The National Stabilization Fund (NSF) yesterday announced that it would step in to staunch stock market losses for the ninth time in the nation’s history.
An NSF board meeting, originally scheduled for Monday next week, was moved to yesterday after stocks plummeted in the wake of US President Donald Trump’s announcement of 32 percent tariffs on Taiwan on Wednesday last week.
Board members voted to support the stock market with the NT$500 billion (US$15.15 billion) fund, with injections of funds to begin as soon as today.
Photo: Ritchie B. Tongo, EPA-EFE
The NSF in 2000 injected NT$120 billion to stabilize stocks, the most ever. The lowest amount it has injected was NT$760 million over 201 days in 2020.
At the legislature yesterday, lawmakers scheduled for Premier Cho Jung-tai (卓榮泰) to present a report on Friday on government measures to support businesses hit hard by the US tariffs.
The government plans to spend NT$70 billion on measures such as lowering loan interest rates, reducing administrative costs and expanding tax exemptions for the affected industries.
It would also be used to help enterprises diversify their markets, and invest in research and development, the Executive Yuan said.
Another NT$18 billion would be allocated to support the agricultural sector through loans, interest subsidies, equipment subsidies and other measures.
Speaking ahead of a meeting at the legislature, Minister of Foreign Affairs Lin Chia-lung (林佳龍) said that Taiwan would negotiate with the US at any time on the tariff issue.
Taiwan was singled out by Washington as among the US trading partners with the highest surpluses.
President William Lai (賴清德) on Sunday proposed a zero-tariffs regime with the US, and to invest more in the nation and remove trade barriers.
Lin yesterday said that Taiwan was ready to talk about a variety of issues with the US, including investment in and purchases from the US, as well as non-tariff barriers.
“As long as there is a confirmed time and method for negotiations, they can be discussed at any time,” he said.
White House economic adviser Kevin Hassett on Monday said that Taiwan had reached out to discuss the tariffs and Cho yesterday confirmed that Taiwan was one of those seeking talks and the government would choose an appropriate time to present Lai’s plans to the US.
“We definitely have a comprehensive plan, we have the right people, and we will be able to go and have positive negotiations,” he said.
The TAIEX, which logged its worst fall ever on Monday, fell another 4.02 percent yesterday and hit its lowest level in 14 months.
Although Monday’s drop was significant, the government was adequately prepared, Cho said.
The Executive Yuan, the Financial Supervisory Commission and the central bank have conducted extensive analysis of various scenarios, he said.
Cho also thanked the commission and the Taiwan Stock Exchange for announcing temporary response measures on Sunday to help maintain stock market stability.
Public response has indicated that the measures were helpful and deterred short selling, he said.
The American Chamber of Commerce in Taiwan in a statement yesterday expressed its concern about the tariffs, and called on Washington to exempt Taiwan from trade actions that could “jeopardize the stability and trust underpinning the US-Taiwan relationship.”
Additional reporting by Cho Yi-chun
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
RSS