Momentum Slows Two key institutions in April trimmed their forecasts for Taiwan’s GDP growth in 2019, citing falling exports as global demand for consumer electronics slumped amid a prolonged U.S.-China trade war. Standard Chartered Bank cut an earlier GDP forecast of 2.5% to 2.1%, with its chief Taiwan-based economist saying that the first quarter’s 4.2%…
The absence of diplomatic ties hasn’t deterred the establishment of collaboration in a host of different fields. During this commemoration year for the Taiwan Relations Act, Taiwan and the U.S. can take satisfaction from knowing that 40 years and the loss of formal diplomatic relations haven’t dimmed the deep-seated friendship and widespread cooperation between them….
The biggest concern for Taiwan is that the body’s dispute-resolution mechanism may be weakened or unable to function. U.S. President Donald Trump has made no secret of his disdain for the World Trade Organization (WTO) and the way it regulates trade among its 164 members. Trump has even threatened to withdraw the United States from…
In September 2018, Taiwan went through its quadrennial WTO Trade Policy Review (TPR). In this round, Taiwan not only received positive comments from the TPR members but voluntarily committed to becoming a “developed member” of the WTO, indicating that Taiwan is ready to better connect with the global market and improve the ease of doing…
2019 Off to Slow Start Central banks throughout the world have been in a holding pattern amid a global economic slowdown and a protracted, bitter trade war between the U.S. and China. The U.S. Federal Reserve in late March announced that it will not increase rates during 2019. The Bank of England is unlikely to…
Growth Forecasts Cut “The economy is losing steam, but is not in a recessionary state,” Minister Chu Tzer-ming of the Directorate General of Budget, Accounting and Statistics told a mid-February news conference. He reported that DGBAS is now forecasting GDP growth for Taiwan of 2.27% this year, down from the 2.41% it was predicting last…
With their heavy exposure to China, Taiwanese tech firms are feeling the bite of the U.S. tariffs on Chinese goods. For years, China bears warned Taiwanese tech firms about their dependence on the Chinese market. A deep recession in China or a cross-Strait relations crisis could spell trouble for companies overly reliant on Chinese manufacturing…
Tariff Rate Set for Offshore Wind Energy The Ministry of Economic Affairs in late January announced a new feed-in tariff for offshore wind power – a 5.71% reduction from the previous level but a smaller cut than the 12.71% previously proposed. The Ministry had been feeling pressure from two sides. Critics argued that the government…
The New Southbound Policy, launched in 2016 to enhance Taiwan’s contacts with countries in the surrounding region, has recently taken on added significance. The deterioration in U.S.-China economic relations has placed the spotlight on Southeast Asia and India as prime areas for future growth in trade and investment. Taiwan’s efforts to enhance relations with those…
Feeling the Pinch With the global trade environment growing increasingly uncertain, Taiwan recorded exports worth US$28.6 billion in December, 3% less than in the same month a year earlier. The Ministry of Finance attributed the dip largely to sluggish demand for semiconductors used in manufacturing smartphones. New export orders received in December told a similar…
