Shen Rongjin, Minister of Economic Affairs of Taiwan, also said that once the US-China trade war begins, there will be two types of manufacturers that will be affected. One is that Taiwanese manufacturers produce end products on land and sell them to the United States, and the second is to supply semi-finished products to Chinese mainland manufacturers in Taiwan.
The Central Bank of Taiwan held a meeting of supervisors and supervisors yesterday. The media is concerned about the impact of Sino-US trade war on Taiwan. Yang Jinlong stated that Taiwan, Hong Kong, Singapore, Vietnam, and Malaysia will have a greater impact. If the United States and China adopt trade protection measures, Taiwan will participate in The extent of the global supply chain is so deep that it has been hit hardest and cited the example of former Central Bank President Peng Huai Nan: 'When two elephants are fighting, be careful not to be stepped on'.
Yang Jinlong analyzed that the US-China trade war will have three major impacts on the Taiwan region. First, it will impact the iron and steel industry and the aluminum products industry in the Taiwan region. The United States intends to impose tariffs on all imported steel and aluminum products, and the United States is the first in Taiwan. The major steel export destinations and the sixth-largest aluminum products export destination will have a negative impact on the steel industry and aluminum products industry.
Second, it will impact commodity exports and economic growth in Taiwan. Last year, Taiwan’s relative import to export ratio was as high as 145%. Taiwan’s participation in the global value chain was as high as 67.6%. Taiwan’s value added exports to the United States accounted for a larger share of GDP than Korea’s. In the Asian region such as the mainland, if the United States raises barriers to trade protection, the impact of direct exports from Taiwan to the United States and indirect exports to the United States through other countries will be greater.
Thirdly, Taiwan and South Korea participate in a deep global supply chain. They are directly affected by the U.S. trade protection measures against the Chinese mainland. Output reductions will be 0.8% and 0.7% of GDP, respectively, if coupled with retaliatory measures in Mainland China. As a result, output reductions will reach 1.8% of GDP and 1.0% of GDP, respectively.