While the US continues to struggle bringing overseas-based jobs stateside, Taiwan has had no such issues thanks to the Invest Taiwan program. According to the Ministry of Economic Affairs (MOEA), investment from overseas businesses, local manufacturers and SMEs has reached almost TWD 1 trillion (USD 33.5 billion) since the launch of the economic program in July 2019.
Invest Taiwan was the government’s response to the United States-China trade war. The three-pronged investment strategy was launched to create jobs in Taiwan and increase investment in the country. Businesses that participate in the program are given subsidies for interest payments on bank loans among other benefits.
A total of 156 Taiwanese companies invested in the island last year with MOEA stating another 57 firms are in the process of joining Invest Taiwan. Taiwan News reported Taiwanese food manufacturer I-Mei Foods, hydraulic cartridge valve producer Winner Hydraulics and industrial panel maker Mildex joined the program last week.
Thanks to Invest Taiwan, the country has been one of the biggest benefactors of the United States-China trade war and also avoided significant damage during the ongoing COVID-19 pandemic. Additionally, Taiwan continues to add jobs as companies relocate from China or cancel plans to shift operations to the mainland.
“This trend of course will raise the GDP and employ people – that’s beyond a doubt,” Ho Kun-sung, Chief Operating Officer at Invest Taiwan, told the South China Morning Post. “The returnees won’t be a huge per cent of GDP, but there’s still an effect of moving it forward and creating jobs.”
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Invest Taiwan allows firms to return home
Companies returning to Taiwan come from a wide range of industries. There are traditional firms like Giant Manufacturing, one of the world’s largest bicycle companies. The manufacturer was one of the first to shift operations back to the country from China in order to avoid tariffs.
I-Mei has already announced it will build a TWD 3.2 billion (USD 107 million) automated production line at a Taoyuan facility that will produce biomedicines and macrobiotic food products. The project is expected to add 220 jobs once operational.
According to Pan Chien-kuang, Market Intelligence & Consulting Institute Senior Industry Analyst, Invest Taiwan could see the country reestablish its status as a technology hardware hub as well.
“Technology hardware firms are particularly keen to leave China because US tariffs of 15 percent to 25 percent would eat up their profit margins,” Pan noted. “Clients in the US, Japan and other advanced countries are also worried about the security of equipment made in China.”
