Taiwan-based companies is likely to face increased competition next year as a result of of the Closer Economic Partnership Arrangement (CEPA) signed between (mainland) China, Hong Kong and Macau, an analyst said yesterday.
According to Wu Fu-cheng (
Beijing and Hong Kong are scheduled to complete negotiations on the CEPA by the end of next month. The deal will allow the entry of an additional 710 Hong Kong products to the mainland market without tariff duties, Wu said.
Some 1,087 items will then enjoy preferential treatment in China, Wu said.
CEPA talks are focusing on a further market opening for Hong Kong-based shipping and surface transportation services, as well as liberalization in the financial and insurance sectors, allowing Hong Kong companies to do business in the vast mainland market, Wu said.
The CEPA will help push Hong Kong's gross domestic product (GDP) up by 2.64 percent, he said.
The CEPA may lower Taiwan's GDP by 0.07 percent, with the textile industry suffering a 1.24 percent drop in its production value, Wu said.
Under the CEPA framework, Hong Kong and Macau may join forces with the mainland in pressing ahead on free trade agreements (FTAs), Wu said.
China is planning to establish an FTA zone composed of Russia, Japan, South Korea and countries in Southeast Asia by 2010, while at the same time keeping Taiwan on the sidelines of such agreements, Wu said.
As a result, Taiwanese business groups will need to formulate strategies to remain competitive in the region, he said.
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
RSS