“Zhejiang has a strong economic history and demand for high-tech products, and support from the local government has helped Taiwanese companies,” said Darson Chiu, a researcher at the Taiwan Economic Research Institute.
Investment between Taiwan and mainland China dips for the first time in 22 years as relations deteriorate
Investment between Taiwan and mainland China dips for the first time in 22 years as relations deteriorate
However, industry analysts say the forums, tax breaks, reduced red tape and land discounts offered by the government in some parts of mainland China are still not enough to attract investment from Taiwanese companies that have not yet entered the market. List and industry association officials said.
Mainland Chinese officials are expected to step up efforts to attract investment this year., It focuses on unifying the two sides of political opposition.
Beijing considers Taiwan to be part of China and can be reunified by force if necessary. Most countries, including the United States, do not recognize Taiwan as an independent state, but the United States opposes any attempt to seize the self-governing island by force and is committed to providing arms.
Many Taiwanese investors in Shaoxing already had businesses in mainland China, said Chen Yuyuan, director of the Taiwan Electrical and Electronics Industry Association.
02:12
China's top diplomat warns Taiwanese independence supporters will 'play with fire and get burned'
China's top diplomat warns Taiwanese independence supporters will 'play with fire and get burned'
He said the networking includes proposals such as seeking Taiwan's assistance in building a baseball stadium.
The 3,200 association members have already launched more than 10,000 projects, including factories, in mainland China.
Chen Yuyuan, who attended the event in Shaoxing, said members felt “safe” to invest in mainland China despite political tensions. Some businesses around mainland China are also taking advantage of government subsidies.
However, he added that the number of members with projects in mainland China has seen little increase or decrease in recent years.
As China's economy slows, companies face increasing competition, difficult rules, and the need to smartly navigate cultural differences.
“As China's economy slows, companies are facing increased competition, difficult rules, and the need to smartly deal with cultural differences,” Qiu said.
Taiwanese investors have been choosing mainland China locations since the 1980s to harvest cheap labor and land, and many now take advantage of mature supply chains and strong factory infrastructure.
Joanna Lei, CEO of Taiwanese think tank China 21st Century, said Taiwanese companies with roots in mainland China can mitigate business risks associated with growing cross-Strait political friction.
Taiwan remains one of the biggest investors in China, including home appliance assemblers and food and beverage retailers, according to Taiwan Cabinet data.
Due to cross-Strait relations, people are worried about whether they will get their money back and find it increasingly difficult to invest.
“If you're looking to do business there and expand, there may be common interests,” said Chen Yifan, assistant professor of diplomacy and international relations at Taiwan's Tamkang University.
“But I don't think Taiwanese people will invest over there unless they already have a company or factory.
“Because of cross-Strait relations, people are worried about whether they will get their money back and are finding it increasingly difficult to invest.”
There is so much uncertainty about where the economy is going that you need an investment plan to invest.
The Mainland Affairs Commission said incentives for mainland investors are ineffective, but also pointed to weaknesses in Taiwan's economy, which faces real estate, employment and consumer confidence issues.
“Where the economy is going is a huge uncertainty. If you want to invest, you need to have an investment plan,” said Liang Guoyuan, former founder of the Yuanta Polaris Institute, a Taipei-based think tank. says.
“That planning needs to take into account the macro environment.”
Taiwanese investors are looking for long-term improvements in where they do business to enable “sustainable development,” said Hu Jingli, a professor at Taipei's National Yangming Jiaotong University Institute of Business Management. said.
“Time-limited incentive schemes such as tax breaks and real estate loans cannot keep investors in one place and continue to grow,” Hu said.
Li Xi, a member of the Politburo Standing Committee, also called on mainland China's southern Fujian province to “explore new paths toward integrated development across the Taiwan Strait.”
US companies in Taiwan adapt to increasing investment by choosing local partners: AmCham
US companies in Taiwan adapt to increasing investment by choosing local partners: AmCham
Last year, Fujian Province was directed to become a demonstration region for integrated development with Taiwan.
And Taiwan offices in other parts of China's coastal regions, such as Shanghai and Guangdong province, are also likely to jump on the cause of recruiting Taiwanese businessmen, said Associate Professor of Foreign Affairs at National Chengchi University in Taipei. Huang Guibo says.
In 2022, Taiwanese residents will also receive special permits to operate businesses in 27 pilot regions in mainland China, including Beijing and Shanghai.
If people there like what you design, the whole country will like it.
Liang said the Chinese government is seeking investment in Taiwan for economic revitalization and “political considerations.”
Last year, mainland Chinese authorities declared Shaoxing a Taiwanese digital cooperation area ahead of a networking event.
Shaoxing city and Zhejiang province bill themselves as hotspots for investment in the digital economy and artificial intelligence, Chen Yuyuan said.
He said consumer trends that start in wealthy Zhejiang province often spread across the country.
“If the people there like what you design, the whole country will like it,” he said.
