U.S. business group says members see limited impact from Taiwan-China tensions

A Taiwan Coast Guard ship passes off the coast of China, in the waters off Nangan Island in Taiwan’s Matsu Archipelago, August 16, 2022. REUTERS/Ann Wang

TAIPEI, Aug 19 (Reuters) – A majority of members polled by the U.S. Chamber of Commerce in Taiwan said they had not been significantly affected by recent Chinese military exercises on the island, but had raised concerns, the group said Friday.

China, which claims Taiwan as its own territory, has been conducting war games and exercises since US House Speaker Nancy Pelosi visited Taipei this month.

AmCham Taiwan said 126 of its 529 members responded to the Aug. 8-17 survey. Seventy-seven percent reported that their businesses had not been significantly affected, while 17% said they had experienced disruptions, including increased shipping or insurance costs or delays in supply chain

Almost half of the 17 percent said the disruption came from “changes in policy or other expressions of concern from their headquarters abroad,” it added in a statement.

Looking further ahead, 46 percent of companies surveyed expected increased military activity this year and next to affect their operations, while the rest were unsure or did not expect to be affected, the group said.

Asked about the specific “spectrum of threats,” the companies listed key concerns as general tension, including disinformation campaigns, restrictions or “barriers on Taiwan’s periphery, and sanctions, travel bans, boycotts and embargoes against products and Taiwanese people”.

On a scale of 1 to 5, with 1 being not at all concerned and 5 being very concerned, respondents’ average level of concern about serious actions to be taken against Taiwan in the next 24 months was 2.8, say the group

AmCham Taiwan President Andrew Wylegala said the organization has called for an ambitious agenda to accelerate economic cooperation with Taiwan through the 21st Century Trade Initiative, a new framework for trade talks between Taiwan and the US, and finally a bilateral trade agreement.

“Developments in recent weeks underscore the importance of supporting Taiwan’s resilience through intensified economic cooperation and integration, and the crucial fact that Taiwan’s economic relationship with the United States is also a security concern,” added.

Reporting by Ben Blanchard. Editing by Gerry Doyle

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