The head of Taiwan's central bank, Yang Chin-long, does not think U.S. President-elect Donald Trump would penalize Taiwan for running a trade surplus with the U.S., despite concerns following Trump's critical comments about Taiwan's semiconductor industry.
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00:00Resting confidence in Taiwan's high-tech dominance,
00:03Central Bank head Yang Jinglong said he does not think U.S. President-elect Donald Trump
00:09will penalize Taiwan for running a sizable trade surplus with the U.S.
00:14Concern raised as Trump campaigned on aggressive tariff plans on all U.S. imports
00:20as a way to boost the local economy.
00:23Trump had falsely accused Taiwan of stealing semiconductor business from the U.S.,
00:29casting doubt on the superpower as Taiwan's most important global backer
00:33and source of arms, despite not having formal diplomatic ties.
00:38It's a worry Yang is tempering, stating that the United States needs Taiwan.
01:00Trump's campaign pledge to impose sweeping tariffs on imports
01:06has raised eyebrows around the world, especially in China,
01:10with the president-elect vowing a 60 percent levy on Chinese-made goods.
01:15Taiwan's central bank has warned that such a policy would escalate trade conflicts around
01:20the world and would impact Taiwan's export-dependent economy,
01:25driven by the manufacture of advanced chips.
01:28Last month, leading chipmaker TSMC was caught in the crosshairs of the ongoing U.S.-China trade war
01:35when its tech was found in a China-made Huawei phone by way of a third-party customer
01:41breaching U.S. tech restrictions on Beijing.
01:44Lawmakers are warning such incidents cannot happen with Trump in office.
01:58During Trump's first term, he imposed tariffs on China but spared Taiwan.
02:08Now, as he prepares for a non-consecutive second term,
02:12Trump's pick of China hardliner Marco Rubio for secretary of state
02:17signals that his China policy could be more aggressive, affecting more than bilateral trade.
02:23Over the last four years, Taiwan's shared democratic values with the U.S.
02:28were key in working with outgoing President Joe Biden,
02:31but there will likely need to be some repositioning for its dealings with Trump.
02:36For him and his more transactional leadership style,
02:39Taiwan will have much more of an economic than ideational value.
02:44As to whether the tariffs will bring about more benefits or troubles for Taiwan,
02:49whose economy is still closely tied to that of China,
02:52will depend on what effectively Trump will do once he becomes president
02:57and on whether Taiwan will be able to insulate its economy
03:00and to further diversify its trade away from China.
03:04With two months to go until Trump returns to the White House,
03:07Taiwan has already set up an ad-hoc group led by the Vice Premier Zeng Lijun
03:13to strengthen ties with the new administration,
03:16a commitment to ensuring that U.S.-Taiwan relations
03:19remain strong and mutually beneficial through any transition.
03:24Yixin Chen and Joyce Zeng for Taiwan Plus.