Taiwan’s Executive President Su Tseng-chang said Thursday (April 15) that the share of China as a destination for Taiwan’s investments has plummeted from 84 percent in 2010 to 33 percent by 2020.
Taiwan’s Central News Agency (CNA) reported that Su made the remarks after hearing a report from Taiwan’s National Development Council at its regular weekly cabinet meeting.
He said that after adjustments in recent years, Taiwan’s overseas investments are no longer concentrated in mainland China, but are more diversified, in line with the basic economic philosophy of “not putting all eggs in one basket”. He added that in the past, too many Taiwanese businesses chose to relocate to mainland China.
Su said that one of the key policies to achieve this goal is to attract these companies back to Taiwan, creating more jobs and added value while rebuilding the global supply chain.
According to Taiwan’s Executive Yuan website, the ROC government has implemented five major measures in recent years to attract Taiwanese businesses back to Taiwan, including meeting land needs; deploying the professional staff needed by companies; assisting with rapid financing and setting up a special tax window to provide legal advice on taxation.
Observers point out that the reasons leading to the return of Taiwanese businesses from China to Taiwan are also related to the rising cost of doing business in China. Most companies in China have seen their operating costs rise in varying degrees due to a declining workforce and last year’s epidemic.
When China opened up to foreign investment in the 1980s, Taiwanese companies were among the first foreign investors to contribute. By the end of 2020, there will be at least one million Taiwanese living in China, the vast majority of whom will be doing business.
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