The trade friction between the U.S. and China is causing many Taiwanese companies in China to move all or part of their operations back to Taiwan – and the Taiwan government is doing its utmost to mobilize resources to provide them with necessary assistance.
That was the key message in Economics Minister Shen Jong-Chin’s presentation to AmCham Taipei members at a Chamber luncheon meeting in the ballroom of the Regent Taipei on August 20. Among the Minister’s key points:
- The current situation presents a promising opportunity for Taiwan. Already the government has approved 111 investment cases from Taishang (the term for Taiwanese companies operating on the mainland) and more are coming. The government anticipates that more than 90,000 jobs will be created in Taiwan.
- The Ministry of Economic Affairs has set up a one-stop service center under its InvesTaiwan office to ensure that interested companies receive rapid and efficient service. The government is seeking to help companies solve any problems arising from the “five shortages” of land, power, water, labor, and talent.
- Currently land is not a big obstacle, as many of the returning companies had kept additional production facilities in Taiwan when they invested on the mainland. But it could become more of a concern if the number of returning companies rises considerably. The government is therefore preparing more industrial zones where land or factory buildings will be available on a rental basis.
- Working through local banks, the government is also making loans available to companies at preferential rates to encourage their return or expansion in Taiwan.
- The major sectors being affected are industrial clusters for notebook computers and other ICT products, bicycles, and auto parts. The domestic machinery industry is also receiving increased orders as a result of this trend.
- Some of the Taishang departing China are choosing to relocate to Southeast Asian countries or India. MOEA is also using its contacts and experience to help companies moving to those areas.
Before the speech, Minister Shen also participated in a half-hour meeting to exchange ideas with representatives from several of AmCham’s industrial groups, including the Energy, Technology, and Infrastructure Committees, and the Digital Economy Taskforce.