The Economic Ministry announced today its plans to crack down on Chinese companies trying to re-label themselves as Taiwanese to avoid high tariffs. Economic Minister J.W. Kuo (郭智輝) underscored that the government is taking the issue very seriously.
Following the United States imposing a 145% tariff on China, there were concerns that companies may try to “origin wash” their products. Speaking to the Legislature’s Economic Committee, Minister Kuo said Wednesday the ministry is taking four steps to prevent this kind of illegal transshipment. The current plan includes monitoring import volumes, strengthening anti-dumping investigations, educating businesses, and imposing strict penalties– with violators facing fines of up to NT$3 million (about US$92,000). He also announced the plan’s extension to fastener and machine tool manufacturers, which process some materials from China.
Kuo also spoke on the U.S. plan to launch investigations on semiconductors, saying the ministry will respond through close attention, active consultation, providing sufficient industry information, and an emphasis on “win-win” partnerships. He detailed that negotiations will focus on the close partnership between Taiwanese chip development and manufacturing, and U.S. users and designers.
The economics minister also plans to leverage the power of customer perspectives to help the U.S. fully understand the situation and come to a mutually beneficial decision.
Kuo says the government is aware of the harm caused by the U.S. tariff situation, including order reduction, and is seeking measures to address each issue, and provide Taiwanese companies and individuals with relief.