Taiwan accelerates AI adoption, adjusts tariffs, and reshapes supply chains.

Deputy Secretary-General to the President Ho Chih-wei pointed out at a press conference today that Taiwan is currently in a "critical era," facing not only the challenges of rapid technological evolution but also changes in the international trade environment. Deputy Secretary-General Ho emphasized that the government will join hands with industry and academia to formulate concrete countermeasures regarding issues such as artificial intelligence (AI) development, tariff policy adjustments, and supply chain restructuring, ensuring that Taiwan's competitiveness in the global value chain remains unaffected. This statement is particularly significant given the backdrop of continuously escalating cross-strait tensions and frequent adjustments to global supply chains driven by geopolitics.

In the field of artificial intelligence, Taiwan has in recent years formed an industrial cluster centered on semiconductors, information and communications technology, and smart manufacturing. Since 2022, the government has promoted the "AI Taiwan" initiative, investing over NT$10 billion in R&D subsidies, talent cultivation, and the establishment of international cooperation platforms. Ho Chih-wei stated that the government will accelerate the implementation of AI technology in manufacturing, healthcare, and service industries in the future, enabling local enterprises to go beyond being mere hardware suppliers and provide comprehensive smart solutions. This move will not only help enhance industrial added value but also secure more high-end orders in markets such as the United States and Europe, reducing dependence on a single market.

Tariff issues represent another major variable in Taiwan's foreign trade environment. Since the escalation of US-China trade frictions, Taiwan's export structure has undergone adjustments, with certain products facing tariff barriers—particularly electronic components, which have been listed under defensive tariff lists in some countries. The Deputy Secretary-General noted that the government is striving for more favorable tariff conditions through bilateral and multilateral trade negotiations, while simultaneously assisting businesses in diversifying their markets to lower single-market risks. Relevant ministries and agencies have launched a "tariff risk assessment" mechanism to provide operators with real-time information and response recommendations, hoping that Taiwanese enterprises can maintain stable export performance amidst shifting global trade patterns.

Supply chain restructuring has been the focus of international industrial deployment in recent years. Influenced by the "China plus One" strategy, many multinational corporations are seeking to establish or expand production capacities in Taiwan to diversify their reliance on a single country. Ho Chih-wei mentioned that the government will continue to optimize the investment environment, including accelerating review procedures, providing tax incentives, and offering technical support to attract more high-tech manufacturing industries to settle in Taiwan. Successfully introducing more advanced processes and automated equipment will further enhance the resilience and flexibility of the local supply chain, allowing Taiwan to play an even more critical role in the global deployment of the semiconductor and electronics industries.

Most remarkably, the Deputy Secretary-General projected that Taiwan's economic growth rate this year "could reach up to 12%," far exceeding the 3% to 4% range commonly forecast by international institutions. This figure reflects the government's high expectations for the AI industry, supply chain upgrading, and brand internationalization. Ho Chih-wei emphasized that beyond pursuing quantitative growth, the goal is to forge Taiwanese enterprises into "world-trusted brands," making quality and innovation Taiwan's calling card. Establishing a highly trusted brand image in the global market will lay a more solid foundation for Taiwan's long-term economic development and help elevate its voice in international politics and economics.

In summary, Ho Chih-wei's remarks are not only an optimistic forecast of current economic indicators but also a comprehensive strategic blueprint encompassing technological innovation, trade policy, and industrial upgrading. Facing external environmental changes and internal industrial structural adjustments, if Taiwan can, as he said, "face challenges together with everyone," it will have the opportunity to stand firm amidst the waves of global supply chains and the smart economy, paving a solid foundation for future sustainable development. (Source of facts: Central News Agency)