## Economic Dynamics in Taiwan Taiwan is experiencing a period of significant economic changes. While it benefits from preferential trade tariffs that favor exports, there is a contraction in direct investments towards China and Vietnam. This phenomenon is attributable to several factors, including increasing geopolitical tensions, rising production costs in China, and the search for more diversified and stable markets by Taiwanese companies. Competition with other emerging nations in Southeast Asia further contributes to this trend. Taiwanese companies are therefore reconsidering their investment strategies, evaluating new destinations and sectors to sustain long-term economic growth. Technological innovation and market diversification are key levers for addressing current challenges. In this context, the Taiwanese government is implementing policies to encourage domestic investment and attract foreign capital, with the aim of strengthening the country's economic resilience.