Taiwan sees opportunity in US-China trade war but don’t expect a windfall, economists warn
With economic reliance on the mainland for the island for 30 years, any gains amid the trade war are unlikely to bring long-term relief for Taiwan
As the trade war between China and the United States rages on, some in Taiwan see an economic opportunity – a chance for the self-ruled island to make some gains while the mainland takes a battering.
Taipei was upbeat earlier this month, announcing that at least 40 businesses based on the mainland were planning to relocate to the island, and 30 more could be looking to Southeast Asia as they try to avoid getting caught in the crossfire of the escalating trade conflict.
But economists and analysts have questioned how much Taiwan could really gain from any relocations, given the long-term operations of Taiwanese companies on the mainland.
Worse, they said, if US President Donald Trump pushes through yet another round of tariffs on US$267 billion worth of Chinese imports, the island’s economy would suffer as a large proportion of its products manufactured on the mainland are shipped to the US.
Emile Chang, who heads the Taiwan economics ministry’s investment bureau, stopped short of naming the mainland-based Taiwanese firms that have expressed interest in relocating, saying the government needed to keep them from being harassed by Beijing.
But he did say they included textile, rubber, electronic components, and auto parts manufacturers, among others.