Taiwan’s advanced research and development (R&D) capability and government incentives have attracted US and other foreign investment, according to the US government’s Investment Climate Statements report, which was released on Wednesday.
Taiwan “is an important market in regional and global trade and investment” and has played “a dominant role” in the global technology supply chain because the export-dependent economy has a highly skilled workforce that contributes to R&D, the report said.
Taiwanese authorities have provided incentives to attract foreign direct investment (FDI) from foreign companies and Taiwanese firms operating overseas, said the report, which was released by the US Department of State.
Favorable terms provided by Taiwan to boost inward FDI include tax incentives, tariff exemptions and low-interest loans, as well as a reshoring incentive program launched in 2019 to help Taiwanese companies with operations in China invest more at home, it said.
Under such circumstances, the nation’s finance, wholesale and retail sectors, as well as electronics sectors have been the main targets for overseas investors, the report said.
The US is Taiwan’s second-largest source of FDI, following the Netherlands, it said.
US-based FDI in Taiwan was US$17.3 billion in 2019, the report said, citing US Department of Commerce data.
US investors have focused on Taiwan’s advanced technology, digital, traditional manufacturing and services sectors, it said.
In addition, some Taiwanese and foreign investors consider the nation “a strategic relocation alternative to insulate themselves against potential supply chain disruptions resulting from regional trade frictions,” the report said.
However, there are some “structural impediments” in Taiwan’s investment environment, such as market influence exerted by domestic and state-owned enterprises in utilities, as well as the energy, postal, transportation, financial and real-estate sectors, it said.
The government has placed caps on FDI and foreign indirect investment in sectors it deems sensitive, the report said.
In addition, foreign investment in sensitive industries is “subject to heightened regulatory and political scrutiny,” it added.
Investments in media firms or advanced technology sectors, such as semiconductors, are closely scrutinized for reliance on Chinese capital for national security reasons, the report said.
“Taiwan’s National Security Bureau has participated in every People’s Republic of China-related investment review meeting regardless of the size of the investment,” it said, adding that “blocked deals in recent years have reflected the authorities’ increased focus on national security concerns.”
Taiwan approved 1,313 applications for overseas Taiwanese and foreign investment from January to last month, Investment Commission data showed.
Among the approved investments, 20 involved Chinese capital, a year-on-year decrease of 64.29 percent, the commission’s data showed.
The annual US report, which examines the business climate in more than 170 economies, is prepared by US economic officials in embassies and missions around the world, the State Department said.
The manufacture of the remaining 28 M1A2T Abrams tanks Taiwan purchased from the US has recently been completed, and they are expected to be delivered within the next one to two months, a source said yesterday. The Ministry of National Defense is arranging cargo ships to transport the tanks to Taiwan as soon as possible, said the source, who is familiar with the matter. The estimated arrival time ranges from late this month to early next month, the source said. The 28 Abrams tanks make up the third and final batch of a total of 108 tanks, valued at about NT$40.5 billion
A group from the Taiwanese Designers in Australia association yesterday represented Taiwan at the Midsumma Pride March in Melbourne. The march, held in the St. Kilda suburb, is the city’s largest LGBTQIA+ parade and the flagship event of the annual Midsumma Festival. It attracted more than 45,000 spectators who supported the 400 groups and 10,000 marchers that participated this year, the association said. Taiwanese Designers said they organized a team to march for Taiwan this year, joining politicians, government agencies, professionals and community organizations in showing support for LGBTQIA+ people and diverse communities. As the first country in Asia to legalize same-sex
Travel agencies in Taiwan are working to secure alternative flights for travelers bound for New Zealand for the Lunar New Year holiday, as Air New Zealand workers are set to strike next week. The airline said that it has confirmed that the planned industrial action by its international wide-body cabin crew would go ahead on Thursday and Friday next week. While the Auckland-based carrier pledged to take reasonable measures to mitigate the impact of the workers’ strike, an Air New Zealand flight arriving at Taipei from Auckland on Thursday and another flight departing from Taipei for Auckland on Saturday would have to
MOTIVES QUESTIONED The PLA considers Xi’s policies toward Taiwan to be driven by personal considerations rather than military assessment, the Epoch Times reports Chinese President Xi Jinping’s (習近平) latest purge of the Chinese People’s Liberation Army (PLA) leadership might have been prompted by the military’s opposition to plans of invading Taiwan, the Epoch Times said. The Chinese military opposes waging war against Taiwan by a large consensus, putting it at odds with Xi’s vision, the Falun Gong-affiliated daily said in a report on Thursday, citing anonymous sources with insight into the PLA’s inner workings. The opposition is not the opinion of a few generals, but a widely shared view among the PLA cadre, the Epoch Times cited them as saying. “Chinese forces know full well that
RSS