A new survey by the Center for Strategic and International Studies (CSIS), a U.S. think tank, shows that Taiwanese companies in China are increasingly relocating to Southeast Asia, underscoring the importance of the New Southbound Policy.

The picture shows Ho Chi Minh City, Vietnam.

(Photo from this newspaper)

[Financial Channel/Comprehensive Report] Nikkei Asia News reported on Saturday (8th) that according to a new survey by the Center for Strategic and International Studies (CSIS), a US think tank, more and more Taiwanese companies in China are moving to Southeast Asia. , a trend that reflects the potential importance of President Tsai Ing-wen's flagship foreign policy.

63.1% will go to Southeast Asia for more than half of the business to return to Taiwan

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The survey of more than 500 Taiwanese business executives, released this week, found that more than a quarter (25.7%) of companies doing business in China have moved some production or sourcing outside of China, while another third One is considering doing so.

Of the companies that relocated, the vast majority (63.1%) will head to Southeast Asia, but more than half will relocate some of their operations back to Taiwan.

The survey also noted that Taiwanese companies are highly concerned about their over-reliance on the Chinese economy and the risk of military conflict.

More than three-quarters (76.3%) said Taiwan needs to reduce its economic dependence on China.

The Nikkei pointed out that in 2016, President Tsai Ing-wen launched the flagship foreign policy policy in Asia, called the New Southbound Policy, which refers to Taiwan extending a helping hand to its neighbors and partners in the south, and shifting from the Chinese market to economic and trade diversification. Taiwan's people-to-people, trade, and investment relations with Southeast and South Asian countries, as well as other regions.

The report said that maintaining Taiwan's technological advantages through regional and bilateral arrangements with the United States, expanding trade and investment ties, and maintaining Taiwan's technological advantages through increased spending on research and development, and expanded restrictions on technology transfer to China have all received significant business support.

Several Taiwanese tech executives, who did not want to be named, told Nikkei Asia that, in fact, if a war broke out between China and Taiwan, there was little they could do, because even with multiple factories set up overseas, most of their members mainly focus on R&D and development. The management team is all in Taiwan.

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