Taiwan's Premier Cho Seeks Bipartisan Support for Massive Economic Resilience Bill

NT$410 Billion Package Aims to Counter US Tariffs, Strengthen Security, and Boost Social Welfare

Taipei, April 28 - Premier Cho Jung-tai (卓榮泰) has initiated a crucial move, meeting with lawmakers from both the ruling and opposition parties to garner support for a comprehensive government bill. This legislation, valued at NT$410 billion (approximately US$12.6 billion), is designed to tackle potential negative impacts from impending American tariffs and fortify Taiwan's economic, social, and homeland security in response to global uncertainties.

Premier Cho clarified that the significant funding will be sourced from the budget surpluses accumulated over previous years, ensuring that the government will not need to increase its debt through additional borrowing.

The ambitious bill earmarks significant allocations: NT$93 billion for industry and employment support; a substantial NT$150 billion to enhance homeland security resilience; and NT$167 billion for various social welfare measures, including subsidies for electricity expenses and crucial injections into insurance funds.

Specifically, the industry support package will offer NT$12 billion in interest subsidies to bolster trade financing, NT$5 billion for amplified small business loan guarantees, and a considerable NT$25 billion for research and development grants aimed at fueling innovation within businesses. On the national security front, funds will support new patrol vessels to address Chinese maritime activities, the construction of advanced storage and backup facilities for essential supplies, and significant upgrades to Taiwan's cybersecurity defenses, according to Premier Cho.

The bill also incorporates subsidies to alleviate the burden on Taiwan Power Co. (Taipower) for its absorbed electricity costs over the past three years, with a dedicated budget of NT$100 billion for this purpose.

Fu Kun-chi (傅崐萁), the caucus whip of the Kuomintang (KMT), the main opposition party, acknowledged his party's support for measures countering U.S. tariffs, but expressed concerns about the allocation, noting that only 23 percent of the funding is directly linked to trade-related measures. Fu proposed that "non-urgent parts" of the bill, such as the subsidies for Taipower, could be better addressed through a separate budgetary process.

Wang Hung-wei (王鴻薇), KMT caucus secretary-general, criticized the considerable expansion of the act, from an initial NT$88 billion to the current NT$410 billion, and questioned why the industry assistance saw only a marginal increase despite the larger overall budget.

Huang Kuo-chang (黃國昌), the caucus whip of the Taiwan People's Party (TPP), indicated his party's full support for financial aid for businesses and workers. However, Huang criticized the government for the lack of a detailed impact assessment report, suggesting that the government may be attempting to "smuggle" previous spending proposals into the new bill without providing sufficient justification. Chang Chi-kai (張啓楷), TPP deputy caucus convener, further asserted that the budget's structure violates fiscal discipline by merging unrelated projects into an urgent bill intended to address tariffs.

Premier Cho emphasized the government's key objective: to negotiate tariffs with the United States at rates that "no higher than those [imposed by the U.S.] on competitor countries," thereby maintaining Taiwan's industrial competitiveness and safeguarding consumer practices.