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The U.S. Department of Commerce recently announced that Taiwan's chip and technology firms will invest at least $250 billion in production capacity in the U.S., with Taiwan authorities guaranteeing the same amount in credit.

In return, the U.S. will lower "reciprocal" tariffs on Taiwan from 20 percent to 15 percent.

The Taiwan Affairs Office of the State Council says recent trade talks are really the U.S. using tariffs as a weapon to pressure Taiwan into massively increasing U.S. investments – putting its key industries at risk.

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Taiwan Affairs Office slams U.S. 'trade bullying' over chip investments