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MOF says politics did not stop tax deal

The Ministry of Finance yesterday said the breakdown of cross-strait negotiations on a tax pact on Monday was mainly the result of a dispute over levying income tax on China-based Taiwanese businesspeople according to where they reside or where they get paid.

The ministry said the breakdown was not related to sovereignty, apparently contradicting comments a day earlier by Premier Wu Den-yih (吳敦義), who said the deal was delayed because the treaty would have treated Taiwan the same as Hong Kong.

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Think tank urges US to strengthen Taiwan relations

A Washington think tank is advising US President Barack Obama to foster closer diplomatic, defense and economic relations with Taiwan to offset China’s “potentially coercive” embrace.

In an eight-page policy brief, the Center for a New American Security (CNAS) concludes that US cross-strait policy remains based on a “tangled and complex web of decades-old doctrine, law and joint statements.”

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Newsflash

Taiwan has “never made any commitment to a 50-50 split on manufacturing chips, and would not agree to such terms,” Vice Premier Cheng Li-chiun (鄭麗君) said yesterday after returning from a fifth round of in-person tariff negotiations with the US.

US President Donald Trump’s administration wants Taiwan to adopt a “50-50 split” on semiconductor manufacturing, with half of the chips used in the US to be made domestically, US Secretary of Commerce Howard Lutnick said in an interview with NewsNation on Sunday.

The concept differs from the investment direction being discussed under negotiations regarding supply chain cooperation, the Cabinet said in a statement yesterday.