TAIPEI (TVBS News) — The Democratic Progressive Party's (DPP, 民進黨) Department of China Affairs (中國部) director warned on Monday (Oct. 28) that Taiwan faces four significant risks due to China's shift from economic incentives to coercion. Director Wu Chun-chih (吳峻鋕) identified the primary challenges as the economic downturn, infiltration and division, war threats, and political control.
Wu emphasized China's ineffectiveness in stabilizing its markets, with sluggish stock and real estate sectors. National Chengchi University (NCCU, 政治大學) Professor Huang Jr-tsung (黃智聰) noted the persistent uncertainty in China's economy, suggesting potential adverse effects even if growth targets are met. Meanwhile, National Yunlin University of Science and Technology (國立雲林科技大學) professor Cheng Ping-cheng (鄭政秉) advised the government to warn Taiwanese businesses about investment risks and strengthen global supply chains.
Chung-Hua Institution for Economic Research (中華經濟研究院) assistant researcher Wang Guo-chen (王國臣) argued that China's economic strategies toward Taiwan are becoming ineffective. Wang urged Taiwan to diversify its industrial chains and financial exposure.
Cheng advocated for strengthening international economic alliances when asked about the potential increase in war risks due to reduced economic interdependence. At the same time, Huang suggested that China's stance on Taiwan's sovereignty could heighten war risks.
Addressing rumors of a proxy company ordering TSMC (台積電) chips for Huawei (華為), Cheng supported heightened sanctions and controls to prevent China from using advanced technology for defense. Huang agreed with implementing mandatory controls.