Taiwan Firms Pull Back in China as Investments Elsewhere Surge

  • New Taiwanese investment in China shrank 10.4% in 1Q
  • Companies favor US, SE Asia as geopolitical tensions rise

Taiwanese companies are cutting their exposure to China just as they ramp up investment in other parts of the world in the latest sign of how growing tensions between the US and China are reshaping global supply chains.

New investments in China by Taiwanese companies declined 10.4% year on year in the first quarter of 2023 to $758 million, according to data released by Taiwan’s Investment Commission Thursday. That follows an almost 14% decrease in such investment last year.

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Taiwan Firms Pull Back in China as Investments Elsewhere Surge