Most Taiwanese businesses have not been affected by Chinese drills, business group says

Most Taiwanese businesses have not been affected by Chinese drills, business group says

TAIPEI - Most of the members of the American Chamber of Commerce in Taiwan said they had not been significantly affected by recent Chinese military drills around the island, but had heightened concerns, the group said on Friday.

China, which claims Taiwan is its own territory, has been carrying out war games and exercises since U.S. 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 said their businesses had not been significantly affected, while 17% said they had experienced disruption, including increased shipping or insurance costs, or supply chain delays.

Nearly half of the 17% said the disruption stemmed from changes in policies or other manifestations of concern from their offshore headquarters.

46% of companies expected an increase in military activity this year and next would affect their operations, while the rest were unsure or did not expect to be affected, the group said.

Asked about the specific range of threats it added, companies listed key concerns as disinformation campaigns, restrictions or barriers on Taiwan's periphery, and sanctions, travel bans, boycotts, and embargoes against Taiwanese products and people.

The respondents' average concern about serious action being taken against Taiwan in the next 24 months was 2.8, according to the group's 1 to 5 rating with 1 being not concerned at all and 5 being very concerned.

AmCham Taiwan President Andrew Wylegala said the organisation has been calling for an ambitious agenda to accelerate economic cooperation with Taiwan through the 21st Century Trade Initiative - a new Taiwan-U. A bilateral trade agreement is eventually a result of the S. trade talks framework.

He added that the importance of supporting Taiwan's resilience through stepped-up economic collaboration and integration and the importance of Taiwan's economic relationship with the United States is also a security issue.