Straits Exchange Foundation (SEF) Deputy Chairman Kao Koong-lian (高孔廉) yesterday said the foundation would ask China to consider giving Taiwanese businesses tax breaks to help them deal with financial difficulties resulting from the global economic downturn.
Kao said he hoped the Chinese government would consider alleviating the burden on Taiwanese investors by cutting taxes imposed on them.
“The entire global economy is in recession,” he said.
“There are different effects on each and every nation, but, mainland China is not as seriously affected as other nations,” he said.
Kao said that while he believed Taiwanese businesses should jump at the opportunity to invest in China, it was also true that investors there were facing difficulties.
“The implementation of the Labor Contract Law in mainland China has greatly increased the operational costs of Taiwan businesses in mainland China,” Kao said, referring to a law that raised the cost of labor by requiring employers to give their employees contracts and insurance.
The Labor Contract Law came into effect on Jan. 1 and stipulates that job contracts must be put in writing within one month of hiring an employee.
Employers must fully inform workers of the nature of the job, their working conditions and compensation. The law also limits employers from overrelying on temporary workers to keep personnel costs low.
Kao said that China’s land use law in cities and towns also placed a heavy burden on Taiwanese businesses and that the SEF hoped that Chinese government would consider allowing Taiwanese businesses to defer the payment of this tax.
“The SEF cares about the operations of Taiwanese businesses in mainland China,” Kao said. “We are using all possible means to understand the situation of Taiwanese businesses who operate businesses in mainland China.”
Kao said he would visit Taiwanese businesspeople in Xiamen, Fujian Province, on Saturday and would attend an annual celebration of the city’s Taiwanese business association.
SEF Chairman Chiang Pin-kung (江丙坤) will also visit Taiwanese business leaders in Guangdong and Jiangsu provinces from Jan. 7 to Jan. 11, Kao said.
“Both Chairman Chiang Pin-kung and I will use our opportunities to visit Taiwanese businessmen to find out their needs and help them in any way we can,” he said.