The escalating tit-for-tat tariff war between the world's two largest economies has prompted Taiwanese firms with operations in China to return home for investments while also sharply reducing their investments in China.
Government statistics show that a total of 123 such Taiwanese enterprises have been approved to make aggregate investments of NT$568.2 billion (US$18.12 billion) in Taiwan so far this year. Another 30 applications are still pending approval, with most of them submitted after the Trump administration first threatened in early August to impose 10% on US$300 billion worht of Chinese imports.
Taiwan makers of electronics parts and components have also drastically cut their investments in China. Government figures indicate that China-bound investments made by such makers in the first seven months of 2019 came to only US$200 million, plunging 86.6% on year.
Over 1,000 electronics companies from Taiwan operate in China, but in August only Siliconware Precision Industries (SPIL) applied to make additional investment of US$45 million in constructing LCD modules and micro camera module assembly operations in China.
The US has since September 1 imposed 15% on US$125 billion worth of China-sourced products including smartwatches and tablets and will enforce the same levies on another US$175 billion worth of Chinese imports including smartphones and notebooks on December 15, as part of its retaliation against China slapping 5-10% additional tariffs on US goods also starting September 1.
Article translated by Willis Ke
