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The government of President Tsai Ing-wen is keen to lure companies back to Taiwan. (Original photos by Getty Images and Kyodo)
The Big Story

Trade war traps Taiwan between two superpowers

G-20 'truce' seen as temporary as U.S. hard-liners lead talks

CHRIS HORTON, contributing writer, and LAULY LI and CHENG TING-FANG, Nikkei staff writers | Taiwan

TAIPEI -- Taiwan's largest companies have spent the past two decades building factories ever deeper into China, particularly in the Yangtze River and Pearl River deltas. Besides having a major impact on global supply chains, this push has left the economy of Taiwan deeply entwined with that of its large -- and, increasingly, antagonistic -- neighbor across the strait.

Yet there are growing signs that many of Taiwan's companies may soon begin to unwind that 20-year process by withdrawing from China, due in no small part to the U.S.-China trade dispute.

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