US businesses remain confident in Taiwanese economy

美國企業對台灣經濟仍有信心

AmCham calls for further deregulation on path to Taiwan-US FTA


TAIPEI (Taiwan News) — U.S. businesspeople remain confident in both Taiwan’s economy and their own company’s prospects, and despite the challenges of the pandemic, the majority are confident in Taiwanese market conditions.

This is according to the American Chamber of Commerce‘s (AmCham) 2023 Taiwan Business Climate Survey released on Tuesday (Feb. 7). AmCham surveyed members between Nov. 15 and Dec. 16, 2022, showing 85% of respondents felt confident about Taiwan’s economic outlook over the next three years.

Confidence aside, AmCham called on Taiwan to speed up deregulation in order to set the conditions for a Taiwan-U.S. free trade agreement. “Taiwan requires a faster pace of economic reform and international economic engagement if it is to build the resilience needed to prosper,” AmCham said.

While nearly 90% of AmCham members said they planned to maintain or increase investment in Taiwan, over a third said they would like to see less regulation in the economy.

“Respondents identified regulations and policies as the most important area for improvement of Taiwan’s business climate,” AmCham said. Some respondents said they felt Taiwan’s laws and regulations have not been updated in response to changing societal and economic needs, and that regulations are interpreted inconsistently.

“As sound regulatory practices are a focus area of the U.S.-Taiwan Initiative on 21st-Century Trade, AmCham recommends the government consider the Chamber’s constructive criticism and strive to establish a more investment-friendly regulatory environment,” the report said.

Cross-strait relations were less of a concern for respondents. “67 percent reported no significant disruption by increased tensions across the Taiwan Strait during the second half of 2022,” AmCham said, but noted that nearly half of businesses surveyed have updated business continuity plans to address the new geopolitical climate.

Over half of the companies surveyed have formally committed to achieving net-zero carbon emissions, 100% renewable energy, or “similar initiatives,” however the report did not explain what those initiatives were. Despite making this commitment, some respondents reported concerns about the availability of green energy sources in Taiwan.