Efforts put in by Taiwan to push its firms towards making an investment in advanced manufacturing at home after years and years of focusing on China is helping offset the impacts of the trade war between the United States and China, the government told.
Firms based in Taiwan have pledged to make an investment of nearly NT 1.2 trillion dollars which is equivalent to 39 billion dollars at home after the commencement of a program by the government at the beginning of the year to capture the attention of investors from local firms with facilities in China.
Bloomberg News was told by Minister without Portfolio Kung Ming-Hsin last Thursday that they will be seeing an additional yearly investment of NT 300 to NT 400 billion dollars which would take a year to two to three years and the credit would go to the Taiwanese firm which decides to return. He added that we assertive that they will be seeing a firm growth momentum for the coming 3-4 years.
The plan of attracting firms to make an investment back home is either one of the two competing economic visions for Taiwan leaders. One of the candidates has pinned the economic future of Taiwan on developing industries such as defense domestically, advanced manufacturing, and clean energy whereas her opponent supports removing further barriers of continuing business with China.
Taiwanese firms like Hon Hai Precision Industry, which develop gadgets for a number of the leading global electronics brands, began doing investment in China in the late 1980s. However, faced with continuing trade tensions and tariffs between two greatest overseas markets of Taiwan, the leaders of those firms are more and more shifting their production to Taiwan and Southeast Asia to protect their wafer-thin margins.