Taiwan’s International Business
REPORTER:
Taiwan’s government is trying to help local companies with their international presence. That was the message from officials addressing a forum of business leaders in Taipei today. But even as they encourage companies to diversify abroad, many at home are worried about that strategy.
Welcome Vice President Hsiao!
Taiwan Vice President Bi-khim Hsiao takes the stage, to address a business leaders’ forum, and reassure them in the face of global trade tensions.
The international economic and trade landscape has been volatile in recent years. From geopolitical risks to the tariff challenges we see from the US, across the Pacific. While these changes have had a considerable impact on everyone they also present opportunities for industrial transformation and restructuring.
REPORTER:
It is a message meant to calm a business community on edge, especially those with businesses abroad.
Taiwan depends heavily on its exports, which make up about 70% of its GDP. And there are at least 40,000 Taiwanese companies abroad.
Tensions have climbed since US President Donald Trump began his global tariff plans in April – with a 20% tariff on most Taiwanese goods starting last month.
US tariffs and cross-strait tensions have led many Taiwanese firms to expand beyond their traditional investment destination of China.
The need for risk diversification is increasing
In the past, it was “China plus one” but now we see “China plus one, plus two, plus three.”
Taiwan’s investment in North America reached a new high in 2023 and 2024.
And in 2023 our investment in the EU accounted for almost 20%.
REPORTER:
One example is chip giant TSMC, which recently made the largest direct investment in US history. And while that may help lower tariffs, it's also raising concerns at home.
A recent poll showed that roughly half of Taiwanese people are worried that TSMC, which stands for Taiwan Semiconductor Manufacturing Company, may switch that T to an A, for America, as it continues to expand in the US.
Amid these concerns the Cabinet approved a nearly 17 billion US dollar package that includes more than 1.5 billion to support companies facing US tariffs, to offer business loans, and to promote Taiwan’s products abroad.
Of course, the government also provides solid support for Taiwanese businesses working overseas.
In recent years, the Cabinet has continuously proposed three major investment programs in Taiwan hoping that Taiwanese businesses with global presence will stay in Taiwan and plant deeper roots here.
REPORTER:
Officials say they will continue to communicate with various industries about their needs.
With a trade environment that keeps changing, Taiwan’s government and businesses are adjusting to keep the country competitive and stay afloat.
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