One of these reports was about debt issues between companies, while the other had to with the personal safety of investors. Both show the great risks in investing in China.
In the first case, bad business management was the reason why the SVA Group was unable to repay its debt to Taiwanese businesspeople. No creditors’ meeting was held during its restructuring to come up with a solution. Instead, valuable assets were sold off, leaving what was left in a mess. Normally, when there are disputes over debt, the creditor should request repayment of the debts owed to them. However, in this case, the China-based Taiwanese businesspeople had to bow out and seek assistance from the MAC — which was not much of assistance. This clearly shows the shortcomings of China’s business and judicial system.
In the second case, the death and injury of Taiwanese businesspeople was a result of China’s legal shortcomings. Beijing lacks a mechanism for dealing with disputes between employers and employees. There have been numerous reports of workers resorting to violence when their demands were not met, resulting in tragedy for many Taiwanese nationals doing business in China.
Straits Exchange Foundation statistics from 1991 to the present show that 102 Taiwanese businesspeople have been murdered and more than 300 have disappeared in China, highlighting major issues with public safety. Taiwanese businesspeople in China have had to deal with problems such as bad loans and having their things taken by force. Most of them do not dare let others know they have been cheated and chalk it up to bad luck. In reality, the Chinese market is a dark jungle where surviving involves the strong bullying the weak and officials suppressing citizens.
To get ahead in China, businesses often connive with government officials and pay protection money to get political backing. In this treacherous jungle, there are no guarantees for the personal safety of businesspeople or their business assets. However, the weak voices of complaining Taiwanese businesspeople have been drowned out by all the talk about Chinese purchasing delegations and Chinese investment in Taiwan.
While the government glorifies China as a paradise for Taiwanese businesspeople, these news reports show how businesses are committing suicide by investing in China. Taiwanese businesspeople have to wake up now before they fall further into the dark abyss that is China.
TRANSLATED BY DREW CAMERON
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