Taiwan-China Investments Plunge to Decades Low as Firms Navigate Geopolitical Tensions
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Taiwanese investments in mainland China fell to a 22-year low of $3.04 billion in 2023 due to political friction and shifts in global supply chains.
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Taiwanese companies are increasingly investing in US-allied countries to avoid US tariffs and restrictions on selling sensitive technology to China.
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Mainland China's investment in Taiwan also hit a record low of $29.7 million in 2023, down from a 2013 peak of $349.5 million.
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Some Taiwanese companies are trying to balance operations in both mainland China and US-allied countries to navigate geopolitical tensions.
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Political pressure from the US to "decouple" from China and fears of getting caught in a China-Taiwan conflict are driving the investment shifts.