Taiwanese companies investing in the mainland have not yet recovered from the blow of the Chinese Communist Party virus (Wuhan pneumonia), and some Taiwanese businessmen said that the performance of traditional industries and manufacturing industries has fallen by 60% to 70%, and companies have to lay off employees to tide over the difficulties, and some Taiwanese businessmen are pessimistic about the future.
The CCP virus has hit Taiwanese businessmen hard, especially those who rely on exports. In an interview with Radio Free Asia, Zhang Hanwen, honorary president of the National Taiwan Compatriots Investment Association, said with a sigh of relief that everyone is struggling and the plague is so serious that “everyone is not looking forward to it.
Zhang Hanwen said that the most affected by the epidemic is the traditional industry, manufacturing, the production of daily necessities, such as shoes, garments and this kind of the most seriously affected.
Speaking of his business, he said, “Now business is very bad, I (orders) dropped 60, 70 percent.” Had to lay off staff to tide over the difficulties, “laid off almost sixty, seventy percent!”
Taiwanese-funded restaurant chain a tea to sit in the mainland investment for more than twenty years, the peak had more than 120 stores, but recently broke the news of the closure of all directly managed stores, only eight franchises remain.
A tea a sit former CEO Lin Shengzhi said, as long as the encounter “people” industry “, during the plague are affected. Lin Shengzhi, for example, like the restaurant, retail, tourism, hotel and other service stores of the industry are very miserable. Many tourist areas were once left with only one-tenth or one-fifth of the crowd, and the restaurant industry, such as the tableware industry, food industry, etc., also suffered.
In the face of reduced overseas orders, some Taiwanese businesses want to transform the development of mainland sales, but face many difficulties.
Zhang Hanwen said: “We Taiwanese businessmen in the mainland are more foreign trade and less domestic demand, now to change the domestic market is very difficult, at once not so easy. In the end, the local people than we are more convenient in all aspects of operation, resources, Taiwan business domestic demand market previously would have lacked this piece of resources, you have to catch customers to time, to have the ability, to contacts, to access, in this above we are more disadvantaged.”
Not only the reason for the plague, due to geopolitical and other reasons also caused Taiwanese businessmen’s investment in the mainland to decline year by year.
Since 2015, annual investment flows from Taiwan to China have plummeted by more than 50 percent, Wind Media reported, citing an article in The Economist. Although the Chinese Communist Party authorities have introduced a variety of policies to attract investment from Taiwanese companies, they have had little effect.
According to the Economist article, there are three main reasons for the decline in Taiwanese business investment. The first is geopolitical factors. Taiwanese businesses have come to realize that the many preferential policies of the Communist Party of China (CPC) for Taiwanese businesses are merely an attempt to draw them in and prevent Taiwan from formally seeking independence, which, coupled with the imposition of tariffs by the United States on mainland products, has led many Taiwanese factories to move their production lines out of China.
According to a recent survey conducted by the National Federation of Industries of the Republic of China, 40% of Taiwanese entrepreneurs who set up factories in China have or will “transfer production capacity” to other countries, mainly to Southeast Asia.
The second is that Taiwanese businesses and mainland enterprises to compete “no advantage. Zhang Yingde, who owns a business in Shanghai, pointed out that even if Beijing proposes new policies, the “red supply chain” is still more favorable to Chinese bidders. Huang Shengzhao, president of the Ningbo Taiwanese Business Association, said that of the 300 Taiwanese factories in Ningbo, none have so far succeeded in winning large government bids.
In addition, the generation change of Taiwanese businessmen is also a reason for the decline in investment. At present, the cadres sent out by the initial Taiwanese investors have reached retirement age, and the younger generation of Taiwanese are less willing to take up expatriate jobs. One of the reasons why Taiwanese businessmen are cautious about making large investments in China is that the problem of “succession gap” is becoming more and more urgent.
Recent Comments