TAIPEI (Taiwan News) – The Hong Kong version of Bloomberg Businessweek indicates with this week’s magazine cover, that the company expects for Taiwan to become a major beneficiary of the trade conflict between the U.S. and China.
The front of the magazine resembles a package, with a label reading “This product comes from Taiwan” that is bound for the U.S.A. The cover story outlines why Taiwan and U.S. markets can likely look forward to a resurgence of the “Made in Taiwan” label in a big way.
Taiwan, as a separate country, will not be affected by most of the economic measures targeting China. The only Taiwanese companies to suffer will be those who continue to manufacture their products in China.
Across the Strait however, Taiwan’s lucrative potential as a manufacturing base is looking more attractive by the day for foreign investors as well as Taiwanese corporations considering moving operations back home.
The Bloomberg article discusses Delta Electronics and Quanta Computers as examples of businesses that are retreating from the Chinese market.
Delta Electronics is planning to invest NT$13.2 billion (US$426 million) into Taiwan over the next three years, and plans to employ as many as 7,000 skilled workers. Last year, Quanta Computers invested an impressive NT$42.8 billion into Taoyuan’s Hua Ya Technology Park (華亞科技園區) to build a state of the art manufacturing plant making computer servers and related equipment.
In addition to Taiwanese businesses, the article also cites a statement from the Hong Kong Small and Medium Enterprises Association which indicates many private firms in Hong Kong are also considering new investment in Taiwan because of changes being anticipated in the global supply chain.
Taiwan has been making the most of the U.S.-China trade war by successfully bringing back 40 Taiwanese companies, as of late April, and is on a pace to quickly surpass its year-end a goal of 50 firms and NT$250 billion (US$8 billion).
Source Taiwan News
https://reurl.cc/4Gex3
