CNFI releases 2024 White Paper, outlines ways to boost competitiveness

Taipei, Sept. 20 (CNA) The Taiwan-based Chinese National Federation of Industries (CNFI) released its 2024 White Paper Friday, which outlined four main challenges facing Taiwan's industries and raised seven key strategies to the government for boosting industrial competitiveness.

According to the White Paper, the seven key strategies included restructuring an industrial ecosystem that supports Taiwan's socioeconomic development, enhancing infrastructure resilience, establishing Taiwan as a new hub for the global supply chain, and rebuilding a peaceful cross-strait dynamic.

They also included laying the groundwork for AI, reviewing immigration and talent recruitment systems, and creating a fair, feasible carbon fee system that supports industrial competitiveness.

CNFI Vice Chairman Dennis Chen (陳進財) outlined four challenges facing Taiwan's industrial development at a press conference on Friday, during which the CNFI white paper was released.

The challenges included the growing imbalance between Taiwan's industries as the information and communication technology sector rapidly develops while the metal, electrical, and consumer chemistry industries lag in growth.

Another challenge is the lack of labor and talent, which according to Chen, is even more serious than water and electricity supplies.

However, Chen also said that there is an urgent need to address energy concerns to prevent the hindering of the artificial intelligence (AI) industry's progress, given the energy-intensive nature of AI development.

The third challenge arises from geopolitical factors impacting businesses' cross-strait and global operations, particularly China's suspension of tariff reductions on goods on the Early Harvest List under the Cross-Strait Economic Cooperation Framework Agreement and U.S. export controls on high-tech products for national security reasons, Chen said.

The fourth challenge is implementing adequate supporting measures for Taiwan's impending carbon fees. Chen said a lack of these may lead to Taiwan failing to reduce emissions or unfair competition.

Chen urged government efforts to support the transformation of traditional industries, fostering a startup-friendly environment and reforming outdated tax systems to enable an effective industrial ecosystem.

He said that after the value-added business tax was established in 1986, taxes including commodity and stamp tax should have been abolished. However, while the CNFI has made related recommendations for several years, the Ministry of Finance has only stated that further study is needed, he said.

Given the government's annual tax revenue surplus in recent years, Chen argued that the government should not ignore such proposals.

Meanwhile, CNFI Chairman Pan Chun-jung (潘俊榮) said he is planning to meet with President Lai Ching-te (賴清德) in October and that his organization will cooperate with the government to address challenges facing Taiwan's industries.

Pan also expressed hope that the government will prioritize addressing the pressing shortage of workers and skilled talent in the country.