The ABCs of doing business in Taiwan - American Institute in Taiwan

Business America, August 24, 1992 by Raymond J. Sander

In the alphabet soup of organizations in Washington, there are a few key letters you should know if you are interested in doing business in Taiwan. In 1979, the United States terminated formal diplomatic relations with the ROC, the Republic of China, as the sole legal government of China. However, the President and the Congress wanted to have a way of maintaining a relationship with the people on Taiwan and, therefore, created AIT, the American Institute in Taiwan. This non-profit corporation was authorized in 1979 by the TRA, the Taiwan Relations Act (PL-96-8), to be the entity for the "continuation of commercial, cultural, and other relations between the people of the United States and the people on Taiwan. " The TRA also provided that "any programs, transactions and other relations conducted or carried out by the President or any agency of the United States government with respect to Taiwan, shall ... be conducted and carried by or through the AIT."

AIT's headquarters are located in Arlington, Va. The majority of AIT's staff resources is located in Taipei, Taiwan and they are involved in a wide range of activities, including commercial services, economic and political reporting, agricultural sales, cultural exchange, foreign military sales, assistance to U.S. citizens who require notarials and other consular-type services, and acceptance of applications for visas from Taiwan business people, tourists, students, and immigrants who wish to travel to the United States. AIT also has a small branch office in the city of Kaohsiung which handles local commercial promotion, information and cultural work, and political and economic reporting.

Of particular interest to U.S. exporters is the AIT Commercial Section in Taipei, which offers the full range of business services normally provided through the Commerce Department's U.S. and Foreign Commercial Service. These include trade and investment opportunities, identification of potential buyers and representatives for U.S. exporters, and an aggressive trade promotion effort through trade missions and trade shows at the Taipei World Trade Center. In recognition of the importance of the Taiwan market, AIT is increasing the staffing level of the commercial office in Taiwan so that AIT will be able to respond to the growing demand for commercial services.

From the Taiwan side, there are also some important letters to remember. Since there is no diplomatic relationship between the United States and Taiwan, you will not find a Taiwan Embassy or Consulates in the United States. Instead, the people on Taiwan are represented by an unofficial organization, the Coordination Council for North American Affairs (CCNAA). Located in Washington, D.C. and 11 U.S. cities, CCNAA offers many services which can be helpful to American exporters, such as visas to travel to Taiwan, information on Taiwan laws and procedures, and business opportunities. Another organization which can be helpful is CETRA, the China External Trade Development Council. This non-profit foundation is organized by the Taiwan business community and receives support from the Taiwan authorities. CETRA has offices in New York, Chicago, and San Francisco. While CETRA can answer a wide range of questions, it specializes in helping U.S. firms identify potential Taiwan suppliers and exporters.

There are two last alphabetic entries for success in the Taiwan market: USA-ROC Economic Council and AMCHAM. The Economic Council, with 375 members, is the private foreign trade association responsible for developing business relations with Taiwan. Members are affordable representation and assistance in Taiwan, as well as newsletters and detailed information on trade, business, and investment opportunities in Taiwan. The Economic Council's annual business conference is an excellent meeting-ground for public and private sector representatives from Taiwan and the United States. This year's meeting is scheduled for Dec. 3-5 in Taipei.

The AMCHAM is the American Chamber of Commerce. In TAiwan, there are two AMCHAMs, one in Taipei, and another in Kaohsiung. These two AMCHAMs have over850 members who are actively involved in the Taiwan market. The AMCHAM is a reliable source of market information and an active policy advocate for U.S. business in Taiwan.

This network of public and private organizations, along with the Department of Commerce, represents a powerful resource to those American business that are ready to add the considerable Taiwan market to their future business plans.