Taiwan Allies Fund Act (Not yet reintroduced in 119th Congress)
The People’s Republic of China (PRC) has undertaken systemic efforts to diplomatically isolate Taiwan. Beijing frequently uses bribes, economic incentives—such as loans, investments, and trade benefits—and overt coercion to lure or compel other nations into severing official ties with Taiwan in favor of China.
From 2013 to 2024, Taiwan lost 11 diplomatic allies to the PRC. In January 2024, Nauru switched its diplomatic ties to China after receiving promises of “development opportunities,” reducing Taiwan’s formal allies to just 12.
Meanwhile, the PRC has increasingly weaponized trade and economic ties to pressure other nations into adopting a more pro-China foreign policy and even punish those seeking closer unofficial ties with Taiwan. For example, Lithuania faced severe retaliation from China, including a de facto trade embargo, after strengthening its relations with Taiwan.
The “Taiwan Allies Fund Act” seeks to counter PRC economic coercion against Taiwan’s allies and bolster Taiwan’s global presence, including its participation in international organizations. The Act would strengthen Taiwan’s global network of partners by authorizing funds for the U.S. State Department and USAID to provide foreign assistance to Taiwan’s official and unofficial allies facing China’s coercion and pressure.