Despite repeated cautions from China not to travel to Taiwan, China started military exercises when U.S. House Speaker Nancy Pelosi visited the island.
Just days following Pelosi’s visit to Taipei, AmCham Taiwan conducted a survey of its 529 member organisations from August 8 to August 17.
In spite of the recent escalation in tensions between China and Taiwan, the majority of member companies of the American Chambers of Commerce in Taiwan claimed there hasn’t been a significant disruption to commerce.
According to a study, the majority of member companies of the American Chambers of Commerce in Taiwan stated that there hasn’t been a significant disruption to commerce despite the recent escalation of tensions between China and Taiwan.
According to Andrew Wylegala, president of AmCham Taiwan, China began conducting military drills surrounding Taiwan recently, yet 77% of respondents claimed that there was no “appreciable interruption” to their business.
Despite repeated cautions from China not to travel to Taiwan, China started military exercises when U.S. House Speaker Nancy Pelosi visited the island.
Taiwan is a self-governing democracy, but Beijing views the island as a renegade province and a portion of its territory.
However, despite the fact that there hasn’t been a “panic” or a “exodus” of businesses from Taiwan, Wylegala reported that nearly half of its citizens are anticipating “some type of dislocation and disruption” as China continues its military exercises.
According to Wylegala on CNBC’s “Capital Connection,” there has been “no panic in the short term, but an acceptable degree of concern going forward.
Just days following Pelosi’s visit to Taipei, AmCham Taiwan conducted a survey of its 529 member organisations from August 8 to August 17.
17% of respondents to the study stated that their firm has already been disrupted, with a third of them reporting higher shipping or insurance costs as well as supply chain delays.
According to AmCham Taiwan, 46% of the businesses questioned anticipate that from 2022 to 2023, China will boost its military action, which will have an impact on their operations. The remaining respondents either do not think they will be impacted or are unsure.
When asked about the specific spectrum of threats they were concerned about, respondents, according to the business association, mentioned the following: restrictions or barriers on the island’s periphery; travel restrictions; and “sanctions, travel bans, boycotts, and embargoes against Taiwan products and people.
As the United States continues to strengthen its support for the island in light of escalating concerns with China, the two countries on Wednesday agreed to begin discussions on a trade and economic initiative.
The prospect of a free trade agreement, which is more comprehensive and something Taiwan has been promoting, is still unknown.
According to Wylegala, current tensions have strengthened the case for a bilateral trade pact, and Taiwan “has done a tremendous job as a partner of the U.S.
The June announcement of the U.S.-Taiwan Initiative on 21st-Century Trade, according to Wylegala, is not a free trade deal per se,” but it is nevertheless a “stepping stone.
Four years ago, there were no active economic debate channels. We currently have four different agreements in place, with others pending, he continued.
