Taiwan tells start-ups to shun mainland China and go to Japan instead

• Taiwan is nudging its small and burgeoning companies to expand in Japan rather than mainland China, in a fresh sign of global supply-chain decoupling amid Sino-US tensions.
• Head of Taiwanese government-backed group says shift to Japan is being encouraged as ‘one of the new government policies’
• They also said government agencies are not allowed to steer start-ups toward mainland China, even though it has been the major offshore landing spot for Taiwanese capital since the 1980s.
• The island’s domestic start-ups are being encouraged to enter the Japanese consumer market or partner with companies from the neighbouring Asian economy
• Taiwan’s tilt toward Japan follows efforts in the West over the past few years to diversify supply chains away from mainland China.
• Tensions across the Taiwan Strait have been on the rise as US-China ties plunged in recent years. The US has also moved to cut China from the global supply chain of key technology products.
• Investments in Japan approved by Taiwan reached USD1.7bn in 2022, up from USD728.74mn in 2021 and USD964.37mn in 2020, according to data from the Ministry of Economic Affairs Investment Commission.

External Link : https://www.scmp.com/economy/china-economy/article/3209255/taiwan-tells-start-ups-shun-mainland-china-and-go-japan-instead-amid-supply-chain-decoupling