Tariff negotiations with the US have entered their final stage, with progress in sight after both sides reached a consensus on most issues, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said yesterday.
The government is waiting for a wrap-up meeting to conclude the talks, Kung told reporters before the ministry’s weekly business briefing.
As the US is finalizing agreements with other countries, the outcome of the negotiations with Taiwan might be announced alongside those of other trade partners, he said.
Photo: CNA
Turning to economic growth, Kung said that full-year GDP for last year might surpass the 3.54 percent forecast by the Directorate-General of Budget, Accounting and Statistics (DGBAS) in November.
Robust artificial intelligence (AI) demand supporting semiconductors and AI servers shipments was the top economic driver, while some traditional industries face structural challenges, he said.
The ministry has allocated NT$46 billion (US$1.46 billion) from Special Act for Strengthening Economic, Social and National Security Resilience in Response to International Circumstances (因應國際情勢強化經濟社會及民生國安韌性特別條例) funding of NT$570 billion to help the traditional sector, he said.
Since August, the ministry has received about 2,600 applications for the funds, Kung said, adding that the government aims to support traditional industries through policy tools to improve the overall industrial structure this year.
The main challenge for traditional industries lies in oversupply in China, which has fueled price competition amid persistently weak domestic demand in China, he said.
As it remains unclear when the oversupply situation would ease, Taiwanese companies must shift toward differentiation, including through improving product quality and information security capabilities, and boosting efficiency through digitalization, he said.
Firms should also target niche markets with high certification requirements, where competition is not driven solely by price, to avoid “red ocean” competition, he said.
The government aims to use the special budget to improve the resilience of traditional industries over the next two years, he said.
Kung said that he is “slightly optimistic” about Taiwan’s investment and economic outlook this year, citing sustained export demand and robust industrial investment.
From January to November last year, Taiwan’s overseas investment approved by the ministry totaled US$36.3 billion, down from the same period a year earlier, he said.
DGBAS data showed that total domestic investment grew 10 percent last year after adjusting for price increases, with investments focused on advanced technologies, meaning overseas investment has not crowded out local investment, Kung said.
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