- Island’s dependence on the mainland economy has exposed it to the twists and turns of the tit-for-tat trade battle
- US president’s global tariffs have hurt steel exports to US
Date: 16 November, 2018
By: Jun Mai
Numerous Asian economies linked to China’s fortunes are caught in the crossfire of the US-China trade war. But none might feel as voiceless as Taiwan.
The self-ruled island’s heavy dependence on the mainland economy has exposed it to the twists and turns of the tit-for-tat trade battle launched by US President Donald Trump months ago. But as a steel producer, it also is feeling the impact of Washington’s global steel and aluminium tariffs, which target China’s excess capacity in its steel sector, in particular.
Despite being a close military and security partner of the United States by law, Taiwan has limited diplomatic relations with Washington, mindful that any such exchange would anger Beijing, which considers the self-ruled island a breakaway province to be brought into line by force, if necessary.
A 24-year-old goods and services trade deal that is Taiwan’s only framework for an economic dialogue with the US was suspended last year amid problems filling vacancies for officials to administer the deal at the United States Trade Representative’s office as the trade war escalated. [FULL STORY]