According to the economic data, Taiwan’s economy is doing better than its regional coequals but a closer investigation shows that the economic development is only clustered in a few high-tech industries which include electronics, communications, and semiconductors. There is a gap between high-tech industries and other local industries because of supportive government policies which resulted in bigger investments in the high-tech industries.
Many of the other local industries are trying hard to survive because of structural hindrance. these industries need to keep functioning as they employ the majority of the nation. If they fail, it will destructively affect the society.
The government needs to change its policies. For instance, it can shift some of its resources from high-tech industries to the ones struggling to survive, this will help save the average productivity in industries from decreasing. Moreover, there is a need for technological advancements in the non-tech industries
The government is unsuccessful in promoting research and development in the manufacturing, the service sector, and agriculture-related sectors. Taiwan has fallen behind its other trading partners because of utilizing an excessive amount of its resources in the high-tech industries.
Sock manufacturing has faced rivalry in developing markets like China. As disclosed by the Chinese-language Liberty Times the export value has fallen from US$118.91 million to US$73.79 million. Manufactures still believe to expand even after facing a downfall of about 20 percent over the past 10 years but face everlasting issues such as unavailability of land and capital.
The trade conflict between the US and China creates favorable circumstances for Taiwan’s high and low-tech industries but to take advantage of it, the government must aid struggling industries to advance equipment. To help increase industrial research government could provide education to the workers.