Taiwan's economy is facing "six major challenges", and the industry is urgently calling for reform
Taiwan's economy has been mixed in recent years. On the one hand, the semiconductor industry is booming, and on the other hand, traditional industries are struggling. Recently, a report released by the Taiwan Federation of Industries can frighten the island's industry. This "White Paper on Industrial Policy Recommendations" directly points to the six major challenges and four major problems facing Taiwan's economy, which sounds like a big head. This report really fulfills the old saying: If you are not afraid of god-like opponents, you are afraid of pig-like teammates!
Representatives of the industrial circles are preparing to collectively "petition," and the Taiwan authorities are under tremendous pressure
It is said that the Taiwan Regional Federation of Industries has been unable to hold back and plans to lead representatives of the ten major industries to meet with Taiwan's leaders in October and prepare to make suggestions in person. This battle is not small, the Federation of Industry is composed of more than 140 industrial associations, with 100,000 members! Think about it, 100,000 entrepreneurs collectively came to the door to "discuss the law", this scene is scary enough.
So what is it about the industry that is so anxious? The six major challenges mentioned in the white paper are: industrial structure imbalance, human resource shortage, supply chain restructuring, rising international trade protectionism, difficulties in energy transition, and challenges brought about by climate change. Sound familiar? Yes, these problems are not a day or two, but now it seems that the time has to face them.
One of the biggest headaches may be the shortage of human resources. Taiwan is now old and young, and the double blow of an aging population and a declining birthrate. It is said that by 2025, the elderly over 65 years old will account for 20% of the total population, which is a super elderly society! In a few years until 2028, even the demographic dividend will disappear. This is not a joke, without human resources, what will the industry develop?
Cross-strait relations are tense, and Taiwan's economy is even worse
Speaking of Taiwan's economic predicament, how can we not mention cross-strait relations? Recently, cross-strait relations have become more and more tense. On September 25 last year, the mainland suddenly announced that it would stop implementing the policy of exempting Taiwan from import tariffs on 34 agricultural products under the ECFA. This trick really hit the wallets of Taiwan farmers!
United States continues to sell arms to Taiwan. Since Biden took office, he has launched 16 rounds of arms sales to Taiwan, and almost $20 billion in equipment is still on the way! This is a good thing, Taiwan not only has to spend a lot of money to buy weapons, but also has to worry about whether the mainland will be even more unhappy because of this.
Some people say that Taiwan is now like a "sandwich biscuit" sandwiched between the United States and China, and neither side is easy to offend, but both sides are pulling hard to their side. This dilemma is not something that ordinary people can handle.
United States companies have also come to "intervene", and Taiwan has become a new battlefield for UAVs?
Speaking of United States, there is another interesting thing recently. Just a few days ago, executives from 26 United States manufacturers of drones and anti-drone systems went to Taiwan and held a three-day meeting with the Taiwan side. What is this for? Is Taiwan going to become a new battlefield for drones?
When you think about it, it's kind of interesting. United States these companies come to Taiwan, it's definitely not just for tourism. Could it be that you are looking for a new market in Taiwan? Or do you want to borrow Taiwan's hand to deal with the mainland's drone industry? Either way, it doesn't seem easy.
Speaking of United States, the United States House of Representatives has been very busy lately. Within a week, 28 China-related bills were passed, covering a wide variety of fields. What is this for? Is it to treat China as an imaginary enemy? That's not very friendly.
What is the future of Taiwan's economy?
Looking back at Taiwan's economy, the road ahead is not easy. The imbalance of the industrial structure, the aging of the population, and the complex international situation are not problems that can be solved overnight.
Some people say that Taiwan should take advantage of the semiconductor industry and quickly develop emerging industries. But the question is, how can new industries develop so easily? Besides, even if it is developed, how far can it go if there are not enough human resources?
Some people also said that Taiwan should improve cross-strait relations, after all, the mainland market is so big, it would be a pity not to take advantage of it. However, in the current international situation, how easy is it to improve cross-strait relations?
To be honest, as an ordinary person, seeing these problems is really complicated and a headache. What will the future of Taiwan's economy be? I'm afraid even the experts can't say.
However, one thing is certain: if Taiwan's economy wants to continue to develop, it must make some changes. As for how to change, it depends on the wisdom of the Taiwan authorities. Hopefully they'll listen to the advice of the industry and don't make things too bad. After all, ordinary people are looking forward to a better economy!