TAIPEI (Taiwan News) — Taiwan’s Chinese National Federation of Industries (CNFI) published its 2024 white paper on Friday (Sept. 20), outlining four major economic issues facing Taiwan.
CNFI Vice Chair Chen Chin-tsai (陳進財) at a press conference said firstly, the imbalance in Taiwan’s industry exacerbates the M-shaped economic phenomenon, which means the gap between the rich and poor is growing, per CNA. While the information and communication technology (ICT) industry is rapidly developing, industries like metals, electrical machinery, and consumer chemicals lag behind.
Secondly, the vice chair said the government should strengthen the resilience of the power and water infrastructure, per UDN. Addressing energy issues early is crucial to support the energy-intensive AI industry.
Thirdly, Chen said rising geopolitical risks are affecting businesses’ cross-strait and global operations. He cited China’s recent suspension of Economic Cooperation Framework Agreement (ECFA) preferential tariffs and US export controls on high-tech products as examples.
Finally, regarding net zero, Chen said carbon fees in Taiwan are imminent. Without sufficient support, this could lead to unfair competition between domestic industries and imports, he cautioned.
To build a healthy industrial ecosystem, Chen suggested efforts in three areas: assisting traditional industry transformation, reforming outdated tax systems, and fostering an environment for innovation. With tax revenue exceeding expectations in recent years, Chen said the government should not disregard this proposal.