More foreign companies operating in Taiwan are preparing emergency plans as security concerns rise. However, actual disruption linked to tensions with China remains very limited, according to a survey released on Tuesday by the American Chamber of Commerce in Taiwan.

Taiwan, which is democratically governed, has faced increasing military pressure from Beijing in recent years. China claims the island as its own territory, a position rejected by Taiwan’s government. Beijing last conducted war games around the island in late December, adding to long standing regional unease.

AmCham Taiwan said in its 2026 Business Climate Survey that 46% of respondents were revising business continuity plans to bolster resilience. That figure rose from 40% reported in the previous year, reflecting growing caution among foreign firms.

Security Concerns Top Risk List

National security emerged as the top perceived risk to business operations in this year’s survey. Despite this, the chamber said only 7% of respondents experienced significant disruption in the past year due to tensions in the Taiwan Strait.

Personal anxiety levels among business leaders also showed little change. Respondents rated concern about increased military activity at three on a five point scale, the same as last year.

AmCham Taiwan chairperson Anita Chen said companies were choosing to remain in Taiwan despite geopolitical risks. She said the decision reflected stronger risk management rather than complacency.

Companies are staying not because conditions are easy, Chen said, but because they are improving their ability to manage risks through resilience planning and business operation strategies.

Investment Confidence Remains Strong

The survey showed continued confidence in Taiwan as an investment destination. AmCham Taiwan said 92% of respondents planned to maintain or increase investment on the island this year, underscoring sustained faith in Taiwan’s economy.

Taiwan is a global hub for semiconductor manufacturing, and that strength continues to attract foreign capital. The chamber added that overall business confidence remained high despite security concerns.

AmCham Taiwan said 206 of its 411 eligible member companies responded to the survey. The poll was conducted shortly before China’s most recent round of military exercises near Taiwan.

The chamber plays a key role as a bridge between foreign companies, particularly from the United States, and policymakers in both Taipei and Washington.

Tax Agreement Seen As Key Priority

Taiwan’s government has repeatedly urged swift passage of an agreement to avoid double taxation with the United States. The deal remains stalled in the U.S. Senate, but officials in Taipei argue it would encourage greater bilateral investment.

AmCham Taiwan president Carl Wegner said discussions in Washington suggested cautious optimism. He said 2026 appeared to be a good year with positive potential for the agreement’s approval.

Wegner added that visiting delegations consistently heard the message in Taiwan and carried it back to Washington. He said the chamber continued to push the issue as part of broader efforts to support investment stability.

With inputs from Reuters