The Epoch Times
Date: July 15, 2018
By Paul Huang
Pedestrians cross a street lined with the signs of electronic brands in Taipei on Jan. 12, 2016. China has announced a whopping list of new economic benefits designed to lure Taiwanese businesses and individuals to the mainland. (Philippe Lopez/AFP/Getty Images)
WASHINGTON–Fallout from the U.S.-China trade war will not seriously affect Taiwan, which has spent a few years diversifying its economy away from the politically hostile mainland and investing into Southeast Asia, according to a Taiwanese trade official. The comment comes amidst concern by many that Trump’s escalating trade confrontation with Beijing could be economically damaging to U.S. allies in East Asia.
Earlier this week Washington announced it will impose new tariffs of 10 percent on US$200 billion worth of Chinese exports in September, in addition to the 25 percent imposed on US$34 billion announced earlier this month. The tariffs are part of the Trump administration’s broader pushback against what it sees as China’s unfair trade practices and decades of exploiting the global trade system.
The trade war sparks fear that other Asian nations will also be hit hard by the economic fallout, and some observers have gone as far as warningthat Taiwan “stands to lose the most.” Such observations are based on the common understanding that Taiwan’s economy relies heavily on trade with China and that U.S. tariffs will also hit hard Taiwanese businesses that export manufactured goods to other parts of the world.
Taiwan’s approach in dealing with any fallout from U.S.-China trade war is “don’t panic, but get ready,” according to Liu Shih-chung, vice chairman of the Taiwan External Trade Development Council (TAITRA), a trade promotion organization sponsored by the Taiwanese government.
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