Taiwanese companies hit by US-China trade war lured back home by Taipei
- ‘Invest Taiwan’ offers low-cost loans, help finding workers and even rent-free accommodation for firms struggling to make a profit on the Chinese mainland
- Since February, 66 firms have benefited from the programme and committed to invest US$10.5 billion in the self-ruled island
One of Taiwan’s biggest paper manufacturers, which for the past 22 years has done most of its business on the Chinese mainland, is planning to shift the bulk of its operations back home as the trade war between the world’s two largest economies bites into its profits.
Long Chen Paper Co, which produces industrial paper, paperboard and corrugated container boxes, said it had been considering a move for the past couple of years since Beijing introduced restrictions on imports of waste paper, which it uses in its manufacturing process.
That legislation saw its costs soar and the tariff dispute between China and the United States has only made matters worse.
While rising costs might be reason enough to consider relocating, a new financial scheme launched by the Taiwanese government has sweetened the pill still further.
“Invest Taiwan” was introduced by Taipei to lure companies back from the Chinese mainland, and while it is mostly aimed at companies in hi-tech sectors, Long Chen’s scale and profile makes its participation something of a coup for the government.