China Business

Business Information from across China
Helping your Business with China

China Business » Places in China » Taiwan (Republic of China)

Places in China: Taiwan (Republic of China)

When preparing to do business in Taiwan, overseas business people should do a thorough study of Chinese business practices. Although Taiwan does not claim to be basically separate from the PRC nor does it claim to be a part of the PRC, the business customs and practices are quite nearly the same as in mainland China. The people of Taiwan are Chinese ethnically and have the same cultural background. The region seems to have been in limbo for some time and most likely will reunite with mainland China in the future.

Being a group of islands surrounding the big island of Taiwan, shipping on an international level is a basic industry. In its past, Taiwan has found that many foreign nations have wanted to be a part of its business picture. However, Taiwan has its own shipping and warehousing industry which is doing well.

As long ago as 2001, Taiwan had 249 vessels of its own totalling 4,740,660 gross tons. They also carried half a million passengers during that year. Their Evergreen Marine Corporation is the world's second largest container shipping company. The island is constantly ordering new vessels to add to their fleets.

Improvements are being ordered for harbour services to make their operations more efficient, both for local shippers and international users. Efforts are being made to be able to take semi-finished products from the PRC and assemble them on Taiwan's shores in order to add the label 'made in Taiwan' to the products.

Although Taiwan's manufacturers find markets, they are also an outsourcing element for manufacturers of other countries. Their cheaper labour and highly-educated work force make them highly competitive for outsourcing. They are also pushing for more research and development investments by outsiders.

One of the major negative elements concerning investing in Taiwan is the insecurity of their future. Until they reunite with the PRC, the ROC may find investments lower than they prefer.