Coronavirus: most US firms in Taiwan feeling pinch from Covid-19 despite reputation as economic ‘bright spot’

More than three quarters of US firms in Taiwan say they are feeling the impact of the coronavirus, says the American Chamber of Commerce in Taipei

Nearly 90 per cent expect further disruptions in first half of 2020, but most American businesses are optimistic about Taiwan’s economy

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Taiwan has weathered the economic impact of the coronavirus relatively well compared to other countries, AmCham Taipei says. Photo: AP

Published: 2:30pm, 16 Apr 2020Updated: 2:30pm, 16 Apr 2020

Taiwan’s export-oriented economy is likely to be squeezed further by supply chain disruptions caused by the coronavirus outbreak, according to the American Chamber of Commerce in Taipei, despite its reputation as a “bright spot” in a sea of economic uncertainty.

More than three quarters of US firms operating on the island say they are feeling the impact of the virus, with about 30 per cent experiencing it to a large extent, according to an AmCham Taipei survey released on Wednesday.

All but 12.7 per cent of respondents said they expected the Covid-19 pandemic to affect their business in the first half of 2020. Some 66 per cent of companies said they had already seen a decline in demand.

The survey, which was conducted between April 6 and 10, covered one-third of the chamber’s 404 voting members.

“Given the internationalness of the export-oriented economy, I think there will be some impact,” AmCham Taipei chairman C.W. Chin told a video news conference. “Taiwan is a player in the global supply chain.”