In a statement that will definitely make the Chinese officials angry, the Taiwan Trade official has said that India is seen as an investment destination. The official trading body for Taiwan, TAITRA, has said that Taiwanese investors will not go to China even if the current trade war between US and China ends.
TAITRA Vice Chairman Liu Shih-Chung said that “For the next 20, 30 years, Taiwanese businesses should focus on setting up shop in India,” and he also added that Taiwanese businesses should consider India as a good destination for investment.
TAITRA Vice-Chairman also estimated that more than US$10 billion of investment could come to India in the coming years even if the trade war between the US and China gets solved. Liu added that “Rising wages and stricter environmental regulation in China were factors adding to the U.S. tariffs against Chinese products which moved Taiwanese investors to look for new destinations” along with naming “Southeast Asia and India” as their favourite choices.
TAITRA official also explained that the Taiwanese government is “aimed at expanding ties to Southeast and South Asian nations, including India, in a wide range of fields, from trade and investment to tourism and education.” with its new Southbound policy
Liu added that “Electric vehicles, artificial intelligence (AI) and recyclable energy sources were the main areas Taiwanese investors would be looking for in India”. On the question of Taiwanese investors returning to China if the trade war ends, he answered in negative but added that “Taiwanese manufacturers of computers and smartphones might not close down the Chinese factories they have been using for decades, but they might be looking for additional countries, such as India, to add new production units.”