Taiwanese Firms Show Decreased Concern Over US-China Conflict, Continue Business with Mainland: CSIS Survey Highlights

Concerns among Taiwanese businesses about a potential US-China conflict have decreased since 2022, according to a study by an American research institute. The report also noted that firms in Taiwan are maintaining their commercial activities with mainland China.

A recent survey indicates that Taiwanese firms are maintaining trade relations with mainland China and seem less worried about the prospect of war than they were two years ago.

According to a report from the Centre for Strategic and International Studies, a Washington-based think tank, businesses are implementing various strategies to mitigate risks.

The study indicated that there was a 10-point decrease in businesses' anticipation of a U.S.-China conflict compared to 2022, leading them to be more hesitant about completely relocating from mainland China.

"The report highlighted a significant shift, with the percentage of individuals anticipating a military confrontation between the US and China within the next five years decreasing by more than 10 percentage points, from 38.7% to 28.2%."

The percentage of people who thought Taiwan's semiconductor industry would deter an attack from the mainland decreased from 50.5% to 45.6%. Similarly, those who felt the industry would motivate the US to defend the island also declined, from 54.8% to 48.9%.