Gov't cites 'Taiwan model' after reports U.S. wants at least US$350 billion

Taipei, Nov. 13 (CNA) A Cabinet spokesperson on Thursday said negotiators are pursuing a "Taiwan model" in trade talks with the United States, following reports that Washington is seeking an investment pledge of between US$350 billion and US$550 billion.

Politico reported Wednesday that U.S. President Donald Trump's administration is currently "haggling" over the final amount, which would fall between the levels of investment pledges made by South Korea and Japan.

Asked about the report, Cabinet spokesperson Michelle Lee (李慧芝) said Taiwanese negotiators, after consulting with industry representatives, were approaching tariff negotiations by exploring prospective supply chain collaborations under a "Taiwan model."

"The Taiwan model is driven by companies' international branching strategies, prompting them to plan investments in the United States, to be closer to their clients and boost competitiveness, while the government provides financial and credit guarantee support," Lee said.

"The Taiwan model, therefore, is different from investment models between the U.S. and Japan or South Korea, and cannot be directly compared," Lee said.

Lee also confirmed that Taipei is seeking to have the 20 percent tariff currently imposed by the U.S. reduced, and ensure that the tariff rate will not be added on top of existing most-favored-nation tariffs.

She added that Taiwan is also working to secure most-favorable-nation treatment under Section 232 of the Trade Expansion Act as Washington conducts a national security investigation into semiconductor imports.

Taiwan's semiconductor industry could face higher tariffs than those already in place as a result of the ongoing U.S. Commerce Department investigation launched on national security grounds.

"Following the fifth round of in-person negotiations in early October, the Taiwan and U.S. negotiating teams also held another virtual meeting and are now discussing the exchange of written documents," Lee said.

Commenting on the Politico report, Premier Cho Jung-tai (卓榮泰) said some information on the tariff negotiations has not been substantiated, but that this does not impact ongoing talks or their progress.