The US and China struck an initial trade deal on Friday. In it, China agreed to buy US$40-50 billion of agricultural products from the US. The US, on the other hand, has agreed to halt plans to raise tariffs from 25% to 30% on US$250 billion worth of Chinese imports.
Taiwan’s economics minister, Shen Jong-chin, told the legislature on Monday that the partial trade deal should not affect the strategy of Taiwanese companies. That’s because, he said, there will still be a 25% tariff on many Chinese goods.
The economics minister said the change in the global landscape and the relocation of Taiwanese companies’ production facilities, are both connected to long-term trends.
Shen said that with the US-China trade war, the industry needs to transform and upgrade itself. This includes using cloud computing, the Internet of Things, big data, and AI to become more competitive.
The economics minister said companies also need to diversify and globalize their markets and production locations. He said the government will continue working to help upgrade local industries and to make Taiwan a better destination for business investment.