TAIPEI (TVBS News) — Taiwan's Mainland Affairs Council (MAC, 陸委會) warned Friday (Oct. 3) that China may wage cognitive warfare to influence Taiwanese views of U.S. policies. The council, Taiwan's top cross-strait policy body, urged businesses to prioritize national security and reduce dependence on Chinese markets following its 72nd advisory committee meeting.
The meeting, themed "The Impact of the U.S.-China Trade War on International Geopolitics, China's Economy, and Cross-Strait Trade" (美中貿易戰對國際地緣政治、中國大陸經濟、兩岸經貿之影響與因應), examined trade war impacts on global geopolitics and cross-strait economic relations. Officials cautioned against over-dependence on China's, the People's Republic of China's, market, citing potential boycotts or discriminatory policies. Scholars recommended Taiwan adopt flexible strategies balancing national security with economic growth.
The committee indicated potential U.S. tariff increases on China could force Beijing to redirect exports toward European Union and ASEAN markets. Such diversions risk flooding these regions with surplus Chinese goods, potentially disrupting established trade relationships and market stability across multiple continents.
China's economy faces persistent deflationary pressures from weakened consumer demand and declining property values since COVID-19. Local governments have accumulated substantial debt, worsening implicit financial obligations across the country. The committee expects China's "15th Five-Year Plan" (十五五規劃) will emphasize technology advancement to preserve manufacturing dominance.