Research and analysis

Taiwan - visit by Grant Shapps MP, Minister without Portfolio

Published 21 January 2015

This research and analysis was withdrawn on 1 August 2016

This publication was archived on 4 July 2016

This article is no longer current. Please refer to Overseas Business Risk - Taiwan

This publication was archived on 4 July 2016

This article is no longer current. Please refer to Overseas Business Risk - Taiwan

Summary

A strong push for the UK’s prosperity agenda in Taiwan – both inward investment and to support UK businesses here. Excellent opportunity for early engagement with new city governments in key municipalities.

Detail

In a busy programme across government and business, Grant Shapps was able to reinforce to Taiwanese business, government and the media key messages on the strengths of the UK economy (fastest growing in the G7, IMF predictions that the UK will be the biggest economy in Europe by 2030, increasing job creation/falling unemployment), the government’s business-friendly policies (taxation, employment regulations), and our openness to overseas investment. The Minister also showcased other areas of UK expertise, including Smart Cities and railways where we shortly have incoming trade missions.

Inward investment

Grant Shapps’ main focus – as designated Ministerial contact – was a call on Quanta, one of only 18 companies worldwide selected for HMG’s “Tomorrow’s Champions” programme. Quanta are one of the leading ICT hardware manufacturers (global no.1 for Android tablets, all-in-one PCs and notebooks, no.3 for servers and wearable devices), but they are increasingly diversifying (15% of revenue from cloud-related technology in 2013). Quanta presented their developments on telemedicine/e-health where they hope to partner with UK interests.

Grant Shapps set out our advantages in R&D, brainpower and talent in our world-leading universities, the digital adoption of services by government and consumers, Tech City, the “Patent Box”, the Digital Future Cities and other Catapult Centres and our Knowledge Transfer Networks. Chief Technology Officer Ted CHANG said Quanta wanted to develop a long-term strategic partnership with the UK, and saw Quanta offering start-ups such as those in Tech City the opportunity to develop and scale up their businesses. Chang accepted Grant Shapps’ invitation to the UK in 2015.

Financial Supervisory Commission (FSC)

With FSC Chairman TSENG, Mr Shapps welcomed recent deregulation and reform of the financial services sector, but hoped to see further relaxation, in particular to allow Taiwanese insurance companies (with assets close to £365bn) and pension funds greater flexibility to invest overseas. While welcoming recent large scale investments into UK commercial property by insurers, Grant Shapps hoped they might also look at investment in the UK’s massive infrastructure programme which offered sustainable returns in a stable economic environment. Tseng was receptive, and also hoped to see more UK financial services businesses bringing financial innovation to Taiwan. We underscored our wish to strengthen collaboration on offshore RMB business.

Mayors of New Taipei City and Taoyuan City

With the recently re-elected Mayor of New Taipei, Eric CHU, and the newly-elected (opposition DPP) Mayor of Taoyuan CHENG Wen-tsan, Grant Shapps was able to promote UK expertise in Smart Cities (we have introduced municipal officials to UK companies attending this week’s Smart Cities Summit & Expo in Taipei) and railways(Baroness Kramer DfT leads a large UK railways mission to Taiwan next week). Both cities envisage significant transport infrastructure developments in the coming years.

In Taoyuan, Cheng explained his approach to the massive Aerotropolis project where, following his election, he has announced an investigation into the arrangements for the holding/development company, where he wanted greater public transparency. But the project would proceed to deliver an enhanced airport, greater integration of industry, improved logistics/transhipment facilities, more social housing and an “intelligent city”, alongside metro rail development and a push on the creative/cultural and financial services sectors. Grant Shapps highlighted the UK’s strengths in airport management, project management and large-scale infrastructure projects (London Olympics, Crossrail). He invited Cheng to the UK to meet UK experts in all these areas and, as former Housing Minister, on social housing.

Other business and government contacts

Grant Shapps was able to exchange views with Taiwan investors established in the UK (Acer, Hiwin, Kings Metal Fibre Technology), a potential Taiwanese investor (San Fu Global), and UK hi-tech companies based in Taiwan (BSI, Delcam and Oxford Instruments). And he met Vice Minister of Foreign Affairs Vanessa SHIH; the President of Taiwan’s export promotion agency TAITRA, Peter HUANG; and President SHYU and staff from Taiwan’s leading government-backed Industrial Technology Research Institute (ITRI). Taiwanese partners welcomed the UK’s openness to investment. The Minister exchanged views on our collaboration with ITRI on climate change; the challenges facing Taiwan’s energy policy-makers, especially over nuclear power; and the scope for collaboration on 5G technology. Shih pressed the case for a Taiwan-EU bilateral investment agreement as a first step towards an Economic Co-operation Agreement.

Disclaimer

The purpose of the FCO Country Update(s) for Business (”the Report”) prepared by UK Trade & Investment (UKTI) is to provide information and related comment to help recipients form their own judgments about making business decisions as to whether to invest or operate in a particular country. The Report’s contents were believed (at the time that the Report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by UKTI or its parent Departments (the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS)) as to the accuracy of the Report, its completeness or its suitability for any purpose. In particular, none of the Report’s contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by UKTI, the FCO or BIS for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with the Report.