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Growing Distrust of China Brings $38 Billion Taiwan Windfall

Growing Distrust of China Brings $38 Billion Taiwan Windfall

Sep 13, 2020 1 min, 9 secs

Taiwan sits squarely in the middle of the worsening dispute between Beijing and Washington, with many of its companies operating factories in China manufacturing for American companies.

Those tensions are pushing Taiwanese companies to relocate some production back home and also redirect money to factories on their side of the strait.

Supply chains for electric vehicle manufacturers including Tesla Inc., which has a factory in Shanghai, are also moving to set up in Taiwan, she told members of the American Chamber of Commerce and their Taiwanese counterparts, touting the fruits of the government’s policy to bring manufacturing and investment back.

However, rising distrust of China is leading American companies to move their supply chains elsewhere, with Wang saying that the main driver for companies coming back to Taiwan is intellectual property concerns from U.S.

“It’s upstream companies that determine the direction of Taiwanese investment,” said Roy Chun Lee, deputy executive director of the Taiwan WTO & RTA Center at the Chung-Hua Institution for Economic Research.

One example is Wistron NeWeb Corp., which announced a new NT$2.7 billion investment in a factory in Taiwan in June, after its customers requested it diversify where it manufactures.

Another recent change is that it’s not just American end-clients pushing companies back home to Taiwan’s skilled labor pool and highly developed supply network

Summarized by 365NEWSX ROBOTS

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