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 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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