Facing the growing pressure of the new US tariffs, more than a quarter of the Taiwanese companies operating in China are considering closing their operations there, while half is packed to change the investments to supply chains outside China, as a basis (general sepeity) of the base by reports of Taipei Times.
Luo explained that uncertainty, after the president of the United States, Donald Trump, on April 2, imposed a 32 percent rate on Taiwan imports. Athegh The implementation of the 32 percent rate was a pause for 90 days a week later, a universal and universal rate immediately was immediately applied to most imports worldwide.
Additional adjustments occurred on April 12, when the Trump administration announced that computers, smartphones and semiconductors would be exempt from new rates. The companies that operate in China that mainly export to the US. And depend on the low gross profit margins are the most affected by the tariff changes, Luo said.
Taiwanese companies that serve directly to China’s domestic market also face greater challenges, Taipei Times reported. As tariffs have restricted the flow of materials and components imported for Chinese national industries, excess altered products have been redirected to the local market, which increases competition and fixing the adjustment margins, Luo added.
Although the impact on sectors such as electronics, information technology (IT) and semiconductors remains relatively limited for now, the Continent Affairs Council has urged business owners to stay cautious and closely monitor the ractions of the Chinese market, Luo.
Before the mood of short -term uncertainties of the new US commercial policies., Taiwanese companies are largely agreed on the need to diversify. “The consensus between Taiwanese companies is to increase investment in non -quineas supply chains and strengthen the resistance of regional supply chains to resist the effects of changes in international economic order and geopolitical changes,” Luo said.
In addition to the economic concerns, the SEF also issued a warning to Taiwanese travelers who plan to visit the duration of China the next summer vacations. Luo warned that the so -called “assistance groups for new youth companies” and “youth culture interaction groups” could be used as covers for scam operations. He cited an incident that involved the Chinese Association of Youth Entrepreneurs, who allegedly used identification documents of Taiwanese Tour Group members to request LAN in Sichuan’s youth starting areas with his knowledge, Taipei Times reported.
The cultural exchange groups, Luo said, could mask the activities in a similar way focused on cheap tours or political propaganda linked to the “United Front” efforts. Although the number of people reported as missing due to such schemes is still clear, even isolated incidents highlight the serious risks of “disappearing” while traveling to China, he warned. The SEF plans to advertise thesis cases anonymously to raise awareness about potential hazards.
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Posted on April 27, 2025