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.
Eight Chinese naval vessels and 24 military aircraft were detected crossing the median line of the Taiwan Strait between 6am yesterday and 6am today, the Ministry of National Defense said this morning. The aircraft entered Taiwan’s northern, central, southwestern and eastern air defense identification zones, the ministry said. The armed forces responded with mission aircraft, naval vessels and shore-based missile systems to closely monitor the situation, it added. Eight naval vessels, one official ship and 36 aircraft sorties were spotted in total, the ministry said.
The Ministry of Foreign Affairs (MOFA) today said that if South Korea does not reply appropriately to its request to correct Taiwan’s name on its e-Arrival card system before March 31, it would take corresponding measures to alter how South Korea is labeled on the online Taiwan Arrival Card system. South Korea’s e-Arrival card system lists Taiwan as “China (Taiwan)” in the “point of departure” and “next destination” fields. The ministry said that it changed the nationality for South Koreans on Taiwan’s Alien Resident Certificates from “Korea” to “South Korea” on March 1, in a gesture of goodwill and based on the
Taiwanese officials were shown the first of 66 F-16V fighter jets purchased by Taiwan from the United States, the Ministry of National Defense said yesterday, adding the aircraft has completed an initial flight test and is expected to be delivered later this year. A delegation led by Deputy Minister of National Defense Hsu Szu-chien (徐斯儉) visited Lockheed Martin’s F-16 C/D Block 70 (also known as F-16V) assembly line in South Carolina on March 16 to view the aircraft. The jet will undergo a final acceptance flight in the US before being delivered to Taiwan, the
The New Taipei Metro's Sanyin Line and the eastern extension of the Taipei Metro's Tamsui-Xinyi Line (Red Line) are scheduled to begin operations in June, the National Development Council said today. The Red Line, which terminates at Xiangshan Station, would be connected by the 1.4km extension to a new eastern terminal, Guangci/Fengtian Temple Station, while the Sanyin Line would link New Taipei City's Tucheng and Yingge stations via Sanxia District (三峽). The council gave the updates at a council meeting reviewing progress on public construction projects for this year. Taiwan's annual public infrastructure budget would remain at NT$800 billion (US$25.08 billion), with NT$97.3
RSS