Trade war to force Taiwanese firms to shift production: businessman

2018/07/09 19:30:03 fontsize-small fontsize-default fontsize-big
Image taken from Pixabay

Image taken from Pixabay

Beijing, July 9 (CNA) China-based Taiwanese exporters who ship products to the United States will shift their production to Southeast Asia as Washington and Beijing engage in a trade war, a Taiwanese businessman said Monday.

"No one knows which side will suffer the most until the last minute, but Taiwanese businessmen operating in China will unavoidably be affected by the ongoing trade war," Chang Chi-cheng (章啓正), chairman of the Taiwan Businessmen Association Beijing, told CNA.

"They have no other choice but to face reality by shifting production to their bases in Southeast Asian countries," he said.

According to Chang, many China-based Taiwanese businesspeople have also set up manufacturing facilities in those countries as a hedge and will need to produce U.S.-bound goods there to avoid the higher tariffs imposed on some Chinese exports.

The U.S. government imposed a punitive 25 percent tariff on US$34 billion in Chinese machinery, electronics and high-tech equipment, including autos, computer hard drives and LEDs, on July 6 as it had threatened to do.

China responded simultaneously with a 25 percent tariff on U.S. goods worth the same value, targeting mainly agricultural products and vehicles.

(By Miao Zong-han and Flor Wang)

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