Though China will broaden macroeconomic controls to check an overheated economy, unless it revalues its currency upward no amount of controls will be effective, a senior official at the Council for Economic Planning and Development said.
The number of approved investments for China fell significantly in the first quarter, and this represented growing concerns among Taiwanese businesses over the worsening economic environment in China, Council Vice Chairman Thomas Yeh (葉明峰) said in an interview published in the Chinese-language Liberty Times yesterday.
According to the Ministry of Economic Affairs, 289 China-bound investment applications were approved in the first quarter, a drop of 47.83 percent from a year earlier. The total value of investments also dropped by 6.57 percent to US$1.21 billion.
Yeh saw this as a cooling of the China-investment fever that has gripped Taiwan. He attributed it to the macroeconomic controls that are necessary because of China's unbalanced economy, and also to China's failure to resolve problems over water and electricity supplies, as well as the unpredictability of the government.
All these factors have caused Taiwanese businesspeople to be more cautious when investing in China, he added.
This year, China has seen GDP growth of 9.5 percent. Analysts are expecting Beijing to impose more macroeconomic controls in response.
Yeh said that China has already been using such controls for a year now, but with little effect. He said this was largely because the value of the yuan has remained unchanged.
While other currencies have risen in response to the weakening US dollar, the yuan, which has been pegged to the US dollar at around 8.3 since 1995, remains stable. China has gained a significant advantage in its exports because of this, and has also accrued over US$600 billion in foreign currency reserves.
"The fact that the Chinese government won't let the yuan rise in value is unthinkable, it is immoral," Yeh said.
He added that China was using the fixed exchange rate and a surging trade surplus to earn foreign exchange.
Because this was impacting negatively on international markets, he said, it was hardly surprising that the US Congress warned China that it would levy anti-dumping taxes on Chinese goods if Beijing did not allow the yuan to appreciate.
Yeh suggested that China's behavior had not only led to international criticism, but was also hampering its efforts to bring its economy under control.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TARIFF TALKS: The US secretary of commerce is eyeing more than US$300 billion in investments and said Taiwan would train US workers, but Taipei has denied the latter US Secretary of Commerce Howard Lutnick said the US is expecting a large investment pledge from Taiwan in trade talks, while President William Lai (賴清德) listed areas that need improvement in order for projects to be completed. “We’re in the midst of discussions,” Lutnick said on Wednesday. “But the fact is, this administration’s goal is to bring semiconductor manufacturing to America.” Lai on Wednesday said Taiwan is supportive of US President Donald Trump’s goal of reindustrializing the US, including efforts to ramp up semiconductor production. Such a goal would require the US to reduce its reliance on Taiwan as a key source
The demise of the coal industry left the US’ Appalachian region in tatters, with lost jobs, spoiled water and countless kilometers of abandoned underground mines. Now entrepreneurs are eyeing the rural region with ambitious visions to rebuild its economy by converting old mines into solar power systems and data centers that could help fuel the increasing power demands of the artificial intelligence (AI) boom. One such project is underway by a non-profit team calling itself Energy DELTA (Discovery, Education, Learning and Technology Accelerator) Lab, which is looking to develop energy sources on about 26,305 hectares of old coal land in
Netflix on Friday faced fierce criticism over its blockbuster deal to acquire Warner Bros Discovery. The streaming giant is already viewed as a pariah in some Hollywood circles, largely due to its reluctance to release content in theaters and its disruption of traditional industry practices. As Netflix emerged as the likely winning bidder for Warner Bros — the studio behind Casablanca, the Harry Potter movies and Friends — Hollywood’s elite launched an aggressive campaign against the acquisition. Titanic director James Cameron called the buyout a “disaster,” while a group of prominent producers are lobbying US Congress to oppose the deal,
RSS