The US updated its Taiwan factsheet, removing the phrase "we do not support Taiwan independence" while endorsing Taiwan’s global participation. This shift drew support from Taiwan but strong opposition from China. The Taiwan Relations Act (1979) continues to strengthen US-Taiwan ties through trade, cultural exchange, and defensive arms sales, despite Beijing’s objections.
Taiwan holds immense geopolitical importance, as the Taiwan Strait is a crucial global shipping route, and the island produces over 60% of the world's semiconductors and 90% of advanced chips, making it vital to the global tech industry. China insists on the "One China Policy," viewing Taiwan as an inseparable part of its territory, while Taiwan operates as a self-governing democracy. India also recognizes the One China Policy and, in 2003, acknowledged Tibet as part of China in a joint declaration.