Coronavirus, China-US trade war spark surge of Taiwanese investments onshore
- China’s lure as the world’s factory is declining for Taiwanese companies, which are increasingly choosing to make investments at home
- Tax breaks in Taiwan, trade war tariffs and supply chain vulnerabilities exposed by the coronavirus pandemic are making China increasingly unappealing
Taipei-based Bioteque Corporation has a sales office near Shanghai but never considered opening a factory in mainland China.
So when the 29-year-old medical equipment maker was looking to expand production, it told the Taiwan stock exchange in March it would invest NT$1.6 billion (US$53.4 million) in a science technology park an hour from its head office, creating 141 jobs at home.
The company picked the site in Taiwan’s Yilan County because the central government offered a rent break and doubled the normal land-use period to 40 years with the option to renew after that, said Peggy Chung, head of accounting.
“There was no consideration of mainland China because they offer no incentives,” Chung said. “So, if we can invest in Taiwan, of course we make that a priority.”
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