Changes that Taiwan made to rules for defense cooperation with foreign companies might discourage them from working with the archipelago, an American business group says — a view that comes just as China’s military shows off some key advances.
A policy that was tweaked last year "presents several challenges that risk undermining Taiwan’s attractiveness as a defense market,” the American Chamber of Commerce in Taiwan said in a paper on Tuesday. It added this could slow procurement and undercut the incentive for foreign firms to invest in Taiwan.
AmCham said "the rules are unclear about what kind of investments or technology-sharing companies are expected to provide in return for defense contracts,” calling on Taipei to safeguard commercial viability to encourage long-term spending on its defense industrial base.
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