EDITORIAL: Lessons from China investment eraTaiwanese financial institutions in the past few years have slashed their exposure to China quickly and significantly, as they become more cautious about the growth prospects in the world’s second-largest economy, as well as the risks posed by rising local government debt and a persistent real-estate crisis. In contrast, financial holding companies’ aggregate exposure to the US rose to NT$10.48 trillion, or 35.27 percent of their combined overseas exposure at the end of last year. Banks’ exposure to the US also increased to NT$4.24 trillion and their share of total overseas exposure advanced to 28 percent in the year. At the same time, more Taiwanese firms are pursuing a “China Plus One” investment strategy to reorganize supply chains and avoid overconcentration on China. Regardless of overseas investments and industrial expansion, Taiwan must not experience short-term gains and long-term losses again.

Source: Taipei Times February 09, 2026 17:27 UTC