Reference News Network, October 9 report: According to the website of Singapore's "The Straits Times", Taiwan is reported to be the world's largest buyer of Russian naphtha. The ruling party legislators are worried that this move may face U.S. tariff retaliation. Lin Ming-hsin, head of the authorities' Department of Economic Affairs, said that Formosa Plastics indeed purchased Russian naphtha, but the manufacturers are willing to cooperate in stopping the procurement.

The UK's "The Guardian" reported earlier this month that despite participating in the sanctions against Russia, Taiwan has become the world's largest buyer of Russian naphtha. In the first half of this year, Taiwan imported $1.3 billion worth of Russian naphtha, with a monthly import volume almost six times the average level of 2022.

Naphtha is a crude oil product and a raw material for chemicals needed in semiconductor and electronic component manufacturing. Semiconductor and electronic component manufacturing are the pillars of Taiwan's economy.

According to the report, on October 8, Legislative Yuan member Kuo Kuo-wen pointed out that former U.S. President Trump said that if the purchase of Russian crude oil continues, "reciprocal tariffs" will be increased by another 20%, with India as a previous example.

In addition, Russian naphtha accounts for 45% of Taiwan's imports. If the supply is cut off, it will affect Taiwan's "security," so Kuo asked the authorities' Department of Economic Affairs how to handle it.

Lin Ming-hsin said that after the Russia-Ukraine conflict broke out, the CPC Corporation stopped importing Russian naphtha, but Formosa Plastics indeed purchased it. The authorities' Department of Economic Affairs has already communicated with them and also asked for the opinions of the EU. Formosa Plastics believes it complies with the relevant regulations of the G7 and the EU.

Regarding the possibility of being subjected to additional U.S. tariffs like India, Lin Ming-hsin said he could not predict it, but Formosa Plastics is willing to cooperate. "If the EU says next year that it cannot buy, it will not buy."

Original text: https://www.toutiao.com/article/7559087641484968475/

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