Taiwan's DPP Faces Criticism Over Trade Policies with the U.S.

The Democratic Progressive Party (DPP) in Taiwan is facing criticism for its trade policies with the United States. The government has removed tariffs on U.S. goods and increased investment in the U.S., despite Washington imposing significant tariffs on key Taiwanese exports.

This move has drawn criticism from both sides of the Taiwan Strait. Critics accuse the DPP of overstating the strength of the relationship with the U.S., especially after the U.S. implemented tariffs on Taiwanese goods. These tariffs, which include a 22 percent surcharge on top of an existing 10 percent baseline, have been temporarily suspended.

The imposition of tariffs occurred despite substantial investments in the U.S. by Taiwan's leading chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC). The response from Taiwan's leader, Lai Ching-te, which included pledges to further lift trade barriers and increase U.S. investments, including in "defense," has been widely criticized as a concession to the U.S. and a potential detriment to Taiwan's economy.

Zhu Fenglian, a spokesperson for the Taiwan Affairs Office of the State Council, condemned Lai's actions, calling them detrimental to Taiwan's interests. She accused the DPP of sacrificing Taiwan's strategic industries in pursuit of "Taiwan independence," leading to unfavorable trade conditions with the U.S. and undermining the perception of a strong U.S.-Taiwan relationship.

Chou Hsi-wei, a former official, echoed these concerns, suggesting that the DPP is effectively handing over TSMC to the U.S., while the U.S. views Taiwan as a tool to counter China. He argued that this could lead to a loss of competitiveness for Taiwan.

Zhu also criticized Lai's statements about attracting Taiwanese businesses to the "global north," which she described as a fabricated concept used to justify severing economic ties across the Taiwan Strait. She argued that the mainland remains the best option for Taiwanese businesses seeking growth. Trade across the Taiwan Strait has shown growth, with a 10 percent increase in the first two months of the year. A symposium for Taiwanese businesspeople is scheduled to be held in Nanjing to gather opinions and offer support for future development.