Taiwan cannot avoid mainland market
To some extent, it is reasonable that Taiwan should adjust its role in regional development and global supply chains, given the industrial transformation of the Chinese mainland and the mainland’s trade war with the United States.
The mainland has played an important role in the island’s industrial layout, particularly for Taiwan processing companies. But the mainland’s economic development has reached a turning point and is undergoing transformation, which requires more investment in environmental protection and higher wages for workers, causing increasing production costs for the mainland’s manufacturers. Therefore, for lower costs, some overseas companies are considering leaving the Chinese mainland for Asian countries with cheaper labor.
Meanwhile, the trade war the US has instigated against the mainland, in which the US has imposed wide-ranging high tariffs on Chinese exports, has harmed those companies on the island with mainland investments.
Taiwan has to prepare for increasing challenges to its economy, it needs to cooperate with advanced entities in high-end innovation and expand cooperation Shen Dingli, professor at the Institute of International Studies, Fudan University