Taiwan asks state-owned banks to ‘properly handle’ China exposure | Business and economy | Bot To News

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

Taiwan has urged state-owned banks to “properly address” 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 reached an all-time low, at a time when China is putting military and diplomatic pressure on the self-ruled island to accept Beijing’s sovereignty.

Asked by a lawmaker at a parliamentary session on Monday whether state-owned banks should re-examine their investment risks in China, Su said: “State-owned banks have already been required to properly address their exposure to China.”

Taiwan’s major state-owned banks include Bank of Taiwan, Taiwan Cooperative Bank Ltd and Land Bank of Taiwan Co Ltd.

Taiwan complained last week that China had banned major imports of Taiwanese food and drink, which the government said was part of Beijing’s pressure on Taiwan’s food, agriculture and water sectors.

Agriculture and food and beverage production are not significant parts of Taiwan’s semiconductor-oriented 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 of China’s latest ban on the liquor sector was “not bad”, putting the value of affected exports at about 1 billion New Taiwan dollars ($32.55 million).

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