Taiwan firms optimistic on China’s economy

ENTERPRISES from the Taiwan region are optimistic about the economic development of the Chinese mainland and pledge to continue investing to better take advantage of the economic recovery in 2024, representatives of business and industry groups from the island told the Global Times on Monday.

The representatives also stressed their strong expectations for the mainland and the Taiwan region to continue to uphold the 1992 Consensus, opposing secessionism while maintaining peaceful and steady relations and cooperation across the Taiwan Straits.

The remarks came on the sidelines of the annual two sessions, during which the Government Work Report will be released, outlining the development direction of the world’s second-largest economy and setting economic and policy goals for 2024.

On this special occasion, businesses from the Taiwan region are embracing the mainland market, calling for peaceful and integrated development across the Straits with more interaction and cooperation.

The mainland’s active efforts on promoting infrastructure development nationwide in recent years, with new roads being built and subway systems being launched, reflected the determination of the central and local governments in boosting the economy, Lai Cheng-i, chairman of the General Chamber of Commerce of the Taiwan island, told the Global Times on Monday.

Despite facing challenges such as China-US trade tensions, the lingering impact from the Covid-19 pandemic and the Russia-Ukraine conflict, the mainland’s economy still achieved a remarkable growth rate of 5.2 percent in 2023. This growth rate significantly surpassed that of other major economies worldwide including the United States at 2.5 percent, the European Union at 0.5 percent, the United Kimgdom at 0.1 percent and Japan at 1.9 percent.

The mainland’s gross domestic product growth also far exceeded the 1.31-percent rate of the Taiwan region.

Business representatives of the Taiwan region said that this economic achievement is commendable and it reaffirms the nation’s position as the primary engine driving global economic growth.

“Despite the tough international situation in 2023, the mainland’s economic growth remained strong, backed up by the government’s efforts and consumption recovery, and I am confident that this trend will continue in 2024,” Lai said.

Local governments are constantly improving policies and measures to promote the integrated development of their regions and Taiwan, which have brought significant benefits to businesspeople from the island. It’s also made more companies, including those headed by young entrepreneurs, more willing to develop and invest in the mainland, the chamber head said.

There are strong expectations for more trade to take place on both sides.

The first shipment of 23.96 tons of grouper fish from the island of Taiwan arrived in Xiamen, Fujian province, on January 11, marking the formal resumption of related trade after the mainland customs lifted the ban on imports in late December, according to media reports.

Lai expects that there will be more farm and fishery products exported to the mainland.

Moreover, there are expectations for more tourism activities to be promoted across the Straits.

Speaking about the new potential for cooperation, Teng Tai-Hsien, secretary-general of the Straits Economic and Cultural Interchange Association, gives the examples of the mainland’s continuous adjustment of its economic structure in moving in the direction of low-carbon consumption, high automation and digitalization, and companies from the island love to take part in the industrial transformation.

Opportunities have emerged in the vast domestic market ranging from the health care industry, spurred by an aging population, to modern agriculture and education, Teng said, noting that “businesses of the island of Taiwan should seize the opportunity presented by the mainland’s economic transformation and upgrading.”

Businesses of the Taiwan island remain optimistic about investing in the mainland this year as the mainland’s economy is expected to continue its steady growth trajectory.

In 2023, the Taiwan region approved 328 cases of direct investment in the mainland totaling $3.04 billion. Teng said that 71.23 percent of listed companies in Taiwan had invested in business operations in the mainland.

“After these enterprises generate profits in the mainland, they often intend to reinvest. I believe that the scope of investment will expand this year,”Teng said.