Taiwan emphasizes economic development in response to US-China trade friction

  • Date: 2018-03-29
  • Source: Department of Information Services, Executive Yuan

At Thursday’s weekly Cabinet meeting, Premier Lai Ching-te said the Executive Yuan will proceed in line with President Tsai Ing-wen’s economic directive in response to the growing trade friction between the U.S. and China and its possible effects on Taiwan and global markets. The remarks came following a presentation by the National Development Council on Taiwan’s response.

The president’s economic directive is fourfold: push for more local research, development and manufacturing; accelerate investment aimed at domestic demand; enhance Taiwan’s innovation prowess; and encourage local firms to target a wider array of countries for exports and overseas manufacturing. The government will also continue to promote the development and transformation of Taiwan’s economy, the premier said.

Related concrete measures to lessen the potential shock include continued assistance for local firms where necessary, help with shifting supply chains, and encouraging Taiwanese companies to redirect overseas investment back to Taiwan. Responsive strategies such as aiding domestic enterprises with efforts to upgrade technology, promoting production of critical components, expanding innovation capabilities, enhancing development of technology and protection for intellectual property, and implementing the “five plus two” innovative industries plan will also be pursued.

At the same time, the government will speed promotion of existing development initiatives—including the Forward-looking Infrastructure Development Program, energy transformation projects, urban renewal, social housing construction and the long-term care 2.0 plan—in order to create more business opportunities related to domestic demand. Promotion of the New Southbound Policy will also aid local businesses in diversifying markets and operations as a means of managing risk.