The US might not achieve reindustrialization without tapping into its complementary and cooperative relationship with Taiwan in technological development, Taiwanese academics said yesterday.
Their remarks followed a statement by American Institute in Taiwan Director Raymond Greene, who emphasized that the US and Taiwan would be stronger together.
Dachrahn Wu (吳大任), a professor in the Department of Economics at National Central University, said that Taiwan and the US have maintained a mutually beneficial partnership for decades.
Photo: Bloomberg
For example, Apple Inc manages the brand, while Taiwanese manufacturers supply key components, demonstrating how both sides collaborate rather than compete, he said.
Although US President Donald Trump seeks to boost domestic manufacturing in the US, outsourcing production to Taiwan could achieve greater efficiency and higher product quality at lower costs, Wu said.
Following the principle of comparative advantage, US companies should focus on technological innovation — such as artificial intelligence (AI) and drones — while Taiwanese firms handle production, he added.
Chung-Hua Institution for Economic Research vice president Wang Jiann-chyuan (王健全) said the reindustrialization of the US would require assistance from Taiwan, as the manufacturing sector has been underdeveloped in the past few years and might be short of vendors and distributors.
With its strong machine tool, information technology, electronics and semiconductor industries, Taiwan is one of the most strategic partners for the US in its reindustrialization efforts, Wang said.
Taiwan can help reindustrialize the US, while the US can aid Taiwan by cutting tariffs and simplifying customs and border clearance procedures for specific goods and services, he said.
Since the US excels in software development and Taiwan specializes in hardware manufacturing, bilateral collaborations hold great potential in fields such as AI, robotics, drones and electric vehicles, he added.
Increased US investment in Taiwan would enhance the presence of Taiwanese companies in the US, and they would have more opportunities for acquisitions and mergers, as well as attracting talent, Wang said.
Asked about Greene’s remarks that the US and Taiwan could collaborate in manufacturing dual-use technological products for civilian and military applications in Taiwan, Jong Shyn, Aerospace Industrial Development and the trade union of CSBC Corp Taiwan said they would be “happy to make it happen.”
Additional reporting by Hung Ting-hung
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