A new annual survey of British businesses operating in Taiwan has found that political variables are increasingly shaping UK firms' decisions on further expansion in Taiwan — ranging from domestic political uncertainty to strained cross-strait relations.
Among 63 British companies surveyed between December 2024 and January 2025, 61% cited domestic political uncertainty in Taiwan as the single biggest factor affecting their business positioning in Taiwan. That figure exceeded concerns over New Taiwan Dollar exchange rate volatility (54%) and U.S. reciprocal tariffs (49%).
Cross-Strait Relations Now Top Policy Priority for UK Firms in Taiwan
The 2025–2026 UK-Taiwan Business Relations Survey was commissioned by the British Office Taipei and conducted by the British Chamber of Commerce in Taipei. The survey has been conducted annually since 2017, tracking British business sentiment on Taiwan's economic and operating environment, including regulatory barriers, policy changes, and supply chain conditions.
Ruth Bradley-Jones , the British Representative to Taiwan, said at the survey launch on March 16 that the two sides completed signing of the three pillars of the Enhanced Trade Partnership (ETP) last year — covering investment, digital trade, and energy and net-zero emissions — establishing a foundation for bilateral economic cooperation.
"This year, our core objective is to convert these frameworks into substantive two-way investment momentum," Bradley-Jones said. She added that Taiwanese companies were invited to participate in the survey for the first time, reflecting an effort to better understand bilateral business needs.
80% of UK Firms Satisfied With Taiwan Operations — A Three-Year High
Overall business confidence among British firms in Taiwan remains strong. Some 80% of respondents expressed satisfaction with their current operations, the highest level recorded in three years. In addition, 64% said they expected revenues to grow further in 2026.
Geopolitical factors, however, remain a material constraint on forward planning. According to the survey, 61% identified Taiwan's domestic political uncertainty as the most significant risk to their business positioning — above currency risk and U.S. tariff exposure.
The British Office Taipei and the British Chamber of Commerce in Taipei released the 2025–2026 UK-Taiwan Business Relations Survey on March 16. British Representative Ruth Bradley-Jones (front row, fourth from left) attended the launch.
On Taiwan's broader economic outlook, the survey identified the highly uneven distribution of benefits from export-driven growth as a negative factor. Geopolitical tensions — particularly strained cross-strait relations and global policy uncertainty — were also cited as contributing to a cautious operating environment, dampening client confidence and complicating strategic planning.
The latest UK-Taiwan Business Relations Survey shows 80% of British firms in Taiwan are satisfied with their operational performance. (Provided by the British Office Taipei)
Firms Say Cross-Strait Risk Will Require "Longer Deliberation" on Future Investment
In this year's survey, cross-strait relations climbed to first place, overtaking both talent development and "adequate energy supply," which had consistently ranked first for several years.
Mike Jewell, the independent consultant who conducted the survey, noted at the briefing that the share of British firms reporting no current operational impact from poor cross-strait relations remained at 73%, unchanged from the previous year's figure.
He nonetheless flagged that this stability should not be taken for granted. Looking ahead, companies would likely need more time to weigh the potential implications of deteriorating cross-strait relations, and long-term investment decisions would require considerably more deliberation.
Jewell observed that when firms were asked what actions they wanted the government to take, a rising level of concern over improving cross-strait relations was evident — a pattern he said was consistent with findings from other surveys conducted in Taiwan.
He concluded that, in the view of many companies, poor cross-strait relations had effectively become the single most important factor in their strategic calculus.
UK Leads Europe With 1,580 Investment Cases in Taiwan
According to figures cited by Taiwan's Ministry of Foreign Affairs based on official UK statistics, the United Kingdom is Taiwan's third-largest trading partner in Europe, while Taiwan ranks as the UK's 11th-largest trading partner in Asia.
Data from Taiwan's Investment Commission under the Ministry of Economic Affairs show that, as of November 2025, Taiwanese companies had established 254 investment cases or business presences in the UK — the second-highest among European destinations, behind Germany.
In terms of investment value, cumulative Taiwanese investment in the UK reached approximately USD 3.408 billion as of March 2026, representing 15.46% of Taiwan's total investment in Europe and ranking third, behind Germany and the Netherlands.
Over the same period, British companies recorded 1,580 investment cases or business establishments in Taiwan — the highest of any European country. Cumulative investment value reached approximately USD 15.52 billion, accounting for 19.15% of total European investment in Taiwan and ranking second, behind the Netherlands.
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