Taiwan asks state banks to ‘appropriately manage’ exposure to China | Business and economy

Finance Minister Su Jain-rong makes remarks in response to a question about the risks of investing in China.

Taiwan has asked state-owned banks to “appropriately manage” their exposure to China, Finance Minister Su Jain-rong said, amid trade and political tensions between Taipei and Beijing.

Taiwan’s financial regulator said last month that Taiwanese banks’ exposure to China had hit an all-time low, at a time when China was pressuring the self-governing island militarily and diplomatically to accept Beijing’s sovereignty.

Asked by a lawmaker in a parliamentary session on Monday whether state-owned banks should reconsider their investment risks in China, Su said: “State-owned banks have already been required to actively manage their exposure to China. appropriately.”

Major state-owned banks in Taiwan include Bank of Taiwan, Taiwan Cooperative Bank Ltd and Land Bank of Taiwan Co Ltd.

Taiwan complained last week that China has banned more imports of Taiwanese food and drink in what the government says is part of a pressure campaign by Beijing targeting Taiwan’s food, beverage and beverage sectors. agriculture and water.

Agriculture and food and beverage production are not significant elements of Taiwan’s semiconductor-driven economy.

But the farming and fishing community is largely based in parts of the island that traditionally support the ruling Democratic Progressive Party, particularly in southern Taiwan.

Su said the effect on the alcoholic beverage sector of China’s latest ban was “not bad”, putting the value of affected exports at around 1 billion New Taiwan Dollars ($32.55 million).