Taipei hails US 15% tariffs ‘home run’ despite fears over US$500 billion cost

Taiwan has secured a US deal slashing export tariffs to 15 per cent after more than nine months of talks, with Taipei hailing the result as a “home run” that will put the island on an equal footing with Japan and South Korea.But observers and opposition parties have raised sharp concerns over Taiwan’s commitment to invest up to US$500 billion in the United States in exchange for the tariff cut.The arrangement could hollow out Taiwan’s industrial base – particularly its prized semiconductor sector – while delivering disproportionate gains for Washington, they warned.Beijing has vehemently objected to the deal. “The Chinese side has consistently and firmly opposed countries that have established diplomatic relations with China entering into any agreements with the Taiwan region,” Guo Jiakun, a spokesman for the mainland foreign ministry, said on Friday.On Wednesday, Zhu Fenglian, spokeswoman for Beijing’s Taiwan Affairs Office, described the expected deal as “economic exploitation” of the island and a plot to drain the lifeblood of its industry.She also condemned Taiwan’s ruling Democratic Progressive Party (DPP) for bowing to US pressure. “[This] will only destroy the development prospects of Taiwan and harm the long-term interests of the Taiwanese people,” she cautioned.Beijing views Taiwan as a part of China, to be reunited by force if necessary. Most countries, including the US, do not recognise Taiwan as an independent state, but Washington is opposed to any attempt to take the self-governed island by force and is committed to supplying it with weapons.