Taiwan asks state banks to ‘appropriately handle’ China exposure

Finance Minister Su Jain-rong makes remarks in response to query about dangers of investing in China.

Taiwan has requested state-owned banks to “appropriately deal with” their publicity to China, Finance Minister Su Jain-rong has stated, amid commerce and political tensions between Taipei and Beijing.

Taiwan’s monetary regulator stated final month that Taiwanese banks’ publicity to China had hit their lowest-ever degree, at a time when China has been pressuring the self-ruled island militarily and diplomatically to simply accept Beijing’s sovereignty.

Requested by a legislator at a parliamentary session on Monday whether or not state-owned banks needs to be reexamining their funding dangers in China, Su stated: “State-owned banks have already been required to actively deal with their China publicity appropriately.”

Taiwan’s large state-owned banks embrace Financial institution of Taiwan, Taiwan Cooperative Financial institution Ltd, and Land Financial institution of Taiwan Co Ltd.

Taiwan complained final week that China has banned extra Taiwanese meals and beverage imports in what the federal government says is a part of a strain marketing campaign by Beijing focusing on the Taiwanese meals, agriculture and aquatic sectors.

Agriculture and food and drinks manufacturing will not be important elements of Taiwan’s semiconductor-oriented economic system.

However the farming and fishing neighborhood is basically based mostly in elements of the island that historically assist the ruling Democratic Progressive Social gathering, particularly in southern Taiwan.

Su stated the impact on the alcoholic drinks sector from the newest Chinese language ban was “not dangerous”, placing the worth of the affected exports at about 1 billion New Taiwan dollars ($32.55m).