Despite a decision by the Kunshan City Government in China to postpone an order for factories along the Wusong River to shut down, Taiwanese companies said they might still have to reconsider their operations in China.
The city on Sunday issued an order for the immediate shutdown of 270 factories — half of which are Taiwanese — in a bid to reduce water pollution in the river.
The order, effective from Monday through Jan. 10, has since been put on hold.
Photo: CNA
Printed circuit board makers such as Career Technology (嘉聯益) saw their shares fall sharply yesterday on the Taiwan Stock Exchange following the announcement.
Career Technology said its production capability and finances would not have been greatly affected by the policy, but it is considering acquiring more factories elsewhere and expanding its Taipei plant.
Industrial computer manufacturer Advantech Co (研華科技) said its production would not have been affected, because it emits very little wastewater and the volume could be adjusted over the shutdown period.
Food conglomerate Uni-President Enterprises Corp (統一企業) said that it would have only been slightly affected by the restrictions to halve the release of wastewater, adding that its sales would not have been affected, because it has plenty of inventory.
Advanced Semiconductor Engineering Inc (ASE, 日月光半導體), the world’s largest chip packaging and testing services provider, said that it was observing the situation.
All factories should observe local regulations, Nanya Technology Corp (南亞科技) president Wu Chia-chau (吳嘉昭) said, adding that his company would select high wastewater emission plants for priority scaleback if needed.
The Chinese government is beginning to focus on environmental protection after decades of prioritizing economic growth and it is not shy about cracking down on companies to enforce its vision, Chinese National Federation of Industries secretary-general Tsai Lien-sheng (蔡練生) said.
However, the order to halt production in the Wusong River region would have hurt Taiwanese businesses, even though these businesses might have tested negative for pollution, he said.
China’s recent focus on environmental protection is one of eight major difficulties facing Taiwanese businesses in the region, the Taiwan Electrical and Electronic Manufacturers’ Association said.
While the measures do not single out Taiwanese companies, the time given for companies to make adjustments — between six months and one year — is not enough, the association said.
China might not be the best region for investment if Taiwanese businesses continue to focus on original equipment manufacturing, the association said, underlining the need for Taiwanese businesses to expedite their transition.
Businesses have no buffer if the city decides to intermittently initiate emergency shutdowns along river sections, Kunshan Taiwanese Business Association member Lee Kuan-hsin (李寬信) said.
China has made it clear that nature is to take precedence over economic growth and stricter regulations are expected next year, but it is unreasonable to halt production for an entire zone, Lee said.
Through communication, businesses and local governments would be able to tackle environmental pollution together, Kunshan association president Tsung Hsu-hui (宗緒惠) said.
Other Taiwanese companies said privately that they believed the policy affected the industry greatly and could diminish Kunshan’s attractiveness for Taiwanese businesses.
Additional reporting by Lo Chien-yi
CREDIT-GRABBER: China said its coast guard rescued the crew of a fishing vessel that caught fire, who were actually rescued by a nearby Taiwanese boat and the CGA Maritime search and rescue operations do not have borders, and China should not use a shipwreck to infringe upon Taiwanese sovereignty, the Coast Guard Administration (CGA) said yesterday. The coast guard made the statement in response to the China Coast Guard (CCG) saying it saved a Taiwanese fishing boat. The Chuan Yu No. 6 (全漁6號), a fishing vessel registered in Keelung, on Thursday caught fire and sank in waters northeast of Diaoyutai Islands (釣魚台). The vessel left Keelung’s Badouzih Fishing Harbor (八斗子漁港) at 3:35pm on Sunday last week, with seven people on board — a 62-year-old Taiwanese captain surnamed Chang (張) and six
RISKY BUSINESS: The ‘incentives’ include initiatives that get suspended for no reason, creating uncertainty and resulting in considerable losses for Taiwanese, the MAC said China’s “incentives” failed to sway sentiment in Taiwan, as willingness to work in China hit a record low of 1.6 percent, a Ministry of Labor survey showed. The Directorate-General of Budget, Accounting and Statistics (DGBAS) also reported that the number of Taiwanese workers in China has nearly halved from a peak of 430,000 in 2012 to an estimated 231,000 in 2024. That marked a new low in the proportion of Taiwanese going abroad to work. The ministry’s annual survey on “Labor Life and Employment Status” includes questions respondents’ willingness to seek employment overseas. Willingness to work in China has steadily declined from
The Legislative Yuan’s Finance Committee yesterday approved proposed amendments to the Amusement Tax Act (娛樂稅法) that would abolish taxes on films, cultural activities and competitive sporting events, retaining the fee only for dance halls and golf courses. The proposed changes would set the maximum tax rate for dance halls and golf courses at 50 and 20 percent respectively, with local governments authorized to suspend the levies. Article 2 of the act says that “amusement tax shall be levied on tickets sold or fees charged by amusement places, facilities or activities” in six categories: “Cinema; professional singing, story-telling, dancing, circus, magic show, acrobatics
INFLATION UP? The IMF said CPI would increase to 1.5 percent this year, while the DGBAS projected it would rise to 1.68 percent, with GDP per capita of US$44,181 The IMF projected Taiwan’s real GDP would grow 5.2 percent this year, up from its 2.1 percent outlook in January, despite fears of global economic disruptions sparked by the US-Iran conflict. Taiwan’s consumer price index (CPI) is projected to increase to 1.5 percent, while unemployment would be 3.4 percent, roughly in line with estimates for Asia as a whole, the international body wrote in its Global Economic Outlook Report published in the US on Monday. The figures are comparatively better than the IMF outlook for the rest of the world, which pegged real GDP growth at 3.1 percent, down from 3.3 percent
RSS