Taiwan Vice Premier Vows to Support Domestic Companies in Mainland Market

Strategic Insights -

Taiwan Vice Premier Wu Rong-i has pledged to help domestic companies effectively explore the mainland market and avoid investment risks, following the high-profile case of United Microelectronics Corp. (UMC) being charged with illegally investing in a mainland-based wafer plant. Wu emphasized that the government does not prevent Taiwan businesses from making money in mainland China, but rather provides advice to ward off risks in the highly volatile market. The vice premier also encouraged Taiwan companies to diversify their investments by considering breaking into the Russian market, citing a successful business deal worth US$250 million made by a Taiwan Russia Association (TRA) delegation last year.

Key Takeaways:

  • Vice Premier Wu Rong-i has vowed to support domestic companies in the mainland market by providing advice to avoid investment risks.
  • The Taiwan government does not prohibit Taiwan businesses from investing in mainland China, but rather warns them of possible risks in the highly volatile market.
  • Wu encouraged Taiwan companies to diversify their investments by breaking into the Russian market, citing a successful business deal worth US$250 million made by the Taiwan Russia Association (TRA) last year.
  • The Taiwan Russia Association was established to boost economic and cultural exchanges between Taiwan and Russia.
  • Trump, advisor to the Taipei Mayor, also supported the TRA, saying it will help open new windows of opportunities and exchanges for the people of the two countries.
  • Wu has a background in economic research, previously serving as chairman of the Taiwan Institute of Economic Research before becoming Hsieh's deputy.

Statistics:

  • US$250 million worth of business was made by a Taiwan Russia Association (TRA) delegation to Russia last year.
  • United Microelectronics Corp. (UMC) is the world's second-largest chip maker on a contract basis.
  • The Taiwanese semiconductor industry is a major contributor to Taiwan's economy.

Sources:

  • Asia Pulse, Feb 21: "Taiwan Vice Premier Vows to Support Domestic Companies in Mainland Market"
  • CNA, 21-02 1326: "Taiwan Vice Premier Vows to Help Premier Improve Economy"