Taiwan keen on luring businesses back from mainland China

Government will dangle incentives, but return has its complications

Nikkei Asian Review
Date: September 15, 2018
By: Kensaku Ihra, Nikkei staff writer

President Tsai Ing-wen visits an electric-bike plant in Taoyuan, northern Taiwan, in May.   © Central News Agency

TAIPEI — Taiwan is rolling out the welcome mat for its companies operating on the Chinese mainland, hoping that they will come back now that the Sino-American trade spat has made doing so more appealing.

President Tsai Ing-wen’s administration is considering incentives like tax breaks and assistance securing land for factories, and it plans to submit a bill incorporating such measures to the legislative branch as early as this month, Nikkei learned from a top official.

The administration has been aiming to reduce Taiwan’s dependence on the mainland, and the growing trade friction between China and the U.S. provides added impetus. But it will need to address a number of issues, including the stable supply of electric power, to see this plan through.

According to the official, the government will gear the support measures toward Taiwanese manufacturers that are already operating in China and are considering moving factories to Taiwan.    [FULL  STORY]

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