SZAP(SZ:000061) Sou Hu Cai Jing·2025-09-27 11:35Economic Situation in Taiwan - Since August, Taiwan's economic difficulties have intensified due to the U.S. "20%+N" tariff policy, leading many businesses to face rising costs and shrinking orders, resulting in reduced working hours and unpaid leave becoming common [1][5] - The Taiwanese government, instead of seeking diverse international economic cooperation, has opted to sign a four-year agreement to purchase 300 billion New Taiwan Dollars (approximately 10 billion USD) worth of agricultural products from the U.S. [1][2] Agricultural Procurement Agreement - The agreement aims to expand Taiwan's agricultural imports from the U.S., including soybeans, corn, and beef, seemingly a straightforward trade deal to enhance economic benefits and trade relations with the U.S. [2][3] - However, this move is perceived as Taiwan "paying the price" for U.S. pressure, particularly as the region faces significant economic challenges due to high tariffs [5][6] Impact on Traditional Industries - Many traditional industries in Taiwan, such as machinery, hardware, and bicycles, are heavily reliant on the U.S. market and are now under immense pressure due to U.S. trade barriers [6][7] - The rise in unpaid leave numbers reflects the economic impact of U.S. tariffs on Taiwanese businesses, with the labor department reporting significant increases in affected workers [6] Political and Economic Implications - Critics argue that the Taiwanese government is using the agricultural procurement agreement to mask its inability to address economic issues, framing external factors as the primary cause of economic troubles [9] - The long-term economic solution for Taiwan may lie in restoring normal economic cooperation with mainland China, as the region has historically depended on external markets, particularly China [9][10] Semiconductor Industry Concerns - Taiwan's high-tech sector, especially TSMC, faces challenges due to U.S. national security investigations, leading to potential tariffs and the need for significant investments in the U.S. [10] - TSMC's cumulative investment in the U.S. has reached 165 billion USD, highlighting the vulnerability of Taiwan's high-tech industry to external policy changes [10] Public Sentiment and Future Directions - Public sentiment in Taiwan is increasingly critical of the government, with many believing that the administration is compromising Taiwan's economic interests by yielding to U.S. demands [12] - The pressing question for Taiwan is whether it can find a path to economic relief by restoring normal relations with mainland China, moving away from a strategy of relying on the U.S. [12]