US Presidential Election: Trump vs Guo Zhihui – What’s at Stake for Taiwan’s Economy

Economy Minister Kuo Chi-hui said in a joint interview with the media that no matter which candidate wins the US election, little will change in Taiwan’s current economy. (Photography/Li Haiqi)

The most hotly contested presidential election in US history is over, and polls are opening and counting across the US. According to the latest figures, Trump temporarily leads Harris by 230 to 187 electoral votes, winning many traditionally Republican states such as Utah, Montana and Florida, while Harris wins in California, Illinois and elsewhere. The two parties are hotly contested in seven key swing states and the situation is tense.

Trump is certain to win North Carolina, temporarily leading

The Associated Press predicts that Trump is expected to win Texas, Ohio and other states with New York, Massachusetts and other places. In terms of the seven key swing states, Trump currently leads in Georgia, North Carolina, Pennsylvania and Wisconsin, while Harris has advantages in Michigan and Arizona. According to the latest figures, Trump is determined to win North Carolina, a key swing state.

Trump currently leads the popular vote, with 41.56 million votes, surpassing Harris’ 36.64 million, according to the latest data from FOX NEWS. Trump has won the popular vote in the previous two elections, but this time he is leading.

The US presidential election uses the “electoral college system” where a candidate must receive more than 270 votes to be elected.

The world is paying attention to the results of the US presidential election, and Taiwan’s Economy Minister Kuo Chi-hui went to the legislature today for a joint interview with the media. Relationships are deep and don’t change easily.

The Legislative Yuan’s Economic Committee today (6th) invited Economic Minister Guo Zhihui, National Development Council Chairman Liu Jingqing and other ministries to “review and remedy the causes of low wages for young people in China, and discuss how to do so. Improve the salary level of young and grassroots employees.” Promoting enterprises to do, “China’s traditional industries “Discussion on the development difficulties, prevention and related revitalization plans of small and medium-sized enterprises“.

Collecting protection fees is just electoral parlance: whoever is elected will have no impact on Taiwan’s economy.

Although the project report highlights the low wages of the youth and the plight of small and medium-sized enterprises and traditional industries, legislators from both the ruling and opposition parties are also very concerned about the impact of the election of the two presidential candidates. Taiwan’s economy has been criticized by the United States, particularly Republican candidate Trump’s policy of increasing tariffs, and various unsavory comments against Taiwan’s semiconductor industry. Chen Tingfei, a lawmaker from the Democratic Progressive Party, asked if Trump’s claim that Taiwan had taken over the US chip industry and threatened to levy protectionist fees was a real issue or political language.

Guo Zhihui believes that no matter who the new US president is, it will have little impact on Taiwan. He also explained that Taiwan’s economy and the US economy complement each other in the chip supply chain, but the US collects 70 to 80% of protection fees for chip designs, which may not necessarily be a good thing for American businesses.

Liu Jingqing also believes that protection fees are electoral language, and if protection fees are collected, it will affect large American manufacturers such as Apple and Intel, which will increase product prices and costs, and influence public opinion. .

In addition, Guo Zhihui has a great influence on the United States, the influence TSMC’s advanced process is still in the traditional process above 20 nanometers, if Taiwan has such manufacturing technology, they must come.

Will both parties stop paying subsidies under the US “CHIP Act”? Liu Jingqing hurriedly explained

The “CHIP Act” allocates $39 billion in subsidies, including a 25% federal tax credit to the world’s largest state-of-the-art semiconductor manufacturers, including Intel and TSMC; Trump criticized the Biden administration’s “CHIP Act” on October 25, believing the federal government should increase tariffs to allow chipmakers to invest more of their own funds in building factories in the United States.

Kuomintang legislator Ji Yifeng asked about the US chip bill subsidies if Trump is elected, will the funds be allocated? Guo Zhihui responded that Intel (Intel) CEO Pat Kissinger recently said that he has invested 30 billion US dollars in investment, but he has not yet received the subsidy, so “both parties (Republicans and Democrats) have not received it, and it is a subsidy for TSMC. Very small…” Guo Zhihui wanted to continue, but Liu Jingqing next to him saw a serious face and wanted to speak. Xie Yifeng noted that “his face had changed”, so he changed his explanation

Liu Jingqing said that the subsidy provided by the US “Chip Act” has established milestones and that TSMC is going to meet the standards and will apply for funds after it starts mass production. He stressed that the “Chip Act” is a set of laws, unless it is passed in the House of Representatives in the future. is revised, otherwise it will be enforced according to law.

Trump raised taxes by 10%Tariffs, Liu Jingqing: US pressure on China will help Taiwanese companies

As Liu Jingqing once pointed out, Trump’s main policy is to impose a 60% tariff on China, and Taiwan is gradually increasing the tariff to 10%, and Taiwan mainly provides OEM services under this tariff policy, the negative impact on Taiwan “has more advantages than disadvantages”.

Xie Yifeng pointed out that although the proportion of Taiwan’s exports to China and Hong Kong has been decreasing year on year, it is still 35%, while the proportion of Taiwan’s exports to the United States has been 20% year on year. Side growth, what is the impact on Taiwan? Also, the General Accounting Office noted that a 1 percentage point decline in China’s economy would affect Taiwan’s economy by 0.2 percent.

Guo Zhihui said that there would be no effect; While Liu Jingqing said that Taiwan’s exports to China and Hong Kong accounted for 48%, although Taiwan has reduced its dependence on China and Hong Kong in recent years, the dominance of Chinese companies has suffered severely. Taiwanese businessmen believe that with US exports to China and Hong Kong, increased pressure from China will instead help create “two different worlds” and prevent Chinese interference from harming our companies.

Liu Jingqing also said Trump had previously said he would impose a 60% tax on mainland companies, reduce imports of mainland goods year after year and extend sanctions on mainland manufacturer Huawei as good opportunities for Taiwanese businesses.

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