Taiwan Relations Reinforcement Act) [7] Office of Sen. Jeff Merkley [8] Letter led by Sens. Pete Ricketts and Chris Coons, along with Reps. Young Kim and Ami Bera
House Passes “PROTECT Taiwan Act” to Bolster Financial Deterrence
On February 9, the U.S. House of Representatives overwhelmingly passed the “Pressure Regulatory Organizations To End Chinese Threats to Taiwan Act” or “PROTECT Taiwan Act” (H.R.1531) by a 395–2 vote, demonstrating strong bipartisan support for imposing financial sanctions if China escalates aggression against Taiwan.
Introduced by Reps. Frank Lucas (R-OK) and Vicente Gonzalez (D-TX), the bipartisan PROTECT Taiwan Act would require the Department of the Treasury, the Federal Reserve, and the Securities and Exchange Commission (SEC) to take all necessary steps to seek China’s exclusion from the activities of six specified international financial institutions — including the G20, the Bank for International Settlements, and the Financial Stability Board — if China’s actions directly threaten Taiwan’s security, economic system, or social system, and pose a danger to U.S. interests.
Why It Matters
House Financial Services Committee Chairman French Hill (R-AR) stated on the House floor that the PROTECT Taiwan Act ensures significant financial and diplomatic consequences if China invades Taiwan, making it clear that Beijing’s aggression “will not and is not tolerated.”
Bill sponsor Rep. Frank Lucas stressed that “The United States’ response to an invasion of Taiwan should be robust and include numerous sanctions and economic penalties. Exclusion from international bodies must be part of that response.”
Congressional Taiwan Caucus Co-Chair Rep. Greg Stanton (D-AZ) said the CCP should not benefit from global systems if it threatens its neighbors, emphasizing that the U.S. “must be firm, consistent, and focused on maintaining peace in the region.”
Congressional Attention
Ensuring that China would face swift and severe economic and diplomatic consequences if it moves against Taiwan has been a consistent congressional effort to reinforce U.S. commitments to Taiwan through credible deterrence. Notable measures during the 119th Congress include:
- The Deter PRC Aggression Against Taiwan Act (S.2960), sponsored by Sen. Jim Risch (R-ID), was advanced by the Senate Foreign Relations Committee (SFRC) in October 2025.
- The STOP China and Russia Act (S.2657), sponsored by Sen. Jeanne Shaheen (D-NH), was reported by the SFRC in October 2025.
- The Taiwan Conflict Deterrence Act (H.R.1716), sponsored by Rep. Lisa McClain (R-MI), passed the House in July 2025.
Beyond legislative action, Congress has also continued to elevate Taiwan-related concerns through hearings and oversight. On February 11, the House Select Committee on the CCP held a hearing titled “Lies, Lawfare, and Leverage: The CCP’s Gaslighting and Manipulation to Marginalize Taiwan,” where Rep. Ro Khanna (D-CA) made his debut as Ranking Member and urged bipartisan efforts to press the administration for more clarity to guarantee Taiwan’s security.
Implications
With House passage secured, the PROTECT Taiwan Act has been received in the Senate. If passed and enacted, it will formalize a legal requirement for U.S. financial authorities to pursue China’s exclusion from key international financial forums during a cross-Taiwan Strait crisis.
Sources:
[1] Focus Taiwan [2] H.R.1531 (PROTECT Taiwan Act) [3] Office of Rep. Frank Lucas [4] Taipei Times [5] Office of Rep. Frank Lucas [6] Rep. Greg Stanton’s official X account [7] S.2960 (Deter PRC Aggression Against Taiwan Act) [8] S.2657 (STOP China and Russia Act) [9] H.R.1716 (Taiwan Conflict Deterrence Act) [10] House Select Committee on the CCP – Democrats
U.S. and Taiwan Sign Historic Agreement on Reciprocal Trade
The United States and Taiwan signed the U.S.-Taiwan Agreement on Reciprocal Trade (ART) on February 13 in Washington, marking a major step toward deepening bilateral investment and commercial opportunities. The Office of the U.S. Trade Representative (USTR) stated that the agreement strengthens supply-chain resilience and expands opportunities for American farmers, ranchers, and manufacturers, as Taiwan opens near-full market access for U.S. agricultural and industrial exports.
Trade Pact Highlights
U.S. Commitments:
- Reduce reciprocal tariffs on Taiwanese imports from the previously imposed 20% to a maximum of 15% without “stacking” on top of Most-Favored-Nation (MFN) tariff rates;
- Grant Taiwanese semiconductors and related products the most-favorable treatment under Section 232 of the Trade Expansion Act; and
- Subject an additional 2,072 Taiwanese items (261 agricultural and 1,811 industrial products) only to MFN rates by exempting them from reciprocal tariffs.
- Eliminate or reduce 99% of tariffs on U.S. industrial and agricultural imports;
- Remove import quotas on motor vehicles that conform to U.S. Federal Motor Vehicle Safety Standards (FMVSS);
- Recognize U.S. FDA marketing approvals for U.S.-made medical devices and pharmaceuticals without additional import requirements; and
- Address non-tariff barriers affecting U.S. beef, pork, poultry, processed potatoes, and bison meat.
Call For Congressional Action
Despite the success of the U.S.-Taiwan tariff negotiations, the Formosan Association for Public Affairs (FAPA) underscored that the absence of a U.S.-Taiwan double taxation agreement remains a critical structural challenge in the economic and trade relationship. This gap imposes unfair tax burdens — with effective tax rates on U.S. profits as high as 51% — on Taiwanese businesses in the United States.
FAPA National President Dr. Su-Mei Kao called for the Senate passage of the U.S.-Taiwan Expedited Double-Tax Relief Act (H.R.33 & S.199), which passed the U.S. House 423–1 in January 2025. Dr. Kao noted that this legislation would create a multiplier effect alongside recent tariff-related success, significantly reducing the tax burden for Taiwanese enterprises and workers in the U.S., and urged the Senate to capitalize on this strong momentum and pass the bill without delay.
Sources:
[1] Taipei Times [2] Office of the U.S. Trade Representative (USTR) [3] USTR’s Official X account [4] USTR’s Official X account [5] Focus Taiwan [6] Focus Taiwan [7] Taipei Times [8] Formosan Association for Public Affairs (FAPA) [9] H.R.33 & S.199 (U.S.-Taiwan Expedited Double-Tax Relief Act)
