President Tsai Ing-wen (蔡英文) yesterday spoke out against a proposal by Kaohsiung Mayor Han Kuo-yu (韓國瑜) to establish a free economic zone in the city, saying it could cause Chinese goods to be mistaken for Taiwanese goods.
If a free economic zone made it unclear whether US-bound goods were Taiwanese or Chinese, the effect on Taiwan from the US-China trade dispute would be greater than elsewhere, so the government is opposed to a free economic zone, Tsai said.
The US-China trade dispute could affect the entire global economy if not reined in, she said.
Photo: Wang Chieh, Taipei Times
Trump on Sunday said that he was considering increasing tariffs on US$200 billion of Chinese goods in response to slow negotiations.
The government was constantly preparing response measures to changes in the global economy, Tsai said.
The most crucial task would be to encourage Taiwanese businesses to bring production back to the nation so that it could export more Taiwanese goods, not Chinese goods, she said.
This would be the best way to avoid high tariffs imposed on China by the US, she said.
Bringing Chinese goods into Taiwan through a free economic zone would tie Taiwan to China’s economy and turn Chinese goods into Taiwanese goods, she said.
“Just as the US-China trade dispute is heating up, there are actually politicians who want to import Chinese tea and process it here so that it becomes ‘Taiwanese tea,’” Tsai said.
Doing so would harm the good reputation that Taiwanese products have and invite retaliation from the US, she said.
Taiwanese would not accept such a scenario, she said.
Taiwan has expanded production and demand for local products domestically and globally, she said, adding that to set up a free economic zone would be a step backward.
Separately yesterday, Han said he was happy to see the issue of free economic zones being discussed.
If the Executive Yuan is planning to promote the idea, he hopes they would “prioritize Kaohsiung and give the city a chance,” Han said at a Kaohsiung City Government question-and-answer session.
His hope was to increase competitiveness by lowering tariffs, and easing restrictions would help accomplish this, he said.
Concerns about Chinese goods being confused for Taiwanese goods were just “one angle,” Han said, adding that the government should test the idea in Kaohsiung.
Although his comments regarding free economic zones might differ from the ideas of economists, hopefully the Executive Yuan would “give Kaohsiung a chance,” he said, adding that he hopes the city would “turn over a new leaf” economically by implementing the idea.
Taiwan is projected to lose a working-age population of about 6.67 million people in two waves of retirement in the coming years, as the nation confronts accelerating demographic decline and a shortage of younger workers to take their place, the Ministry of the Interior said. Taiwan experienced its largest baby boom between 1958 and 1966, when the population grew by 3.78 million, followed by a second surge of 2.89 million between 1976 and 1982, ministry data showed. In 2023, the first of those baby boom generations — those born in the late 1950s and early 1960s — began to enter retirement, triggering
ECONOMIC BOOST: Should the more than 23 million people eligible for the NT$10,000 handouts spend them the same way as in 2023, GDP could rise 0.5 percent, an official said Universal cash handouts of NT$10,000 (US$330) are to be disbursed late next month at the earliest — including to permanent residents and foreign residents married to Taiwanese — pending legislative approval, the Ministry of Finance said yesterday. The Executive Yuan yesterday approved the 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). The NT$550 billion special budget includes NT$236 billion for the cash handouts, plus an additional NT$20 billion set aside as reserve funds, expected to be used to support industries. Handouts might begin one month after the bill is promulgated and would be completed within
NO CHANGE: The TRA makes clear that the US does not consider the status of Taiwan to have been determined by WWII-era documents, a former AIT deputy director said The American Institute in Taiwan’s (AIT) comments that World War-II era documents do not determine Taiwan’s political status accurately conveyed the US’ stance, the US Department of State said. An AIT spokesperson on Saturday said that a Chinese official mischaracterized World War II-era documents as stating that Taiwan was ceded to the China. The remarks from the US’ de facto embassy in Taiwan drew criticism from the Ma Ying-jeou Foundation, whose director said the comments put Taiwan in danger. The Chinese-language United Daily News yesterday reported that a US State Department spokesperson confirmed the AIT’s position. They added that the US would continue to
The National Development Council (NDC) yesterday unveiled details of new regulations that ease restrictions on foreigners working or living in Taiwan, as part of a bid to attract skilled workers from abroad. The regulations, which could go into effect in the first quarter of next year, stem from amendments to the Act for the Recruitment and Employment of Foreign Professionals (外國專業人才延攬及僱用法) passed by lawmakers on Aug. 29. Students categorized as “overseas compatriots” would be allowed to stay and work in Taiwan in the two years after their graduation without obtaining additional permits, doing away with the evaluation process that is currently required,
RSS