(Bloomberg) — Taiwanese businesses boosted investment into China this year, despite Taipei’s push to reduce economic reliance on its giant neighbor amid a U.S.-China trade war and a growing military threat from Beijing.
Total approved investment from Taiwan to China rose to $4.7 billion in the first 10 months of this year, an increase of 47% over the same period in 2019, the Ministry of Economic Affairs said in a report Friday. Excluding mainland China, outbound investment climbed 19% to $7 billion in the period.
With most major economies hit hard by the global coronavirus pandemic, China is retaining its appeal for many Taiwanese businesses, even as President Tsai Ing-wen’s government offers incentives to bring investment back home. Some businesses have relocated their operations back across the strait, but China still remains Taiwan’s top trading partner.
Angela Hsieh, a regional economist for Barclays Plc in Singapore, cautioned against reading too much into the surge this year, pointing to the low level of investment and a significant slowdown since 2018.
“I personally don’t think we should overly interpret this 47% jump because the amount of investment was extremely low, as investment to China has been slowing sharply since 2018,” she said, citing a more than 50% plunge in investment in 2019 compared to the previous year.
Hainan Allure
Still, China’s success in controlling the pandemic and its rapid economic recovery have made it a drawcard for investment, not just from Taiwan. A survey published Friday by the American Chamber of Commerce in Shanghai shows U.S. businesses turning upbeat on China after the election of Joe Biden, with the majority planning no change or to increase their investment there.
Read More: U.S. Firms Turn Upbeat on China After Biden Win, AmCham Says
Taiwanese-invested facilities involved in tech and automotive supply chains centered around the Yangtze River Delta have shifted production back across the strait. Other firms are beginning to look to parts of China such as Guangdong and Sichuan.
The island province of Hainan, which Beijing is grooming to be its newest free trade area as part of its economic response to Covid-19, is wooing Taiwanese investment. Taiwan is the second-biggest investor in Hainan in terms of number of registered businesses, Taiwan-based United Daily News reported earlier this month.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
