Taiwan to enforce financial measures in response to US-China trade war

05-Oct-2018 Intellasia | Digi Times | 6:00 AM Print This Post

The government in Taiwan will take financial stabilisation measures to help industries cushion the impact of the escalating US-China trade disputes, according to premier William Lai.

When delivering his latest policy address in parliament, Lai said that as a small and open economy, Taiwan relies heavily on foreign trade, particularly maintaining extremely close trade exchanges with the US and China. Accordingly, he continued, the government will come up with different countermeasures for different stages of US-China trade spats.

In order to sustain macroeconomic stability, the government will kick off financial stabilisation measures and will not rule out expanding spending to ease the impact on Taiwan industries and economic development, according to Lai.

The premier stressed that the government welcomes Taiwanese investors to move their production lines from China back to the country, and will provide all the assistances needed to help enterprises with the relocation and supply chain transformation.

In addition, the government is formulating incentives to attract the return of investment in strategic industries, and it will also step up promoting the New Southbound Policy to build closer trade and investment ties with countries in Southeast Asia and South Asia.

On September 24, the US kicked off imposing an extra 10 percent tariff on $200 billion worth of imports from China, with the tariff to be hiked to 25 percent starting January 1, 2019.



Category: Taiwan

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