Taiwan’s foreign investment surges with ‘no short-term issues’, but China clouds outlook
- Approved foreign investment into Taiwan grew by 152 per cent to US$11.14 billion over the first three quarters of the year
- ‘There are no short-term issues’, analysts said, but Nancy Pelosi’s earlier visit and Xi Jinping’s latest call for reunification cloud the long-term outlook
Foreign investment into Taiwan soared in the first nine months of the year as Beijing’s zero-Covid policy “stagnated” mainland China’s economic activity, but the outlook following US House Speaker Nancy Pelosi’s visit and Xi Jinping’s latest call for reunification remains unclear, analysts said.
Approved foreign investment into Taiwan grew by 152 per cent over the first three quarters of the year despite the island’s heightened tensions with mainland China.
Government permits for direct investment from overseas reached US$11.14 billion between January and September compared to US$4.42 billion during the same period last year, according to the Investment Commission of Taiwan’s Ministry of Economic Affairs.
“They will look at the stability of Taiwan, and there are no short-term issues,” said Kent Chong, a partner with professional services firm PwC in Taipei.
Foreign-based firms like Taiwan for its talent, wealth of intellectual property and access to other parts of Asia, added Chong.