TAIPEI (Taiwan News) — The Ministry of Economic Affairs (MOEA) on Tuesday (Sept. 5) praised the impact of the New Southbound Policy on Taiwan’s foreign trade and investment relations.

The government launched the policy in 2016 to reduce the economy’s dependence on China, given its repeated threats of military force. The policy proposed closer economic, cultural and education ties with 18 countries from India to Australia, and New Zealand.

At a forum in Taipei City on Tuesday, MOEA Vice Minister Chen Chern-chyi (陳正祺) identified the benefits the country had drawn from seven years of New Southbound Policy, Radio Taiwan International (RTI) reported. The policy has brought explosive growth to trade between Taiwan and the New Southbound countries, and strengthened bilateral relations, he said.

In 2022, trade reached US$180.3 billion (NT$5.75 trillion), with Taiwan’s exports to the 18 countries totaling US$96.9 billion, in both cases breaking records. Investments by Taiwanese businesses in the New Southbound Policy countries had surged by 120% since 2016, according to Chen.

Companies from Taiwan were active in circuit board printing in Thailand, electronics in north Vietnam, new energy in Indonesia, and chips packaging in Malaysia, the vice minister said. In order to minimize risk, global supply chains were adjusting and moving into Southeast Asia, where Taiwan had an advantage by having invested there early, Chen told the forum.