Source: China Times

September 25, 2018

 

The US-China trade war has escalated; Tu Tze-chen, former director of the Knowledge Economy and Competitiveness Studies Center under the Industrial Technology Research Institute (ITRI), points out that if the Mainland continually becomes the butt of the US tariff escalation, Taiwan will inevitably be impacted, especially if the trade war lasts over six months without any easing. It will cause a rather huge impact on Taiwan’s industries; Taiwan not only would fail to enjoy the effects of order transfers, Taiwan businessmen’s export from the Mainland will also be affected by the US’ additional tariffs. Especially, if the RMB was compelled to appreciate greatly, it would compound the injury on the situation of Taiwan businessmen on the Mainland..

 

Sun Ming-teh, director of the Prosperity Forecast Center under the Taiwan Institute of Economic Research, indicates that if the trade war drags on, we are afraid that Taiwan businessmen on the Mainland would become "hostages" of sacrifice in the fight between the two great powers, or we may describe the perilous situation of neighboring countries and Taiwan businessmen on the Mainland with the metaphor that "when two elephants fight, the ants suffer" in ever-escalating trade war. Sun Ming-teh believes that if the ants around the great legs of the elephant could flee for their lives, they might escape a disaster.  What is most dreadful is that Taiwan businessmen on the Mainland react too slow, and eventually they succumb to the fate of being trampled upon.