More than 60 Taiwanese companies mull Taiwan expansion amid trade war

Government strives to lure Taiwanese firms into local investment

Taipei skyline. (Photo by unsplash user Tom Ritson)

Taipei skyline. (Photo by unsplash user Tom Ritson)

TAIPEI (Taiwan News) – Taiwan’s Ministry of Economic Affairs (MOEA) said that more than 60 Taiwanese companies are considering expanding their Taiwan operations, amid concerns stemming from the U.S.-China trade war, reported CNA.

The Taiwan government is seeking to incentivize Taiwanese firms to invest in Taiwan, through a host of new government policies and advisory services provided by the MOEA and Ministry of Finance.

The U.S.-China trade war has been identified as a significant economic risk by a range of analysts including U.S. financial services giant Moody’s and the Taiwan government, as well as local and international think tanks. CEO of TSMC (台積電), C.C. Wei (魏哲家), said that the trade war will affect all of Taiwan’s industries last November.

The trade war is bringing about significant uncertainty for both businesses and markets, and giving pause for thought for Taiwanese businesses with manufacturing and service bases in China.

In response to this, the MOEA announced a two-pronged plan to help industries affected by the U.S.-China trade war in August 2018, while the central government has tabled a host of reforms as well as established a new advisory office for Taiwanese and international businesses.

Some Taiwanese electronics manufacturers like Delta Electronics (台達電子), New Kinpo Group (新金寶集團), and Merry Electronics Co. (美律實業股) have announced plans to move manufacturing to Southeast Asia, while a host of Taiwanese electronics, bicycle, and other companies have announced intention to expand in Taiwan.

The MOEA said that a number of Taiwanese companies had applied for help from the government to expand their Taiwan operations, but did not provide specific details, reported CNA.

Song Hsiu-ling (宋秀玲), deputy head of the taxation department of the Ministry of Finance, said that the Taiwan government is doing its best to help shield Taiwanese companies from potential effects of the trade war, reported CNA.

Song added that companies also need to help themselves by understanding, planning, and grasping opportunities stemming from the trade war.