The Ministry of Economic Affairs yesterday said it would help businesses convey their concerns about the labor shortage in inter-agency talks as adjustments are being made in response to the US-China trade war.
The ministry would explore possible remedies to the nation’s workforce shortage with the Ministry of Labor, Minister of Economic Affairs Shen Jong-chin (沈榮津) told a news conference in Taipei.
“We will discuss whether there is any wiggle room to ease rules on hiring migrant workers,” Shen said.
Migrant workers are the bedrock of Taiwan’s workforce and an important complement to the ranks of Taiwanese workers, Shen said.
The labor shortage ranks first among the nation’s “five industrial shortages,” which include power, water, land and talent, Shen said.
Many companies that have moved to China have left idle manufacturing facilities in Taiwan, in Hsinchu Science Park (新竹科學園區) in particular, but the lack of labor limits the prospect of reactivating those facilities, Shen said.
Contract electronics manufacturers have established production bases in other markets as China’s attractiveness diminishes amid rising labor costs and environmental standards, Shen said, adding that these trends were present before the onset of the trade war.
Companies such as Compal Electronics Inc (仁寶) and Wistron Corp (緯創) have diversified into Vietnam and India respectively, he said.
Still, companies that rely on the Chinese supply chain would need to meet the 35 percent value-added content requirement for Taiwanese re-exports to the US, Shen said.
The administration of US President Donald Trump on Monday announced that it would proceed with a 10 percent tariff on US$200 billion of Chinese imports, to become effective on Monday next week, with the tariff to increase to 25 percent on Jan. 1 next year.
Shen said that the scope of the tariff has been reduced from 6,031 to 5,745 items, including smartwatches and bluetooth-connected devices and apparel, but sparing some of Apple Inc’s Taiwanese suppliers.
The trade war will not only have negative effects, Shen said, adding that some Taiwanese suppliers — including those that make hand tools, nuts and bolts, and silicon batteries — have seen a boost as US tariffs have dampened their rivals’ competitiveness.
“A product must have at least 35 percent local content or undergo key manufacturing processes in Taiwan to be labeled as ‘Made in Taiwan,’” Shen said.
The government has also improved efforts to verify imports-exports to prevent Taiwan from being used as a springboard to evade US tariffs on Chinese goods, Bureau of Foreign Trade Deputy Director-General William Liu (劉威廉) said.
Violations would have untold effects, Liu added.
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