TAIPEI (TVBS News) — As tensions between the U.S., China, and Taiwan continue to rise, Ambassador Kurt Tong of The Asia Group emphasized the importance of mutual benefits arising from two-way trade between the U.S. and Taiwan. While the political landscape often steals the headlines, Tong argues there is much to gain from cross-border economic activity.
"This is a common concern that one hears when people view headlines about businesses investing overseas in capacity that theoretically could also be invested in their location," said Tong. He stressed that economic history shows cross-border investment can be mutually beneficial, creating more investment and trade in both directions. "An investment in the United States in manufacturing is likely to generate exports from Taiwan to support that investment," he added.
Tong elaborated that these investments can lead to long-term, profitable business relationships, boosting economic activity between nations. "That needs to be explained to people so that they understand that the creation of these long-term relationships is by nature of mutual benefit," he noted.
Moreover, Tong argued that the macroeconomic environments in Taiwan and the U.S. are mediocre, but he expects an uptick in activity between the two nations. For Taiwan to capitalize on this, he said the country needs to continuously improve its business climate to attract the kind of attention it desires, "both through policy and through outreach."
He urged Taiwan to prepare for a future where "lots of private equity visiting, venture capitalists, Wall Street-type people" would be interested in the nation's potential. "And that's going to require, I think, some more work by Taiwan to really make itself competitive as a business climate," he concluded.
In comparison to other East Asian competitors, Tong sees a promising trade outlook between the United States and Taiwan. By focusing on bilateral investment, both nations can achieve significant mutual benefits.