Taiwan’s business groups call for export shift to ASEAN amid Brexit shock

TW business groups call for export shift to ASEAN amid Brexit shock

As Britain voted to leave the European Union after the referendum campaign, Taiwan should shift its export focus from Europe to China and ASEAN, said the Chairman of the Chinese National Association of Industry and Commerce (CNAIC), Lin Por-fong.

Britain on Friday voted to leave the 28-nation European Union, with 52% of the votes in favor for leave, shocking the markets but delighting the “leave” campaigners.

Chairman of the National Association of Small and Medium Enterprises, Lin Huei-Ying, expressed her concerns that Brexit could create a domino effect in EU, and further crumble the union.

In an interview, Lin Por-fong said that Taiwan’s exports to the EU account for around 10 percent of the entire trade, but as Britain’s exit from the EU will get under way, Taiwanese enterprises would likely to shift their exports to China and ASEAN.

The shift of focus to ASEAN countries aligns with the new government’s “New Southward Policy, Lin added, hopefully that the government would come up with a comprehensive policy plan to encourage such action as soon as possible.

Lin Huei-Ying also said that Taiwan would be expecting some negative impact of Brexit, certain adjustments are needed to be made in terms of export markets.

She added, given the EU has long been supported by Britain and Germany, huge pressure may land on Germany after the British withdrawal, increasing the challenges faced by the governments of Germany and France.

If Brexit triggered a domino effect in Europe, she said, the union would crumble, and the global economy will suffer.