A major local trade group yesterday pressed the government to assess the potential effects of China’s probe of Taipei-imposed trade barriers, as Taiwan’s agricultural and textile products cannot compete with the cutthroat prices of Chinese counterparts.
The Third Wednesday Club, at which membership is limited to the top 100 firms in each business sector, made the request during its monthly gathering in Taipei.
“The government should take action to gain a better grasp of the investigation and see which sectors would be affected,” Third Wednesday Club chairman Lin Por-fong (林伯豐) said.
Photo: CNA
Policymakers should then come up with response measures, and provide necessary and timely help for affected companies and sectors, said Lin, who is chairman of Taiwan Glass Industry Corp (台灣玻璃).
China launched the probe into Taiwan’s trade barriers on more than 2,400 Chinese product types, mainly products from the agricultural, textile and mineral sectors, after the Chinese Ministry of Commerce said it received complaints from Chinese trade groups.
China plans to conclude the investigation by Oct. 12, but might extend it by three months to Jan. 12 next year. It was not known when the results of the investigation would be unveiled.
Taiwan’s agricultural and textile products cannot afford to participate in a price war with cheap Chinese goods, Lin said.
Beijing is apparently seeking to take action against Taiwan based on WTO rules, in which Taiwan and China are members, he said.
The investigation could deal a heavy blow to Taiwanese makers of agricultural, textile, mineral and chemical products, he said.
“The government should sit down and talk with China to iron out bilateral economic and political differences,” Lin said.
If things fail to improve, the government can help affected companies by easing their energy and labor costs, and tax burdens, he said.
Policymakers can loosen the cap on migrant workers, lifting it to 45 percent from 40 percent, and extend their maximum stay to 14 years from 12 years to mitigate labor costs, Lin said.
Relief of business, corporate income and sales taxation, as well as electricity and land price discounts would also help, he said.
Firms have had difficulty acquiring industrial land to build facilities and the government can help make idle industrial plots at industrial parks more accessible, he added.
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