TAIPEI (Taiwan News) – With trade tensions between the U.S. and China escalating, Taiwan will adopt a two-pronged approach to assist affected industries, including efforts to ensure a smooth transfer of their production lines from China back to Taiwan or southward, Minister of Economic Affairs Shen Jong-chin (沈榮津) said Thursday.
As the U.S. is set to hit US$200 billion-worth of imports from China with a hike in tariffs from 10 percent to 25 percent, Shen remarked that Taiwanese businesses whose end market is the U.S. are most likely to bear the brunt of the impact, such as internet and telecommunication services providers, bicycle manufacturers, machinery producers, and petrochemical product suppliers, reported the Liberty Times.
In response to the brewing crisis between the world’s two largest economies, the Ministry of Economic Affairs said it would provide adequate aid to businesses planning to move their production bases back to Taiwan. Shen elaborated that the government will help the businesses address the “five shortages,” namely the lack of water, electricity, land, factories, and talent.
For Taiwanese businesses adopting the practice of offshoring due to such factors as land, labor, environmental concerns, or cost, and which have not yet prepared for an industry upgrade, the MOEA will assist them to relocate to New Southbound Policy countries, the report quoted Shen as saying.
A task force dedicated to figuring out solutions in the face of the U.S.-China trade conflict was established on July 17 by MOEA, Shen reckoned, adding that the unit will provide answers to industry woes regarding production base transfer, tariff barrier removal, competitiveness enhancement, and prevention of illegal transshipment and dumping, Liberty Times wrote.