As part of Taiwan's response to the trade conflict between the U.S. and China, the Executive Yuan approved three major investment programs on June 20, 2019 to meet the needs of returning overseas Taiwanese companies and extend assistance to more businesses. The three initiatives—an expanded 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 the next three years to attract NT$1.175 trillion (US$37.8 billion) in investment, while generating NT$3.16 trillion (US$101.8 billion) in industrial output and creating 104,000 jobs in Taiwan.
To achieve these goals, all three initiatives offer customized, single-window service to accommodate quality companies with land acquisition, water and electricity usage, 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. With greater access to capital, domestic businesses will be able to upgrade and transform more quickly, embrace innovative and intelligent practices, and drive the collective growth of industries across all levels of the supply chain.
1. Expanded program to bring back investments from overseas Taiwanese businesses
■ 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 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.
2. Program to help domestic corporations with no history of business activity in China
■ Targets: The second program assists large corporations that have never invested in China.
■ Eligibility: For companies in the manufacturing sector, qualifying businesses must meet the same eligibility requirements as in the first program mentioned above, 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.
3. Plan to accelerate investment by SMEs
■ Targets: This initiative targets SMEs not covered under the first program mentioned above.
■ Eligibility: Companies must meet the same eligibility requirements as for the second program mentioned above.