Taiwan: Cross-border opportunities amid global change

Rapidly changing political, economic and other factors in markets around the world all have the potential to disrupt Taiwanese companies engaged in cross-border business.

The UK's decision to "Brexit" from the European Union, the uncertain enforcement priorities of a new US presidential administration, potential policy shifts in China and recent upheavals in Asian multinational trade agreements create challenges for Taiwanese businesses venturing nearly everywhere in today's increasingly complex, fragmenting world. These are just a few of the volatile forces affecting cross-border business.

Yet opportunities exist amid the global uncertainties. Both inbound and outbound Taiwanese M&A activity has remained strong so far in 2017. The Asia-Pacific region, more broadly, recorded its highest-ever private equity (PE) buyout value in 2016. Recent financing transactions throughout the Asia-Pacific region highlight some intriguing trends. And just as the US is pulling out of the Paris Climate Agreement, Taiwan and other countries are expanding their investments in renewable energy and related technology. Groundbreaking technological advances are adding value in nearly every industry sector. Current developments, moreover, could be creating the right conditions for Taiwan to negotiate new trade agreements.

For Taiwanese businesses, the implications of these and other global changes are broad. Here is a quick glimpse of several risks and potential opportunities we currently see ahead on the near horizon.