About 21 percent of Taiwanese businesspeople in China say they plan to decrease their investment in China, a study funded by the Mainland Affairs Council showed.
The council enlisted an academic institution to investigate the challenges facing Taiwanese investors in China, and their plans to address them.
More than 60 percent of Taiwanese businesspeople based in China invest in the manufacturing industry, with a higher percentage of them involved in the manufacturing of electronics, electronic components, computers and optical products, the study found.
Photo: Chung Li-hua, Taipei Times
The businesspeople said their recent investment decisions were mostly influenced by Beijing’s policy of raising workers’ minimum wage.
The restructuring of the global supply chain — triggered by a trade dispute between the US and China — along with China’s changing environment for foreign investors have led to a decrease in investments in China, the study showed.
Nearly 70 percent of Taiwanese businesspeople said their investment in China would remain unchanged in the next three to five years, while only 10 percent said that they would expand the scale of their investments in China and 21.5 percent said they would decrease their investments.
Meanwhile, 45.4 percent of China-based Taiwanese businesspeople said they had reduced their investment because of geopolitical risks, while 40.2 percent said that demand from China’s domestic market has declined.
A relatively small number of the businesspeople surveyed said they remained positive about the potential of the Chinese market.
Overall, profits earned by Taiwanese businesspeople have declined in the past few years, particularly for those in the cement and construction businesses, the study showed.
About 40 percent said they planned to reduce their production capacity or the number of new employees, as they are more pessimistic about the prospects of the Chinese market.
More than 70 percent said that their investment strategies would be to bolster the research and development of products, branding and marketing, while 40 percent said they would increase their investment in Taiwan, Vietnam and other countries.
About 10 percent said that they are considering closing their businesses in China.
The government should recruit consulting firms to help Taiwanese businesspeople address issues around the withdrawal of their investments in China, the study said.
The government should have a comprehensive plan to attract Taiwanese businesspeople back to Taiwan to set up their operations domestically, it said, adding that the government could also invest in green energy, civil aeronautics and other key industries.
In addition to Taiwan, Taiwanese businesspeople should consider investing in Southeast Asian countries, middle and eastern Europe, South America and Africa, the study said.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
LANDSLIDES POSSIBLE: The agency advised the public to avoid visiting mountainous regions due to more expected aftershocks and rainfall from a series of weather fronts A series of earthquakes over the past few days were likely aftershocks of the April 3 earthquake in Hualien County, with further aftershocks to be expected for up to a year, the Central Weather Administration (CWA) said yesterday. Based on the nation’s experience after the quake on Sept. 21, 1999, more aftershocks are possible over the next six months to a year, the agency said. A total of 103 earthquakes of magnitude 4 on the local magnitude scale or higher hit Hualien County from 5:08pm on Monday to 10:27am yesterday, with 27 of them exceeding magnitude 5. They included two, of magnitude
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique