The U.S.-China Trade War and Its Implications for Taiwan's Economic Structure

Chien-yi Chang

《Taiwan Strategists》 4期 (2019/12) Pp. 21-37

摘要

In response to the potential uncertainties caused by the U.S.-China trade war, China-based Taiwanese businesses returning to Taiwan have surged. It is unlikely that this returning investment trend be a short-lived one, but rather this trend will bring about concrete investments and become a main source of funding for innovative industries. Additionally, a new value chain structure, a non-Chinese based structure, has gradually formed, and in the future Taiwan will play a very important role in this new value chain structure. Taiwan needs a new growth engine to boost industrial development and economic dynamism. This paper seeks to analyze and suggest macroeconomic strategies for Taiwan in the face of the ongoing U.S.-China trade war and, in particular, formulate strategies for Taiwan's economic and industrial development. Taiwan should accelerate the pace of industrial upgrading and try to construct a new, more flexible production structure, more professional and advanced, than the Chinese supply chain. At the same time, challenges and opportunities for returning China-based Taiwanese businesses should be analyzed. It is also important to strengthen the capability of technology protection for Taiwanese businesses in the future to prevent the outflow of Taiwanese technologies to China.

關鍵字

U.S.-China Trade War ； Global Supply Chain ； Economic and Industrial Development ； Taiwan's Economic Structure ； Technology and Innovation