Mainland says DPP's so-called trade deal with US sells out Taiwan's interests

BEIJING -- The so-called "consensus" reached by Taiwan's Democratic Progressive Party (DPP) authorities in tariff talks with the United States amounts to a betrayal of the well-being of Taiwan people and the interests of its industrial development, a Chinese mainland spokesperson said on Wednesday.

Peng Qing'en, spokesperson for the State Council Taiwan Affairs Office, made the remarks at a press conference when asked to comment on the recent tariff talks between the DPP authorities and the United States.

The US Department of Commerce announced that Taiwan will make new, direct investments totaling at least $250 billion in the United States through its semiconductor and technology enterprises, and will provide credit guarantees of at least $250 billion for Taiwan companies investing in the United States, in exchange for a reciprocal US tariff rate on Taiwan-made goods of no more than 15 percent.

The DPP authorities claimed that these tariff talks with the United States had achieved their goals.

"The so-called trade talks are in essence the United States using tariffs to exert maximum pressure, coercing Taiwan to sharply increase investment in the United States and attempting to hollow out Taiwan's advantageous industries," the spokesperson said.

The DPP's tolerance of the United States plundering Taiwan's industries will "only completely jeopardize the island's development prospects," Peng noted.

Responding to a query about US Commerce Secretary Howard Lutnick's remarks that Washington aims to shift 40 percent of Taiwan's semiconductor supply chain capacity to the United States, Peng said such a move would wipe out the island's core industrial strengths.

The outcome of the tariff talks has fully proved that seeking "Taiwan independence" is a dead end and that relying on external forces is futile, said Peng.

At a recent meeting with a delegation from the US state of Arizona, Taiwan leader Lai Ching-te said he hoped that companies such as Taiwan Semiconductor Manufacturing Co. (TSMC) would maintain a long-term presence in the United States and create well-paid local jobs.

Commenting on these remarks, Peng stated that the United States has always put its own interests first, and the so-called US-Taiwan trade and supply chain cooperation endeavor would only drain Taiwan's economy dry.

It's reported that labor costs at TSMC's US plant are about twice those in Taiwan, while its gross revenue is only around one-eighth of that generated on the island, Peng said, adding that further increasing TSMC's investment in the United States would only undermine Taiwan's industrial foundations.