Lien Hsien-ming: Cross-Strait Industries Shift from Complementary to Competitive, 10 Measures for Taiwan Have Limited Effect
Lien Hsien-ming, President of CIER, stated that China's 10 measures for Taiwan, announced after the Zheng-Xi meeting, have limited effect on stimulating domestic demand, similar to past initiatives. He noted that cross-strait industries have transitioned from complementary to competitive, with traditional Chinese industries directly competing with Taiwan, leading to significant price pressure. CIER forecasts Taiwan's economic growth rate at 7.22% for this year, but inflation is nearing the 2% alert level at 1.98%.
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- 📰 Published: April 17, 2026 at 17:25
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- 🤖 AI Analyzed: April 17, 2026 at 18:08 (36 min after Collected)
(Central News Agency reporter Pan Tzu-yu, Taipei 17th) After the conclusion of the Zheng-Xi meeting, the Taiwan Affairs Office of the CPC Central Committee announced 10 measures for Taiwan. Lien Hsien-ming, President of the Chung-Hua Institution for Economic Research (CIER), stated that measures such as individual travel and opening up agricultural product imports have been implemented in the past, and their effect on stimulating domestic demand is limited. Moreover, cross-strait relations have shifted from being complementary to competitive. Traditional Chinese industries are now in direct competition with Taiwan, leading to significant price pressure. If the "involution" (internal competition) in China can be alleviated, it would be more beneficial for Taiwan's industries.
CIER today released its latest economic forecast. Despite disruptions from the Middle East conflict, due to the booming development and strong demand for AI technology, the estimated economic growth rate for this year is 7.22%. However, inflationary pressure has slightly increased, with the predicted annual Consumer Price Index (CPI) growth rate at 1.98%, approaching the 2% inflation alert line.
When asked by the media whether the 10 measures for Taiwan announced by the Taiwan Affairs Office of the CPC Central Committee on the 12th, after the Zheng-Xi meeting, including the import of Taiwanese agricultural and fishery products to mainland China and the promotion of resuming individual travel for residents of Shanghai and Fujian Province to Taiwan (main island), would help boost the economy.
Lien Hsien-ming stated that measures such as individual travel and opening up agricultural products have been implemented in the past, and their effect on stimulating domestic demand is limited. What truly affects industries are issues like China's overcapacity and "involution."
Lien Hsien-ming frankly said that a very realistic issue across the strait is the shift from complementarity to competition, especially in traditional industries. Currently, China and Taiwan are in direct competition, and price pressure is immense, particularly felt in the petrochemical industry. Therefore, if China's "involution" can be somewhat alleviated, it would be more helpful to Taiwan's industries.
Lien Hsien-ming added that in recent years, China has vigorously promoted AI, but it is difficult for Taiwan to seize business opportunities in this area, partly because the United States already has many orders. As for non-AI industries, Taiwan is mostly replaced by the red supply chain. Now, cross-strait relations are leaning towards competition. (Editor: Lin Shu-yuan) 1150417
CIER today released its latest economic forecast. Despite disruptions from the Middle East conflict, due to the booming development and strong demand for AI technology, the estimated economic growth rate for this year is 7.22%. However, inflationary pressure has slightly increased, with the predicted annual Consumer Price Index (CPI) growth rate at 1.98%, approaching the 2% inflation alert line.
When asked by the media whether the 10 measures for Taiwan announced by the Taiwan Affairs Office of the CPC Central Committee on the 12th, after the Zheng-Xi meeting, including the import of Taiwanese agricultural and fishery products to mainland China and the promotion of resuming individual travel for residents of Shanghai and Fujian Province to Taiwan (main island), would help boost the economy.
Lien Hsien-ming stated that measures such as individual travel and opening up agricultural products have been implemented in the past, and their effect on stimulating domestic demand is limited. What truly affects industries are issues like China's overcapacity and "involution."
Lien Hsien-ming frankly said that a very realistic issue across the strait is the shift from complementarity to competition, especially in traditional industries. Currently, China and Taiwan are in direct competition, and price pressure is immense, particularly felt in the petrochemical industry. Therefore, if China's "involution" can be somewhat alleviated, it would be more helpful to Taiwan's industries.
Lien Hsien-ming added that in recent years, China has vigorously promoted AI, but it is difficult for Taiwan to seize business opportunities in this area, partly because the United States already has many orders. As for non-AI industries, Taiwan is mostly replaced by the red supply chain. Now, cross-strait relations are leaning towards competition. (Editor: Lin Shu-yuan) 1150417
FAQ
What is the impact of China's measures on Taiwan's economy?
According to CIER President Lien Hsien-ming, measures like individual travel and agricultural product imports have limited effect on stimulating domestic demand, similar to past initiatives. He suggests that alleviating China's overcapacity and 'involution' would be more beneficial for Taiwan's industries.
What are Taiwan's economic growth and inflation forecasts for 2026?
CIER forecasts Taiwan's economic growth rate at 7.22% for 2026. The annual Consumer Price Index (CPI) growth rate is predicted to be 1.98%, approaching the 2% inflation alert line.