More than 25 percent of China-based Taiwanese businesses are considering terminating their operations in China, with 50 percent looking to increase investments into non-Chinese supply chains, given the US’ tariffs, Straits Exchange Foundation (SEF) Secretary-General Luo Wen-jia (羅文嘉) said on Friday.
US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world.
On April 12, the Trump administration exempted computers, smartphones and semiconductors from the new tariffs.
Photo courtesy of the Straits Exchange Foundation
Taiwanese businesses most affected by the situation are those with operations in China that primarily export their products to the US and have low gross profit margins, Luo said.
Companies that cater to China’s domestic market are the second-most affected, Luo added.
US tariffs have significantly affected the imports of materials and components for China’s domestic markets. As a result, products that were previously stored are now being sold domestically, increasing competition, he said.
Although electronics, information technology (IT) products and semiconductors are less affected, the Mainland Affairs Council urged business owners to wait and see how the Chinese market reacts, Luo said.
The consensus among Taiwanese businesses in response to the short-term uncertainty brought about by US tariff policies is to increase investment in non-Chinese supply chains, and bolster the resilience of regional supply chains to weather the effects of the changes in the international economic order and geopolitical shifts, Luo said.
The SEF also reminded Taiwanese businesses to be careful of investment risks, he said.
Meanwhile, in view of the coming summer break for students, Luo said that travelers to China should be wary of youth start-up assistance groups and youth culture interaction groups.
They could be a cover for scam groups, he said, citing as an example an incident in which the Chinese Youth Entrepreneurs Association used identification documents from tour group members to apply for loans for Sichuan’s youth start-up zone, he said.
Culture interactive groups could be a front for cheap tour groups or groups that focus on political propaganda and “united front” rhetoric, Luo said.
The number of people who are missing due to those reasons varies, but even one missing person shows that there is a risk of “disappearing” when traveling to China, he said.
The SEF would publicize those cases while maintaining the anonymity of the people affected to promote greater awareness of the risks associated with traveling to China, he added.
The Taipei Mass Rapid Transit (MRT) Wanda-Zhonghe Line is 81.7 percent complete, with public opening targeted for the end of 2027, New Taipei City Mayor Hou You-yi (侯友宜) said today. Surrounding roads are to be open to the public by the end of next year, Hou said during an inspection of construction progress. The 9.5km line, featuring nine underground stations and one depot, is expected to connect Chiang Kai-shek Memorial Hall Station to Chukuang Station in New Taipei City’s Jhonghe District (中和). All 18 tunnels for the line are complete, while the main structures of the stations and depot are mostly finished, he
The first global hotel Keys Selection by the Michelin Guide includes four hotels in Taiwan, Michelin announced yesterday. All four received the “Michelin One Key,” indicating guests are to experience a “very special stay” at any of the locations as the establishments are “a true gem with personality. Service always goes the extra mile, and the hotel provides much more than others in its price range.” Of the four hotels, three are located in Taipei and one in Taichung. In Taipei, the One Key accolades were awarded to the Capella Taipei, Kimpton Da An Taipei and Mandarin Oriental Taipei. Capella Taipei was described by
Minister of Economic Affairs Kung Ming-hsin (龔明鑫) yesterday said that private-sector refiners are willing to stop buying Russian naphtha should the EU ask them to, after a group of non-governmental organizations, including the Centre for Research on Energy and Clean Air (CREA), criticized the nation’s continued business with the country. While Taiwan joined the US and its Western allies in putting broad sanctions on Russia after it invaded Ukraine in 2022, it did not explicitly ban imports of naphtha, a major hard-currency earner for Russia. While state-owned firms stopped importing Russian oil in 2023, there is no restriction on private companies to
President William Lai (賴清德) is expected to announce a new advanced “all-domain” air defense system to better defend against China when he gives his keynote national day speech today, four sources familiar with the matter said. Taiwan is ramping up defense spending and modernizing its armed forces, but faces a China that has a far larger military and is adding its own advanced new weapons such as stealth fighter jets, aircraft carriers and a huge array of missiles. Lai is expected to announce the air defense system dubbed “Taiwan Dome” in his speech this morning, one of the sources said. The system
RSS