Red Brick Daily
Much of the world was shocked by the election of Donald Trump as U.S. president on Tuesday (U.S. time) … but elected he was … and leading local economists are predicting a big hit to our island’s economy.
President Jeff Lin (林建甫) of the Taiwan Institute of Economic Research, told the press that Trump’s protectionism means Taiwan may want to rethink its general trade policy.
Lin even imagines a scenario in which Hon Hai Precision Industry (鴻海) — the main producer of many Apple electronics products — could be forced to relocate their production lines to the U.S.
In short, the economists are predicting a dimished, inward-looking U.S., which will give China a freer hand to expand its influence.
With China on the ascent, it might be better for Taiwan to consider leaning more toward the China-led Regional Comprehensive Economic Partnership (RCEP), Lin suggested.
Taiwan’s former Finance Minister Chang Sheng-ford (張盛和) said Trump’s victory will be bad for our export-reliant economy — and he also thinks Apple could be forced to relocate.
Chinese National Federation of Industries Chairman Rock Hsu (許勝雄) is another predicting stormy seas ahead … saying Taiwan’s exports will almost certainly be impacted by U.S. trade protectionism as Trump has promised to raise trade tariffs on imports, especially those from China.
Do you agree with these assessments? Is there any way you see Trump’s victory as a plus for Taiwan’s economy?
(Photo via Wikimedia Commons)