TAIPEI (TVBS News) — Taiwan's investments in New Southbound countries in the first 11 months of 2023 have surpassed investments in Mainland China, as announced by the Ministry of Economic Affairs (MOEA) on Wednesday (Dec. 20).
Investments in New Southbound countries reached US＄5.13 billion, marking a 7.26% year-on-year increase, outpacing investments in mainland China, which stood at US＄2.96 billion.
The trend toward supply chain diversification, accelerated by the U.S.-China trade war and major manufacturers' decentralization strategies, continues to gain momentum. Investments in New Southbound countries now constitute approximately 20% of Taiwan's total overseas investments, while China accounts for around 11.5%.
The ministry reported 2,102 approved cases of overseas-focused investments by Taiwanese and foreign entities from January to November 2023, a decrease of 8.89% compared to last year. The total investment reached about US＄10.8 billion (approximately NT＄323.7 billion), the second-highest in the last 15 years for the same period but still representing a 13.04% decline from the previous year.
Investments from New Southbound countries into Taiwan saw 609 approved cases during the same timeframe, a remarkable annual increase of 41.30%. The total investment amounted to approximately US＄2.5 billion (about NT＄75.7 billion), up 25.20% from the previous year, with the largest inflows originating from Singapore, Thailand, and Malaysia.
On a broader scale, the 504 approved cases of outbound investments from Taiwan marked a 2.44% annual increase, surging by 145.61% financially to roughly US＄22.8 billion (approximately NT＄684.4 billion). This jump is primarily attributable to substantial investments by Taiwan Semiconductor Manufacturing Company (TSMC) in the United States and Germany.
Investments in New Southbound countries revealed 195 approved cases, rising by 35.42% year-on-year, totaling around US＄5.1 billion (approximately NT＄ 154.1 billion) and constituting 20% of Taiwan's total foreign investments. Singapore, Vietnam, and Thailand were the leading recipients.
Conversely, approved investments in Mainland China amounted to 305 cases, down by 7.58%, with the approved investment sum decreasing by 33.91% to approximately US＄2.96 billion (about NT＄88.9 billion).
Mainland Chinese investments in Taiwan experienced a 45.45% decline in approved cases to 24, with the investment figure falling 21.65% to about US＄27.4 million (approximately NT＄821.6 million).