Taiwan’s new investment in China fell 10.4% in the first quarter.

The newest indication of how escalating tensions between Washington and Beijing are altering global supply chains is the fact that Taiwanese businesses are withdrawing from China while boosting their investment abroad.

Taiwan favors the US and Southeast Asia.

Taiwanese businesses, historically among the biggest investors in China, have been decreasing fresh capital investment in the second-largest economy in the world for the past ten years.

After former US President Donald Trump started pressuring American businesses to break away from China, the downturn quickened. The Joe Biden administration mostly upheld this position.

According to data issued by the Taiwan Investment Commission, new investment by Taiwanese companies in China decreased 10.4% year over year in the first quarter of 2023 to $758 million, following a roughly 14% reduction in such investment the previous year.

The slowdown in Chinese investment stands in contrast to the brisk expansion of Taiwanese investment abroad, which increased 240% to $6.9 billion in the first quarter, half of which came from the US.

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