Taiwan's authorities have hailed a US tariff cut to 15% as a 'home run', but opposition parties warn it risks gutting the island's semiconductor sector, while Beijing labels it an exploitative plot. The deal involves Taiwan committing up to US$500 billion in investments in the United States in exchange for the tariff reduction. Observers express concerns over the potential hollowing out of Taiwan's industrial base.
Taiwan's authorities have praised a deal with the United States to reduce tariffs on Taiwanese products to 15% as a 'home run', despite the island's commitment to invest up to US$500 billion in the US, according to the South China Morning Post.
Opposition parties and observers have voiced sharp concerns, warning that the arrangement could hollow out Taiwan's industrial base—particularly its prized semiconductor sector—while delivering disproportionate gains for Washington. Key firms like Taiwan Semiconductor Manufacturing Co (TSMC) may face pressures to relocate production.
Beijing has vehemently objected to the deal. 'The Chinese side has consistently and firmly opposed countries that have established diplomatic relations with China entering into any agreements with the Taiwan region,' said Guo Jiakun, a spokesman for the mainland foreign ministry, on Friday.
On Wednesday, Zhu Fenglian, spokeswoman for Beijing’s Taiwan Affairs Office, described the expected deal as 'economic exploitation' of the island and a plot to drain the lifeblood of its industry. She also condemned Taiwan’s ruling Democratic Progressive Party (DPP) for bowing to US pressure: '[This] will only destroy the development prospects of Taiwan and harm the long-term interests of the Taiwanese people,' she cautioned.
Beijing regards Taiwan as an inalienable part of China, to be reunified by force if necessary. Most countries, including the US, do not recognise Taiwan as an independent state, but Washington opposes any forcible takeover of the self-governed island and is committed to supplying it with weapons.
The agreement underscores Taiwan's precarious position amid US-China tensions, potentially impacting its economic security and geopolitical standing.
