Finnish investors in Taiwan

Rome/Helsinki [ENA] Finland's representative office in Taipei is the only Finnish representation in Taiwan. The island has begun receiving visitors and tourists in astonishingly large numbers and according to finnish visitors, Taiwan seems to be the nicest version of mainland China. The Democratic Progressive Party DPP and President Tsai Ing-wen have been leading Taiwan for over two years with a noteworthy majority in the Legislative

Yuan, Taiwanese parliament. The years have, however, been challenging for president Tsai. Beijing has demanded President Tsai and the ruling party to accept "1992 Consensus" and to continue their predecessor Ma Ying-jeou's policies that have been favorable for China. President Tsai has vowed to maintain the status quo in cross-straits relations but has also given emphasis to Taiwan's democratic right to make its own political decisions. At the moment, the import and export industries of Taiwan are highly dependent on Mainland China, which is definitely their most important trade partner. As a response to the situation, president Tsai's government has launched actions and "New Southbound policy" aiming at establishing closer

relations with ASEAN and South East Asian countries as well as with Australia and New Zealand. To maintain its competitive advantage, Taiwan needs to develop a different electronics manufacturing industry by introducing modern innovation and higher added value, such as IoT and AI solutions. Other future challenges include the phase-out of nuclear power and increasing green energy generation capacity by 2025, improving circular economy technologies and processes, combating low birth rate and brain drain and expanding foreign investment to Taiwan. Taiwan’s goal to develop a world-class green energy industry and reduce green-house gas emissions by 20%, and phase out nuclear energy by 2025 offer an abundance of business opportunities

for international companies. Recently Taiwan’s growing opportunities in Energy and EduTech stimulated Finnish corporations to conduct their businesses in Taiwan and find local partners to enhance their local ties. Recently, the Business Finland Organization hosted the 6th Taiwan-Finland Business Forum facilitating the visit of Deputy Minister and Under Secretary of State, Mr. Petri Peltonen, Ministry of Economic Affairs and Employment and of a business delegation from the Energy and the Education sectors. Taiwanese and Finnish companies in the energy and education sectors attended the event, which included: a business forum, site visits, and networking opportunities to explore business cooperation.

The business forum and discussion focused on three key sectors and topics: 5G and IoT application, EduTech, and Energy. The Taiwan External Trade Development Council (TAITRA), a government-sponsored trade promotion group, and its Finland counterpart signed a memorandum of understanding in Taipei aimed at promoting bilateral economic and trade cooperation. Under the MOU, businesses exchanges, including exchange visits by business groups in the two countries, are expected to increase, TAITRA said. The MOU was signed by TAITRA and Business Finland, the major Finnish funding agency for financial research and innovation, during the the Fifth Taiwan-Finland Economic and Trade Dialogue.

Actually, Business Finland is the most important public funding agency for research funding in Finland, and is directed by the Finnish Ministry of Employment and the Economy. Since 2018, the organization consists of two entities: the government agency Innovaatiorahoituskeskus Business Finland and Business Finland Oy, a government-owned corporation controlled by the agency. According to the agency, its purpose "is to promote the competitiveness of Finnish industry and the service sector by assisting in the creation of world-class technology and technological know-how".

Market opportunities for Finnish companies in Taiwan include education and education technology export, consultation in the processing and repository of nuclear waste, providing energy solutions that support circular economy, providing Taiwan's strong electronics manufacturing industry with innovative service solutions and providing new health and wellbeing solutions for the aging Taiwanese population, the Internet of Things (IoT), artificial intelligence (AI), emerging innovative applications and circular economy.The two countries are expected to continue to build their cooperation, against the backdrop of a new business model in the global manufacturing and service industries with the emergence of new generation technologies such as IoT

and AI. Finland is Taiwan's 15th largest trade partner in the European Union. Two-way trade between the two countries totaled US$534 million last year. In the first seven months of this year, Taiwan-Finland trade grew 33 percent, according to data from Taiwan's Ministry of Economic Affairs. For the future, perhaps the biggest challenges for Taiwan are an accelerating brain drain and young people leaving for work abroad. Especially in mainland China. According to official statistics, 728,000 Taiwanese workers have moved abroad (662,000 in 2009).

Of the 2016 outgoing, 73.4 percent have a higher secondary degree or a university degree. A significant brain drain . PRC also seeks to strengthen and attract the transfer of Taiwanese young people and workers to the mainland: the government of People's Republic of China removed all obstacles to labor mobility between Taiwan and mainland China. Taiwanese no longer need separate work permits in PRC. People's Republic of China companies also attract young Taiwanese experts with significantly higher salaries. Perhaps, as never in its history Taiwan needs a new high standard economic immigration today.