Taiwan could benefit from the reorganization of global supply chains due to its democratic government, Taiwan Academy of Banking and Finance president Su Jain-rong (蘇建榮) said.
Wu made the remarks in an interview with the Chinese-
language Liberty Times (the sister paper of the Taipei Times) that was posted online yesterday.
Photo: Chen Yu-jui, Taipei Times
Citing Academia Sinica member Cyrus Chu’s (朱敬一) book Ultimate Economic Conflict between China and Democratic Countries: An Institutional Analysis (價值戰爭：極權中國與民主陣營的終極經濟衝突), Su said that the global supply chain is, by and large, being restructured along the lines of the democratic and autocratic camps.
Following the US-China trade war and COVID-19 pandemic, many companies have pulled out of China and relocated supply chains to other countries, he said.
The restructuring effort, headed by the US, does not imply desinicization, he said, adding that it aims to promote “ally-shoring,” the relocation of manufacturing plants from China to other countries — mainly democratic and free ones.
Su cited the US-Taiwan Initiative on 21st Century Trade bill signed by US President Joe Biden in August last year as an example of “ally-shoring,” saying that Taiwanese businesses sending products to the US, of which manufacturing plants were previously based in China, have relocated these plants to Mexico under the restructured supply chain.
Taiwan’s small and medium-sized enterprises (SMEs) provide greater vitality and flexibility in investing compared with larger corporations, he said, adding that these SMEs could play an essential role in the global supply chain.
Countries in the Americas and Europe had hoped that China would begin to dial back authoritarian rule after an improvement of its economy following its inclusion in the WTO in 2001, but Beijing ended up “stealing” democratic countries of their intellectual properties and other technologies after becoming an economic powerhouse, Su said.
With Chinese President Xi Jinping (習近平) adopting a heavy-handed political approach, foreign companies are hesitant to continue investing in China, resulting in a shrinking production sector, reduced jobs and lower consumption, Su said.
China’s public and private-sector debt has reached 200 percent of its GDP over the past few years.
Local government debt is primarily due to real-estate bubbles and the inability to repay its debts has affected China’s overall financial system, Su said.
The People’s Bank of China is making a large amount of funds available in hopes that financial institutions would have sufficient capital on hand and avoid potential financial storms, he said.
Information opacity in China is another concern, as the nation’s issues could be severe and catch its neighbors off guard, he added.
Taipei has once again made it to the top 100 in Oxford Economics’ Global Cities Index 2025 report, moving up five places from last year to 60. The annual index, which was published last month, evaluated 1,000 of the most populated metropolises based on five indices — economics, human capital, quality of life, environment and governance. New York maintained its top spot this year, placing first in the economics index thanks to the strength of its vibrant financial industry and economic stability. Taipei ranked 263rd in economics, 44th in human capital, 15th in quality of life, 284th for environment and 75th in governance,
Control Yuan Secretary-General Lee Chun-yi (李俊俋) tendered his resignation last night, admitting that he had misused a government vehicle, as reported by media. His resignation was immediately accepted by the Control Yuan. In a statement explaining why he had resigned, Lee apologized for using a Control Yuan vehicle to transport his dog to a pet grooming salon on May 20. The issue first came to light late last month, when TVBS News reported that Lee had instructed his driver to take the dog to the salon. The news channel broadcast photos that it said were taken by an unnamed whistle-blower, which purportedly showed the
The Sports Administration yesterday demanded an apology from the national table tennis association for barring 17-year-old Yeh Yi-tian (葉伊恬) from competing in the upcoming World Table Tennis (WTT) United States Smash tournament in Las Vegas this July. The sports agency said in a statement that the Chinese Taipei Table Tennis Association (CTTTA) must explain to the public why it withdrew Yeh from the WTT tournament in Las Vegas. The sports agency said it contacted the association to express its disapproval of the decision-making process after receiving a complaint from Yeh’s coach, Chuang
A former officer in China’s People’s Liberation Army (PLA) who witnessed the aftermath of the 1989 Tiananmen Square massacre has warned that Taiwan could face a similar fate if China attempts to unify the country by force. Li Xiaoming (李曉明), who was deployed to Beijing as a junior officer during the crackdown, said Taiwanese people should study the massacre carefully, because it offers a glimpse of what Beijing is willing to do to suppress dissent. “What happened in Tiananmen Square could happen in Taiwan too,” Li told CNA in a May 22 interview, ahead of the massacre’s 36th anniversary. “If Taiwanese students or
RSS