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Taiwan machinery industry benefits from US-China trade war
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A exhibit at the 16th Taipei International Plastics and Rubber Industry show (Taipei Plas) in Nangang Exhibition Center in Taipei, on Wednesday. (JP/Dewanti A. Wardhani)
W
hile the United States and China have got embroiled in a trade war, Taiwan has risen to become a beneficiary of the tit-for-tat tariffs between the world's two biggest economies.
Taiwan Association of Machinery Industry (TAMI) chairman of plastics and rubber machinery committee Alan Wang said that Taiwan's machinery industry had seen an increase in sales since the trade tension began earlier this year.
"In the short term, the trade war will benefit Taiwan. Because of the trend in 'Made in the USA', there has been higher demand for production and facility equipment. Our machinery sales to the US have increased,” Wang told a press conference during the Taipei Plastic and Rubber Machinery Show (Taipei Plas) in Nangang Exhibition Center in Taipei on Wednesday.
Wang said that in the long term, however, the trade war might spook investors.
TAMI board of supervisors convener Larry Wei concurred, saying that Chinese machinery had become more expensive for US companies due to the tariffs, thus making room for Taiwanese machinery.
"Since last year, Taiwanese machinery has seen more and more demand from US companies with a growth rate of 20 to 30 percent," Wei said during the same occasion.
The US imposed 25 percent duties in July on about US$34 billion of Chinese machinery, electronics and high-tech equipment, to which China retaliated. The US plan to further collect 25 percent extra in tariffs on $16 billion worth of Chinese goods this month, and in return China is slapping additional tariffs of 25 percent on $16 billion worth of US fuel and steel products, as well as autos and medical equipment. (dwa)
