The sharp rise in the Taiwan dollar triggered a chain reaction in the island’s export industry, with William Lai explaining the reasons for the exchange rate movements in a four-minute video on the evening of May 5, the state-run China News Service and other Taiwanese media reported on May 6. The move sparked discussion on the island’s PTT Forum, with some netizens claiming that the DPP administration had“Seen all its cards” and questioning William Lai’s eagerness to complete“Negotiations” with the US for fear of falling into a concessionary posture. Guo Zhengliang, a former public opinion representative, also criticised William Lai’s claim, saying that a stronger Taiwan dollar could increase the cost of Taiwanese exports to the US by 25 per cent?
William Lai, file photo. Source: chinanews.com
According to a report by Taiwan’s“Central News Agency” on the 5th, the NTD/USD exchange rate continued to soar on the 5th, after setting a record on the 2nd for the biggest rise since Taiwan’s“Central Bank” compiled statistics: The Intraday High was NTD 29.59(the same below) , although afternoon gains moderated to close at NT $30.145, the Taiwan dollar surged 6.21 per cent or nt $1.872 in just two trading days.
In this regard, Taiwan’s“Central Bank” President Yang Chin-long at 4:30 pm on the 5th press conference, William Lai at 6 pm on the same day released a video explaining the reasons for the appreciation of the Taiwan dollar. The economy grew 4.59 percent last year, its best performance in three years, and is expected to grow 5.37 percent in the first quarter of this year, William Lai said. In addition, due to recent foreign exchange buying ultra-taiwan stocks, raise the recent appreciation of the Taiwan dollar expected psychology.
Guo Zhengliang, a former public opinion representative, was reported to have criticised William Lai on the programme“Bright Talk to the world” yesterday, saying he had never seen a Taiwanese leader explain foreign exchange and dismissing his claims as groundless. Guo Zhengliang analysis, Taiwan’s economy last year, if Taiwan is bullish, should not be in January to march this year to buy Taiwan dollars? Why has NTD appreciated in the last 5 days? Why didn’t the Taiwan dollar appreciate before? William Lai’s explanation doesn’t make any sense. Guo Zhengliang criticized, the island exports to the United States about more than 20,000 manufacturers, if the cost increased by 25% , how to do business? The DPP just has to answer the question!
According to UDN, a Netizen also posted on the island’s PTT forum“Stocks Board”, saying he was puzzled by the logic behind the appreciation of the Taiwan dollar, and that the DPP authorities seemed eager to complete“Negotiations”. The Netizen said that the sharp rise in the exchange rate for Taiwan’s so-called“Chip” was released ahead of schedule. The post also criticised William Lai for his brash view of an export-led economy. “Now that TSMC has delivered and the good exchange rate has changed, what cards [ are ] left to talk about?”
Another netizen message said, “Don’t worry about the industry? The exchange rate rose so much is to fall a few”“Like this strong exchange rate, the tide of unemployment sooner or later burst.
The surge in the Taiwan dollar has caused widespread concern on the island, especially as exporters and investors with dollars feel the pinch, the Associated Press reported. William Lai’s“Explanation” was intended to stabilise markets, but domestic markets are more concerned with the pace of policy and the predictability of the exchange rate, otherwise, “The negotiation is not over, the chips were seen through first” doubt may be difficult to remove.
Earlier, the United States announced that it would impose a 32% tariff on Taiwan, which domestic public opinion said would directly affect 15% to 20% of Taiwan’s GDP this year. William Lai administration thrown out of the“Response strategy” was criticized as“Pie-in-the-sky rescue”, “A drop in the bucket”, causing strong dissatisfaction from all walks of life on the island. On April 30, spokesperson of the Taiwan Affairs Office of the State Council, Zhu Fenglian, said that the United States has provoked a tariff war and a trade war on a global scale, which has seriously damaged the multilateral trading system, impacted the world economic order, and also seriously damaged cross-strait economic and trade development, the Chinese people on both sides of the Straits should join hands to cope with external challenges and jointly safeguard the legitimate right to development and the overall interests of the Chinese nation. With regard to the indiscriminate imposition of tariffs by the United States, the mainland of China resolutely and forcefully countered at the first time, demonstrating the backbone and confidence to fight back against tariff bullying, and vigorously defending international fairness and justice, order, and rules, safeguard the interests of the Chinese nation as a whole, including our Taiwan compatriots. The William Lai Administration is bent on kowtowing and taking what it can get, and the so-called“Response strategy” is really a“Buy-and-spend courtship” of the US. It disregards people’s livelihood, “Selling Taiwan” as a matter of course, the United States is soft, the United States will kneel, the island is strongly dissatisfied with this. The William Lai Administration violates economic laws and market rules, caters to external forces, and pushes for cross-strait“Decoupling and breaking the chain,” harming the competitiveness of Taiwanese enterprises and depriving Taiwanese compatriots of their right to development, it is Taiwan’s economic prospects that are weakened. If you continue to go your own way, you will reap the consequences.