Taiwan firms’ ‘crisis of confidence’ in China’s business environment started before Pelosi, survey finds
- Most Taiwanese companies doing business in mainland China have moved or planned to move some manufacturing or sourcing elsewhere, according to a US think tank poll
- Survey reflects Taiwanese business executives’ views on mainland China, and ‘military conflict’ was a leading concern even before military drills
More than a quarter of Taiwanese companies with business in mainland China have already relocated some of their production or sourcing elsewhere, and a further third were considering doing so, according to findings by a US-based think tank amid growing tensions across the strait.
Only 31.1 per cent of Taiwanese companies said they had no plans to move any manufacturing or sourcing away from the mainland, in a survey conducted by the Centre for Strategic and International Studies (CSIS) during the week leading up to US House Speak Nancy Pelosi’s visit to the self-ruled island.
The just-released results indicated that Southeast Asia was the most preferred destination among Taiwanese firms that have moved or plan to do so, with 63.1 per cent favouring the region.
A total of 51.3 per cent of respondents preferred moving some of their business back to Taiwan, while 19.5 per cent pointed to northeast Asia, and 10.3 per cent selected South or Central Asia, or about the same percentage as those favouring North America.
Taiwanese companies are highly concerned about their potential over-dependence on the Chinese economy, and the possibility of a military conflict
The survey aimed to address “gaps” in understanding the views that Taiwanese business executives have in regard to mainland China, according to its author, Scott Kennedy, who is a senior adviser and trustee chair in Chinese business and economics with CSIS.
He added that the results reflect “a crisis of confidence” in China’s business environment among Taiwanese and multinational businesses alike.
“The economies on the two sides of the Taiwan Strait are highly interdependent and are likely to remain so. And companies that reported moving were only saying they were moving a portion of their production and sourcing, not all of it,” Kennedy said.