Taipei, The Chung-Hua Institution for Economic Research (CIER), one of the leading think tanks in Taiwan, said Wednesday that more than 50 percent of Taiwanese manufacturers have countermeasures to take on trade tension between the United States and China.
Citing a survey targeting purchasing managers in Taiwan on the impact of the Washington-Beijing trade dispute, CIER said that 54 percent of the polled manufactures said they have either adopted measures or are planning to come up with measures to assuage the impact from the trade war between the two top economies in the world.
About 95.8 percent among those that have policies to deal with the trade dispute said they have or will adjust their operations or change their purchase/supply policies, 68.3 percent said they have or will diversify their export markets and 43 percent of them said they have or will change their investments and relocate their plants or service offices.
In the survey, 28.5 percent of the respondents said their orders fell in the first half of 2018, but 44.8 percent of them said their orders dropped in the second half of this year, indicating that the impact of the trade friction was increasing.
The survey echoed a forecast released by the think tank that same day that said Taiwan's economy will grow 2.18 percent in 2019, shy of an expected 2.62 percent increase for 2018, showing that the global economy faces many risks and uncertainties in 2019, with the U.S.-China trade war continuing to serve as a factor that could determine economic outlook.
The survey found that 76 percent of the respondents agreed that the Washing-Beijing trade tension has been their top concern for their operations, ahead of currency value fluctuations (56.3 percent) and raw material prices (51.0 percent).
According to CIER, 61.6 percent of the manufacturers in the survey are Taiwanese investors operating in China and 66 percent of the investors in China said they have or will come up with measures to take on the thorny trade issues, CIER said.
About 45.8 percent of those Taiwanese investors operating in China who have or will come up with measures to tackle the impact from the trade disputes, CIER said, they are considering relocating their investments in China.
As for investment relocation, CIER said, the top choice of venue for these Taiwanese investors will be in Association of Southeast Asian Nations countries, ahead of Taiwan and the U.S.
Source: Focus Taiwan News Channel