Growing tensions between China and the United States have pushed Taiwan to diversify and expand its investments in other countries. That was the word from DBS Bank, a multinational banking corporation, after the United States shot down a suspected Chinese surveillance balloon on Saturday.
DBS Bank says Taiwan has been spreading its enterprises beyond China, especially over the last five years. This includes building electronics factories abroad and investing in countries like Vietnam, India, Singapore, and the United States.
The bank estimates that Taiwan will pool over one third of its investments in Southeast Asian countries over the next few years, replacing China’s dominant position. It adds that Southeast Asian countries are increasingly attractive to Taiwan due to their workforce, economic stability, and trade convenience.
But DBS senior economist Ma Tie-ying (馬鐵英) says this does not mean Taiwan will suddenly pull its businesses out of the Chinese market. She says Taiwan will keep existing supply chains and production sites in China, while considering other countries for new export investments.