Source: Republic Of China Taiwan
Following a briefing Thursday by the Ministry of Economic Affairs (MOEA) on the Taiwan-U.S. partnership amid global supply chain realignment, Premier Su Tseng-chang said that Taiwan as a manufacturer of high-end hardware has an irreplaceable advantage in global supply chains, while the U.S. is the prime source of global high-technology development. Strengthening economic cooperation between Taiwan and the U.S. and working jointly to advance supply chain realignment is one of the government’s most important administrative goals at present. It is also a top priority to which the entire Cabinet team must devote its full efforts.
The strengthening economic cooperation between Taiwan and the U.S. in recent times has become a hot topic of conversation on both sides, said the premier. Not only has Taiwan proactively campaigned for the negotiation of a bilateral trade agreement with the U.S., but many sectors in the U.S.—including government departments, Congress and private-sector industry associations—have also called for developing broader economic ties with Taiwan and initiating the negotiation of a bilateral trade agreement. This reflects both widespread, bipartisan U.S. support for Taiwan as well as highlights the mutually beneficial nature of Taiwan-U.S. economic cooperation.
Global economic conditions are now changing rapidly, and the reorganization of supply chains is a trend impossible to reverse. Taiwan holds an irreplaceable advantage in global supply chains as a manufacturer of high-end hardware, and is a reliable, safe partner to the U.S. The U.S., meanwhile, is the prime source of global high-technology development. Even more, the U.S. is actively working to “bring manufacturing home.” Premier Su expressed confidence that if the two sides are able to couple their advantages and enhance cooperation during supply chain realignment, then they will certainly be able to create a huge economic boost that will once again raise up Taiwan and supercharge the U.S. economy.
Priority in advancing the Taiwan-U.S. supply chain partnership can be placed on those advantages that best reinforce each other and confer the greatest benefits, the premier said. The MOEA’s briefing identified four such areas: semiconductors, communications, artificial intelligence and other cutting-edge technologies; innovative green energy enterprises; strategic medical stockpile industries; and opening global markets. At the current stage these strategic areas of cooperation offer the most potential and promise outsized positive effects together with long-term prospects. Through trade and investments in each other’s markets, Taiwan and the U.S. can build a strategic partnership and pursue goals that each side hopes to achieve.
Within the areas of strategic collaboration mentioned by the MOEA, there are many important and practical such examples, noted Premier Su. For instance, supporting electric car leader Tesla’s supply chain will bring manufacturers back to the U.S., while investments in Taiwan can upgrade and transform Taiwan’s industries. The two pursuits are entirely mutually beneficial without posing any conflicts of interest.
In the area of cutting-edge technology, Taiwan’s semiconductor manufacturing strengths and American technological and R&D advantages can all be grown and expanded through bilateral trade and investment. Taiwan Semiconductor Manufacturing Co.’s plans to set up factories in the U.S. is another key example of strategic cooperation, the premier said.
In the area of global market development, the Made-in-Taiwan brand can be combined with American technology and branding to create a worldwide marketing network, Premier Su pointed out. The two sides can join forces to enter markets in the Indo-Pacific region and together create a whole new supply chain along with significant business opportunities.
If Taiwan and the U.S. can cooperate in the four strategic areas in the coming years, industry experts estimate the projects could generate at least US$100 billion worth of added value in the U.S. and create hundreds of thousands or even millions of work opportunities, marking another major step forward in the repatriation of manufacturing jobs to American shores. Bilateral cooperation can also help Taiwan consolidate its key position in global supply chains, Premier Su added.