TAIPEI (TVBS News) — Eric Chu (朱立倫), chairman of the Kuomintang (KMT, 國民黨), Taiwan's main opposition party, sounded the alarm Tuesday (May 6) about looming economic perils caused by the strengthening New Taiwan dollar (新台幣). Chu claimed a mere 3-unit appreciation in the currency's value could trigger losses of NT$1 trillion (US$33.4 billion), with Taiwan bearing a disproportionate economic burden. The recent currency fluctuations have already prompted many Taiwanese citizens to convert their savings into Japanese yen and U.S. dollars.
The opposition leader forecasted an imminent U.S. debt crisis arriving in June, pointing out that American global debt approaches US$500 billion. Chu highlighted that while major economies like Japan, China, and India have strategically reduced their U.S. debt holdings, Taiwan has maintained its position to avoid diplomatic friction with Washington. He lambasted the ruling Democratic Progressive Party (DPP, 民進黨) for its inaction on three critical economic challenges: securing tariff reductions, addressing factory relocations to American soil, and managing currency appreciation that has made Taiwanese exports increasingly expensive in global markets.
Chu directed sharp criticism at Taiwan Semiconductor Manufacturing Company (TSMC, 台積電), the world's leading chipmaker, for establishing U.S. operations without negotiating advantageous terms, resulting in a substantial 32% tariff—a move he characterized as "surrendering before the battle." The KMT chairman identified the strengthening New Taiwan dollar as the central factor in what he termed a "currency war" that further intensifies Taiwan's export difficulties. He accused President Lai Ching-te (賴清德) of merely parroting statements from Taiwan's Central Bank (中央銀行) while deflecting responsibility onto opposition parties.
The opposition leader directly challenged President Lai's economic forecast regarding U.S. dollar appreciation, doubling down on his warning that even a modest 3-unit strengthening of the New Taiwan dollar could inflict catastrophic damage to Taiwan's economy—potentially resulting in losses approaching NT$1 trillion (US$33.4 billion). This currency movement, Chu suggested, represents an existential threat to Taiwan's export-driven economic model. ★
