Today’s focus is on the New Taiwan Dollar’s “panic-driven appreciation” and the potential turning point. The United States’ series of heavy blows that are restricting China’s economy. Will Xi Jinping’s credit bankruptcy become a critical factor? Leading Taiwan’s economy in a new direction: aligning with the US to counter China and seize the initiative!
Warren Buffett is set to retire by the end of the year – how does he view the US economy? In the US-China trade war, the Chinese Communist Party unilaterally lifted tariffs on a quarter of goods, sending its Minister of Public Security to negotiate with the US on fentanyl. Is this a gesture of sincerity or a threat?
Taiwan has been included in the first group of countries prioritized by the US for trade negotiations and has completed the first round of discussions. Reports indicate that China is planning a new wave of economic campaigns to clamp down on Taiwanese capital and prevent Taiwanese businesses from leaving.
The New Taiwan Dollar has seen significant appreciation for two consecutive trading days, potentially linked to the Taiwan-US tariff negotiations. From last Friday (May 2), the exchange rate has gone from 32 to under 29 to the US dollar. This uptrend coincides with the completion of the first round of tariff trade negotiations between Taiwan and the US. Speculation arises regarding the factors behind the New Taiwan Dollar’s appreciation and its connection to the tariff negotiations.
On Monday (May 5), Taiwan’s Executive Yuan confirmed that negotiations with the US did not touch on exchange rate issues and excluded the central bank representatives from the discussion group.
Warren Buffett, as he prepares to step down from his CEO position, remains optimistic about the US economy, believing that the ongoing changes and challenges do not signal the decline of the US but rather a continuation of historical progress.
In recent news, President Trump criticized the CCP for extorting the US, claiming that China’s economy is crumbling and that they seek negotiations. While China is vocally firm, they have quietly exempted tariffs on a quarter of 131 American goods. Secretary of State Pompeo reveals that China is willing to communicate, suggesting that negotiations will soon begin.
Chinese Public Security Minister Wang Xiaohong has been appointed to assess how to respond to the US administration’s demands on the fentanyl issue to ease bilateral relations and initiate trade talks. It’s also reported that the US is considering a meeting with Mayor Cai of Beijing.
Regarding the recent actions of the Chinese Communist Party in exempting tariffs on certain US goods and their past threats to cut cooperation in fighting drugs, what implications could these actions have?
Previously, the US Secretary of the Treasury mentioned that all options were on the table regarding US-China trade issues, including delisting Chinese companies from US stock exchanges due to potential national security risks associated with ties to the Chinese military. How do you interpret this?
As Taiwan confirmed the completion of the first round of tariff negotiations with the US, parliamentarians disclosed in the US that Taiwan is a top priority for America’s economic and defense interests. Taiwan will not be a bargaining chip in trade negotiations and is irreplaceable.
How do you view the current situation of the Taiwan-US tariff negotiations, and how might they affect Taiwan’s businesses?
Taiwanese media reports that the CCP is set to launch a new wave of economic campaigns, offering tariff exemptions on specific Taiwanese products to lure businesses back to China while requiring Taiwanese firms to not withdraw. Those wanting to divest might face tax investigations or even have to repay years of investments as compensation for China’s losses. There have been reports of China threatening Taiwanese companies with tax audits over the past 30 years.
What is your opinion on the CCP’s new wave of economic campaigns targeting Taiwanese businesses, and what should Taiwanese companies in China do?
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