As part of Taiwan's response to the trade conflict between the U.S. and China, the Executive Yuan began promoting three major investment programs in January 2019 to meet the needs of returning overseas Taiwanese companies and extend assistance to more businesses. The three initiatives—a program to bring back investments from overseas Taiwanese businesses, a program to help domestic corporations with no history of business activity in China, and a plan to accelerate investment by small and medium-sized enterprises (SMEs)—are expected over three years to attract NT$1.35 trillion (US$44.9 billion) in investment, while generating NT$3.21 trillion (US$106.7 billion) in output value and creating 118,000 jobs in Taiwan.
To achieve these goals, all three initiatives offer customized, single-window service to accommodate quality companies with land acquisition, access to water and electricity, and taxation issues. The government also pays banks service fees for providing companies with necessary business capital, which in turn encourages the companies to invest in Taiwan, upgrade and transform more quickly, and embrace innovative and intelligent practices. In doing so, the government will create a better business investment environment that will drive growth throughout Taiwan's entire economy.
■ Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan
◆Targets: This program is aimed at Taiwanese companies that have been operating in China for at least two years and have been hit by the U.S.-China trade war, and whose manufacturing production lines require smart components or systems.
◆Eligibility: A company meeting any of the following conditions qualifies for assistance: The enterprise is engaged in at least one of the "five plus two" innovative industries, is a manufacturer of high-value-added products and key components, occupies an important position in the global supply chain, sells in international markets under its own brand, or fulfills a major national industrial policy.
■ Program to help domestic corporations with no history of business activity in China
◆Targets: This program assists non-SMEs that have not qualified for the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan.
◆Eligibility: For companies in the manufacturing sector, qualifying businesses must meet the same eligibility requirements as the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan, and have production lines that require smart components or systems. In the services sector, qualifying businesses must provide services that require intelligent processes, and must have investments supporting a major national industrial policy.
■ Plan to accelerate investment by SMEs
◆Targets: This initiative targets SMEs not covered under the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan.
◆Eligibility: Companies must meet the same eligibility requirements as for the program to help domestic corporations with no history of business activity in China.