More US firms in Taiwan say they’re seeing ‘significant disruption’ due to rising tension with China

Taipei
CNN
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The number of companies in Taiwan who say they are experiencing business disruption due to rising tensions between Taipei and Beijing has nearly doubled, according to the report. American Chamber of Commerce in Taiwan.

An annual survey, polling 214 member companies in Taiwan, found that the number of companies reporting “significant disruptions” increased from 17% to 33% over the period. from August to December 2022, room said Tuesday.

Last August, then-US Speaker of the House Nancy Pelosi visited Taipei, and China stepped up military drills in response. China’s ruling Communist Party has increasingly strengthened its territorial claims to democratic Taiwan, a self-governing island, though it has never controlled it.

The department explained that the business disruption was due to increased concern from global headquarters, increased transportation, insurance or financial costs, as well as employee anxiety.

Nearly half of the companies it surveyed said they were developing contingency plans to deal with increased stress.

Just last month, China sent 28 fighter planes along the median line of the Taiwan Strait, as Beijing conducts its first large-scale military exercise around the island this year, according to Taiwan’s defense ministry.

“For companies in Taiwan, cross-strait relations are very important,” Kristie Hsu, director of Taiwan’s Chung-Hua Economic Research Institute, told CNN.

She added that concerns include the possibility of supply chain disruptions or unilateral measures that could undermine trade.

The Chamber reported that two-thirds of members surveyed said political uncertainty was the biggest factor preventing them from investing further in Taiwan.

“It’s a volatile environment, and we expect companies here to look ahead cautiously,” AmCham Taiwan President Andrew Wylegala told reporters. reporters, adding that none of the group’s members left Taiwan due to concerns about rising geopolitical tensions.

To reduce the possibility of future disruptions, 28% of the businesses surveyed by the chamber said they were reconfiguring their supply chains, while 18% said they were expanding to other locations outside of Taiwan. .

–CNN’s Brad Lendon contributed to this report