Taichung mayor urges economic diversification

TAICHUNG (TVBS News) — Taichung Mayor Lu Shiow-yen commented on China's suspension of tariff concessions on certain products under the Cross-Strait Economic Cooperation Framework Agreement (ECFA) on Monday (June 3), noting that deteriorating relations between the two sides often lead to retaliatory measures in business and other areas.

China has announced that starting June 15, it will suspend tariff concessions on certain products under ECFA.

The mayor emphasized the need for the central government to review and support industries affected by this suspension, suggesting a strategic diversification of markets to mitigate the impact.

Lu also addressed the immediate concerns of businesses hit by the suspension. She urged financial institutions not to recall loans from these enterprises during these challenging times, highlighting the importance of stability and support for the affected sectors. "The central government needs to inventory the damaged industries and assist in diversifying markets," Lu stated, underlining the urgency of government intervention to cushion the blow.

Despite China's economic and political implications, Lu refrained from discussing her political future, specifically her potential candidacy for the Kuomintang (KMT) chairmanship. "I do not discuss politics during work hours," she remarked, focusing on the immediate economic concerns.

This development calls for strategically reassessing Taiwan's economic policies and relations with China. As businesses and the government navigate these turbulent waters, the broader implications of cross-strait ties and regional stability remain to be seen.