TAIPEI (Taiwan News) – Taiwan will benefit from the U.S.-China trade truce agreed upon by U.S. President Donald Trump and Chinese leader Xi Jinping, according to a Taipei-based think-tank.

Wang Jiann-chyuan (王健全), vice president of the Chung-Hua Institution for Economic Research (CIER) in Taiwan, said in a press conference on Monday (July 1) that the world can expect some positive developments in the wake of the reprieve, reported the Central News Agency.

The American economy, which economists are predicting may start to slow down early next year, will receive a respite. Likewise, China's pledge to increase its purchase of American goods also strikes a positive note for Taiwan, Wang reckoned.

With Trump hinting at lifting some restrictions on Chinese telecommunications manufacturer Huawei, patriotic sentiments that have brewed in China over the past few months are expected to cool down to some extent. This could help avert further escalation of the crisis, such as boycotts staged against American brands like Apple, he added.

It also comes as good news for Taiwanese tech companies like Taiwan Semiconductor Manufacturing Company, Advanced Semiconductor Engineering, Largan Precision, and MediaTek, which are major contractors for Huawei, the report quoted him as saying.

Wang urged Taiwan, which has suffered a decline in exports for seven consecutive months, to take advantage of the opportunity and assume an active role in boosting domestic demand. More incentives for consumption are needed to help drive growth momentum, according to Wang.

He also suggested that assistance should be pledged to boost research and development strengths for industries and bolster supply chain connections with the U.S.