Vice Premier touts 'Taiwan model' for U.S.-bound investment

Taipei, Oct. 2 (CNA) Vice Premier Cheng Li-chiun (鄭麗君) on Thursday touted the government's approach to expanding investment in the United States, following the fifth round of Taiwan-U.S. negotiations held from Sept. 25-29, as having "received a positive response" from Washington, without elaborating.

Cheng said the "Taiwan model" emphasizes enterprise-led investment planning, government financial guarantees and a government-to-government model for developing industrial clusters.

She explained that Taiwan's model differs from those of Japan, South Korea and the European Union, since it relies on businesses to invest directly, while the government integrates planning, provides financial support and works with the U.S. to create favorable conditions for cluster development.

Cheng made the comments at a press conference in Taipei, where she was joined by Yang Jen-ni (楊珍妮), trade representative of the Office of Trade Negotiations, and Ho Chin-tsang (何晉滄), vice minister of economic affairs, to brief reporters on the recent talks.

Taiwan's government has sought three main concessions in the negotiations: to reduce the "reciprocal" tariff rate, receive comprehensive preferential treatment covering semiconductors and other items under Section 232 of the U.S. Trade Expansion Act, and receive improved investment opportunities in the U.S.

The U.S. tariff policy took effect Aug. 7, setting Taiwan's provisional tariff rate at 20 percent.

There have been five rounds of talks so far this year, starting with a video conference on April 11 and followed by meetings on May 1, June 25, July 8, late July to early August, and Sept. 25-29.