Wei Canwen, chairman of the Machinery Association, said that China is the biggest beneficiary of government controls on the export of machine tools and equipment to Russia. (Photo by reporter Lin Jinghua)
[Reporter Lin Jinghua/Reported from Taipei]Wei Canwen, chairman of the Machinery Association, said today (27th) that the biggest beneficiary of the government’s control over the export of machine tools and equipment to Russia is China. It also takes several years for Taiwanese manufacturers to open up the market, because the export ban is even more severe. We have no choice but to call on the government to find ways to provide guidance or subsidies to affected manufacturers.
It was recently reported that machine tools were exported to Russia through a third place, and the Ministry of Economic Affairs further expanded controls. Wei Canwen mentioned this matter. The industry spends a lot of effort to develop a country and market. In the past, it took many years to develop the Russian market before entering it. Now because of the war between Ukraine and Russia, the United States has imposed sanctions, and our country has followed suit and banned tools. Regarding the export of machinery and equipment, from the perspective of the trade union, manufacturers are actually required to cooperate with the policy, and everyone has cooperated.
However, Russia still re-exports through third places such as Turkey. “Taiwanese manufacturers are helpless,” and the industry is unwilling. Wei Canwen also mentioned that the biggest beneficiary of the control of Taiwanese equipment is actually China. He said that China’s export of machine tools to Russia increased by 60% last year. “We are giving some of our hard work to the market in vain, as if we are giving it to China unconditionally.”
Wei Canwen emphasized that when the economy is subject to political interference, manufacturers will always suffer the consequences. He called on the government to come up with relevant strategies and provide subsidies or guidance so that businesses can feel psychologically balanced.
Regarding market development, Wei Canwen also said that in the past, a lot of focus was placed on China, but the direction needs to shift, especially under the call of American manufacturing, to the US-Mexico border, Central and South America, Africa, the Middle East, etc. He reminded that manufacturers must go out and not Limited to China and Southeast Asia markets.
In addition, Wei Canwen was also asked about the exchange rate trend. He said that the New Taiwan dollar exchange rate trend depends on market demand, but a strong New Taiwan dollar will affect competitiveness. “The exchange rate will always be a pain for the machinery industry.” He still hopes that the exchange rate will be in line with competing countries. To maintain a similar trend, the ideal price is still NT$32 against the US dollar.
When it comes to the possible increase in electricity prices in April, Wei Canwen also said that Taiwan’s electricity prices are already the cheapest in Southeast Asia. It is not an option for Taipower to keep losing money. People’s livelihood electricity prices have not been adjusted this year, and Taipower does not increase prices. It will only last one year. It lost hundreds of billions of yuan, but in the end it was still government subsidies.
He also said that electricity prices will affect competitiveness, but it is not the key factor. The most important thing is product differentiation and customization. All equipment must be differentiated and customized, and cannot win based on price, and called on manufacturers to use it quickly. Green electricity, create your own electricity.
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2024-02-27 12:41:30
