Taiwan Companies Support More China Export Controls, Report Says
Taiwanese companies are “highly concerned” about a potential overdependence on China’s economy and the possibility of a U.S.-China military conflict,” the Center for Strategic & International Studies said in a new report this week. Because of this, CSIS said, “there is significant support for expanding trade and investment ties” with the U.S. and for maintaining its technological edge through domestic investments and export controls.
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More than half of Taiwanese companies that participated in a CSIS survey believe the country should expand export restrictions on advanced technologies destined to China, the report said. While 67% of the 525 businesses that responded to the survey said more export controls are needed, 21% said “rigorous” export controls on dual-use technologies is the “single most important measure” to protect Taiwan’s technology advantages. Thirty-five percent said expanding domestic research and development is the most important step to sustain Taiwan's technology sector.
But perhaps most notably, CSIS said Taiwanese companies “appear to be moving their businesses far more often than in the past.” Many are moving their operations out of China, the report said, while a smaller percentage are moving out of Taiwan to other places, including to mainland China. Many of the companies that supported increased export controls on China had already moved from the mainland, the report said, and believe Southeast Asia and India are “sufficient substitutes for China.”