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German companies in Taiwan fear tensions with Beijing

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German companies in Taiwan fear tensions with Beijing

Despite fears, German companies are “cautiously optimistic” about the future. picture alliance / dpa | David Chang

According to a survey by the AHK, German companies see their business in Taiwan being affected by tensions with Beijing.

Over a third of the companies surveyed reported supply chain disruptions due to the disrupted climate between China and Taiwan.

Despite the challenges, almost half of the companies surveyed want to continue investing in Taiwan in the next two years.

According to a survey by the German Chamber of Commerce Abroad (AHK) in Taiwan, German companies see their business increasingly being affected by the tensions between Taipei and Beijing. The results of the survey were presented in Taipei on Thursday. More than a third of the companies surveyed said there had been disruptions in the supply chain due to the disrupted climate between China and Taiwan.

Although there is an independent government in Taipei, the Communist Party in Beijing considers Taiwan to be part of China, which regularly leads to political tensions.

The AHK surveyed 251 companies between November and January, of which 39 percent responded. The survey showed that German companies want to hold on to Taiwan despite the challenges. The prospects for sales, profits and productivity mean that many companies are “cautiously optimistic” about the future. Almost half of those surveyed want to continue investing in Taiwan in the next two years.

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German companies in Taiwan are facing “pressing challenges”.

The survey results also show that the Taiwanese government should do more to ensure energy security, improve language skills and address labor shortages. According to a report from the German business office in Taipei, headed by Axel Limberg, the German side is interested in dialogue with the Taiwanese authorities to address these “pressing challenges.”

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Taiwan is a major manufacturer of high-tech products such as chips for electronic devices and smartphones. According to the AHK, the trade volume between Germany and Taiwan in 2023 was 22 billion US dollars (20.3 billion euros), slightly below the value in 2022. With direct investments amounting to 1.5 billion US dollars (1.38 euros) last year, Germany is the second largest foreign investor in Taiwan.

Around a third of German companies in Taiwan are active in mechanical and plant engineering, and around 15 percent in the electrical and IT sectors. More than half of the companies surveyed see Taiwan as an important hub for sales to other Asian markets.

AA/dpa

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