As future US President Donald Trump signals a tough stance on trade with China, Taiwan is stepping in to help its companies move production out of China. Economy Minister Kuo Jyh-huei announced plans to support Taiwanese businesses that could be significantly affected by Trump's proposed tariffs on Chinese imports.
Trump, who is due to take office in January, has threatened to impose a 60% tariff on goods imported from China, a move that could have serious implications for the Chinese economy. Taiwanese companies, which have made significant investments in China over the past four decades, are now being encouraged by their government to consider relocating their investments due to escalating tensions between Beijing and Taipei over sovereignty claims.
Kuo, speaking to parliament, highlighted the significant impact that U.S. tariffs could have on Taiwanese companies operating in China and declared the government's intention to quickly offer assistance to these companies to move their production bases . Details on specific forms of assistance were not provided.
The minister also addressed concerns about the potential cancellation of subsidies for Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading contract chipmaker, which is making a significant $65 billion investment in Arizona for new manufacturing facilities. manufacturing. Kuo mentioned a contingency plan that includes helping more supply chain companies establish operations in the United States.
TSMC, whose shares on the Taipei Stock Exchange rose about 1% Thursday morning, did not comment on subsidy concerns. Meanwhile, Taiwan's GlobalWafers, which is investing $4 billion in the United States, expressed confidence that the Chips and Science Act, aimed at promoting chipmakers' investment in the United States, would continue under the Trump administration.
The company anticipates that the CHIPS program will be maintained and operate smoothly during Trump's presidency, echoing a common practice of maintaining multi-year and 10-year programs across different U.S. administrations.
Reuters contributed to this article.
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