Premier Lai OKs Taiwan response to US trade sanctions on mainland China
2018/03/31
A raft of economic measures preparing Taiwan for fallout from a potential trade war between the U.S. and mainland China was greenlighted by Premier Lai Ching-te during a Cabinet meeting March 29 in Taipei City.
The four-pronged approach comprises accelerating investment to boost domestic demand; enhancing innovation capacity; stimulating economic diversification; and strengthening the production, R&D and trade base, Lai said. Greater efforts will be made in fast-tracking the development and transformation of Taiwan’s economy, he added.
According to Lai, the National Development Council-drafted measures will ensure Taiwan is ready for global market volatility stemming from recently announced U.S. government trade sanctions targeting mainland China. They are also in line with President Tsai Ing-wen’s directive on the matter, he said.
Measures include assisting local firms as required, helping shift supply chains and persuading Taiwan companies to redirect overseas investment home. They also encompass strategies like aiding domestic enterprises with technology upgrades, further implementing the five-plus-two innovative industries initiative, promoting production of critical components and strengthening the intellectual property rights regime.
The initiative covers the biotech and pharmaceuticals, green energy, national defense, smart machinery and Internet of Things sectors, as well as the circular economy and a new paradigm for agricultural development.
At the same time, Lai said, key policy undertakings like the Forward-looking Infrastructure Development Program and New Southbound Policy are central to the approach.
Running from September 2017 to August 2021, the NT$420 billion (US$14.4 billion) FIDP aims to meet Taiwan’s development needs for the next 30 years. It comprises eight categories: aquatic environments to build resilience against climate change, child care facilities to address declining birthrates, digitalization to create a connected nation, food safety to protect consumers’ health, green energy to ensure environmental sustainability, human resources to boost employment, railway development to provide convenient and safe transportation and urban-rural projects to balance regional development.
The New Southbound Policy seeks to deepen Taiwan’s agricultural, business, cultural, education, tourism and trade ties with the 10 Association of Southeast Asian Nations member states, six South Asian countries, Australia and New Zealand.
Other undertakings set to play a key role while driving domestic demand involve energy transformation, social housing construction and urban renewal, as well as the Long-term Care Plan 2.0, Lai added.
First approved in 2007, the plan was revised and OK’d by the Cabinet in September 2016. It is designed to have a community-level focus and will help achieve the goal of establishing a complete chain ranging from preventative health treatment to community-based support services and late-life hospice care.
Source: Taiwan Today (https://taiwantoday.tw/news.php?unit=6&post=131907)
