Taiwan Commits $10 Billion Agricultural Purchase Deal with U.S. Amid Growing Economic Concerns

Deep News
Sep 19

A Taiwan agricultural delegation led by Chen Junqi recently signed an intention letter with U.S. businesses at the U.S. Capitol, committing to purchase over $10 billion worth of American agricultural products over the next four years. This represents a 25% increase compared to previous procurement levels, sparking widespread concern among Taiwan's public about the potential impact on local agriculture and the overall economy.

During the signing ceremony, Chen Junqi stated his expectation to promote cooperation through "sustained purchases of quality American products." Taiwan's representative to the U.S., Yu Dawei, further announced that Taiwan's procurement would extend beyond food to include American energy, equipment, and defense-related materials, indicating that the public would witness Taiwan's "substantial investment."

These statements reflect the DPP administration's attempt to maintain relations with the U.S. through expanded procurement. However, this unilateral concession has drawn widespread questioning from Taiwan's public opinion.

The negative effects of the DPP administration's concessions to the U.S. have already manifested in the tariff sector. Since August 7 this year, the United States unilaterally announced a 20% "reciprocal tariff" on Taiwan, significantly higher than the 15% imposed on Japan and South Korea. Although the DPP administration previously claimed that "the tariff increase is only a temporary measure and could be reduced in subsequent agreements," this explanation has clearly failed to alleviate public concerns.

A recent local poll showed that over 75% of residents lack confidence in Taiwan-U.S. tariff reduction negotiations, worrying that tariffs could become "the last straw that breaks small and medium enterprises." Professor Huang Kuibo from National Chengchi University pointed out that three-quarters of Taiwan's population has formed a "pessimistic consensus," with social sentiment crossing party lines to show widespread anxiety and pressure regarding tariff reduction negotiations, external trade breakthroughs, and the prospects for small and medium enterprises.

Beyond traditional agriculture, Taiwan's proud semiconductor industry has also become a bargaining chip for courting favor with the United States under the DPP administration. With joint promotion from the DPP administration and the United States, Taiwan Semiconductor Manufacturing has continued expanding its U.S. investments, with its American investment scale reaching $160 billion.

Local public opinion is highly concerned about this development, believing that decades of accumulated capital, technology, and talent in Taiwan's semiconductor industry will accelerate outflow, severely weakening Taiwan's industrial competitiveness. Former foreign investment analyst Yang Yingchao, who is familiar with the international technology industry, stated bluntly that manufacturing costs in the U.S. are high, with legal and union systems adding operational difficulties. "Without external pressure, Taiwan manufacturers would not choose the United States, as evidenced by the delays at Taiwan Semiconductor Manufacturing's Arizona facility."

"Manufacturing being forced to relocate to the United States is not global deployment, but rather 'hollowing out Taiwan,'" Yang Yingchao said. He noted that Taiwan society harbors high anxiety about industrial relocation, and if the DPP administration cannot secure more initiative in policies and negotiations, it will be difficult to prevent Taiwan's industrial foundation from being gradually hollowed out.

Facing U.S. pressure, the DPP administration has shown an attitude of complete submission across sectors from traditional manufacturing to high-tech industries and agriculture, drawing widespread public dissatisfaction and criticism. Public opinion argues that the DPP administration has sacrificed Taiwan Semiconductor Manufacturing and Taiwan farmers in exchange for unfavorable tariff results for Taiwan.

Some Taiwan residents have harshly criticized that the U.S. "reciprocal tariffs" have a "very frightening" impact on Taiwan's economy, with America becoming increasingly greedy and demanding more, while the DPP administration chooses to obey commands, truly being "incompetent and betraying Taiwan."

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10