Taiwan has added China's Huawei and SMIC to its trade blacklist in a move that further aligns it with U.S. trade policy and comes amid tensions with Beijing.

Taiwan has hit AI companies based in China with an export ban that stops Taiwanese companies from supplying them with technology crucial to their operations.

Taiwan has emerged as one of the biggest winners in the current geopolitical and technological realignment. In May, the island’s exports surged 38.6% year-on-year to an all-time high of $51.74 billion—far exceeding the 25% gain forecasted by economists. This marks the 19th consecutive monthly rise and the strongest performance since 2010.