How to avoid becoming collateral damage in the US-China “tech war”
The benefits of paying close attention to details of US export controls and economic sanctions
Amid global market uncertainties and shifting regulatory priorities, where the only constant is change, Taiwanese businesses still can plot strategic pathways to success.
Welcome to our fourth report on global trends and opportunities for Taiwanese companies and investors conducting business internationally.
Although disruptive forces continue to buffet markets worldwide, advantages exist for savvy business leaders who pay close attention to global trends and act accordingly.
With the United States focusing more and more on China's technology industry as a national security priority, Taiwanese companies should take specific steps to decrease their risk of becoming collateral damage in a US-China "tech war." Similarly, despite a heightening US-China trade war, careful assessments of any supply chains that include China-made parts and related actions can help protect Taiwanese companies' access to US markets.
Design patents offer increasingly useful protections for design-focused Taiwanese companies that operate in the US. In the energy sector, Taiwan's offshore wind sector demonstrates vibrant potential for growth, particularly if Taiwan successfully resolves a few key challenges.
A new dynamism in the European Union's approach to antitrust enforcement provides guidance for growth-focused Taiwanese companies. And a recent change to US antitrust enforcement policy provides a compelling incentive for Taiwanese businesses to review their internal compliance programs and controls.
We hope you find this useful, and we look forward to seeing Taiwanese businesses grow and thrive in the year ahead.
After many years of careful planning the Taiwan offshore wind sector is gaining traction, but challenges remain
This year is proving to be a threshold year of achievement for the Taiwan offshore wind sector, with many years of careful planning and development activity starting to deliver results.
German developer wpd's 640 MW Yunlin offshore wind project reached financial close in June 2019, becoming the first large-scale offshore wind project to reach financial close in Asia- Pacific. A strong pipeline of projects follows hot on the heels of Yunlin's success, including Macquarie/ Swancor's 378 MW Formosa 2 project, Copenhagen Infrastructure Partners' 600 MW Changfang and Xidao project, Ørsted's 605 MW Changfang 1 project and wpd's 350 MW Guanyin project. A string of further planned Taiwan offshore wind projects are forming an orderly queue.
This impressive rollout of development activity promises to keep Taiwan's offshore wind market participants busy for many years to come.
In addition, the success of the offshore wind sector in Taiwan is also encouraging activity in other new offshore wind markets in the region, including Japan, Korea, India, Vietnam and Australia. The offshore wind sector took its first cautious steps off the coast of Denmark in 1991, and it is now making confident strides around the Asia-Pacific region.
The Yunlin project was an important milestone in the offshore wind sector for many reasons:
The successful equity sell-down process on Yunlin was an equally important step forward for the market. A consortium of Japanese investors led by Sojitz Corporation acquired a 27 percent stake, emerging victorious from a hotly contested auction process involving a number of large players in global infrastructure investment.
The Taiwan offshore wind sector has been a key catalyst in attracting the attention of many of the world's largest infrastructure fund investors to the Asian infrastructure market. The exceptionally deep pools of global infrastructure fund capital are increasingly focused on infrastructure in the region.
This trend is certain to have important consequences both for Taiwan specifically and for the Asian infrastructure market more broadly. If well-structured projects can tap into this interest effectively, it will fundamentally improve the prospects for addressing the region's huge gap between infrastructure demand and development.
Still, important challenges remain to be addressed for the Taiwan offshore wind project pipeline to prove itself sustainable in the medium term:
Although challenges remain, the Taiwan offshore wind sector is surging forward. Other offshore wind markets around the region will follow in its wake.
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