Reported 8 months ago
The Taiwan Machinery Association estimates that the annual export value of Taiwan's machinery equipment will decrease by 110-140 million US dollars due to China's suspension of 134 items from the ECFA early harvest list starting from June 15, 2024. This will result in a 4%-5% decline in market share in China. The industry suggests that the government should offer individual guidance or subsidy resources to companies affected by the change, especially those in power transmission and hydraulic components manufacturing sectors facing increased export competition pressure. The industry is also impacted by significant currency devaluation compared to neighboring countries like Japan and South Korea, urging the government to align the depreciation of the New Taiwan Dollar with competing currencies and expedite Taiwan's participation in regional economic organizations like RCEP and CPTPP to mitigate the challenges. Additionally, they recommend expanding both overseas exports and domestic market demand, offering incentives to upgrade manufacturing equipment for energy efficiency. However, some manufacturers lacking government support may face closures and layoffs, creating a potential exodus from the industry.
Source: YAHOO