Taiwan Gloats As U.S. Says Its R&D Capability Lures Investors

The US government's Investment Climate Statements report released late last week observes that Taiwan's advanced R&D capability and government incentives have attracted American and other foreign investment in the country.

Taiwan "is an important market in regional and global trade and investment" and has played "a dominant role" in the global technology supply chain because the export-dependent economy has a highly skilled workforce that contributes to research and development (R&D), the report said, Stacy Hsu and Teng Pei-ju reported for Taiwan’s Central News Agency (CNA).

The report, which was released by the US Department of State, also indicated that the Taiwanese authorities have provided incentives to attract direct foreign investment (FDI) from both foreign companies and Taiwanese firms operating overseas.

Favorable terms provided by Taiwan to boost inward FDI include tax incentives, tariff exemptions, low-interest loans, as well as a reshoring incentive program launched in 2019 to help Taiwanese companies with operations in China invest more in Taiwan, according to the report.

Under such circumstances, the island's finance, wholesale and retail as well as electronics sectors, have been the main targets for overseas investors, the report said.

Meanwhile, the report noted that the US is Taiwan's second-largest source of FDI following the Netherlands. It cited U.S. Department of Commerce data as saying that the total stock of US FDI in Taiwan reached US$17.3 billion in 2019.

WEEKLY FEATURE : PAL READY TO SOAR WITH PANDEMIC