An expansion of mainland China operations among Taiwanese firms is ‘not on their radar’, while the need to maintain a presence in the world’s biggest consumer market is putting them in a tight spot.
Taiwanese food like fruit and tea is prized by consumers in the mainland for its ‘fragrance’, subtlety and freshness. But finding it is going to be increasingly difficult after Beijing banned a range of imports earlier this month.
The Taiwanese government and private sector are looking for ways to diversify rare earth mineral imports from China, but it will be an uphill battle because the mainland has the world’s biggest reserves and advanced mining systems.
Multinationals in Taiwan are not expected to leave in the short-term, but the military drills by the People’s Liberation Army have forced many to reassess vulnerabilities, analysts say.