With China a mutual concern, investment accelerates between Australia and Taiwan

Taiwanese investors received approval to park US$411 million in Australia between January and October, dwarfing the US$15.15 million total in 2021

Australian investments approved in Taiwan climbed to US$114 million in the first 10 months of the year, up from US$68.69 million last year

3-MIN READ3-MIN

The Taipei 101 skyscraper in in Taiwan’s capital. Photo: EPA-EFE

Published: 8:30am, 30 Nov 2022Updated: 9:14am, 30 Nov 2022

Investment between Australia and Taiwan has grown in both directions this year as the two sides try to diversify away from mainland China and eye each other’s energy sectors.

Taiwanese investors received approval to park US$411 million in Australia between January and October, dwarfing the US$15.15 million total in 2021 and US$14.17 million in 2020, according to Taiwan’s Investment Commission.

Australian investments in Taiwan climbed to US$114 million in the first 10 months of the year, up from US$68.69 million in 2021 and US$79.83 million in 2020, the commission said.

Analysts say China’s cooling economy plus a chill in cross-Strait ties are slowing the flow of Taiwanese money into the mainland and diverting it to Southeast Asia, India or further afield.

China’s zero-Covid policy has led to a significant reduction in economic and trade activities

Darson Chiu

Mainland China is still Taiwan’s top investment destination, accounting for US$4.16 billion of the island’s US$11.56 billion in approved outbound investment in the first 10 months.

But overall, Taiwanese capital flows into the mainland are shrinking, falling 3.2 per cent in the year to October compared to the same period in 2021.

Beijing’s draconian coronavirus controls have hurt export supply chains and lowered expectations for China’s growth this year. Many of the 4,200 Taiwanese companies in the mainland make goods for export.