Chinese production costs have been rising drastically over the last years.
As the ongoing US-China trade war continues to rage, the large number of Taiwanese companies that have been operating on mainland China seem to be considering moving out of the mainland to lucrative locations, particularly Vietnam, Indonesia and Myanmar, though other locations such as Malaysia and Thailand, despite their higher production and labor costs,
“It’s the character of the modern supply chains which are, essentially, global in nature and extend beyond national borders. Many Taiwanese companies have maintained manufacturing operations in China because of its lower production and labor costs. However, these costs have dramatically risen in recent years.
Relocation to Taiwan is evaluated as alternative for China
The US-China trade tensions have added to the worries of the Taiwanese companies which are looking for alternative manufacturing sites in the region,” explained Walter Yeh, the President of the Taiwan Trade Development Council (TAITRA), in an interview with the American Journal of Transportation in Taipei.
While many Taiwanese companies in China are mulling migration from China and looking to relocate their operations to a country in Southeast Asia, there are also some who are thinking of returning to Taiwan.
According to TAITRA, there are some 80,000 Taiwanese companies, including many small-sized companies, operating in mainland China. Many of these companies manufacture machinery products, electronics, automation, etc., for export to the US and other countries. also being considered.