Weak outlook dampens confidence of German companies in Taiwan

German companies in Taiwan are concerned about their business on the island, known for its high-tech products, due to ongoing global risks, a business climate survey released by the German Trade Office (GTO) in Taipei showed on Thursday.

The annual report found 61.1% of respondents cited global economic growth as among their most pressing challenges, followed by relations with China (58.3%) and Taiwan's economic growth (48.6%).

Concerns over energy security have increased since the outbreak of the conflict in the Middle East. 

Karsten Tietz, director general of the German Institute Taipei, Germany's representative office in Taiwan, told dpa that the war in Iran is unlikely to affect German investment in Taiwan. Tietz also noted that China's stance toward Iran must be closely monitored.

"This war shows again our vulnerability four years after the war in Ukraine. Again, dependency on fossil fuels proves to be something that is threatening our security," Tietz said in his remarks at the survey release event.

Only about half of companies (52.1%) reported being satisfied with their situation, marking a five-year low.

Of the 260 companies contacted, 28% responded.

The survey also found that the global artificial intelligence (AI) boom has benefited many German firms, with 54.2% reporting positive effects, particularly in automation and semiconductors.

"Although overall satisfaction has moderated, both operational results and bilateral trade figures show that German companies in Taiwan remain highly competitive and well positioned for future growth," said Eva Langerbeck, chief representative and executive director of the GTO Taipei office.