Gov’t en­cour­ages Tai­wan firms to re­turn from China

The China Post - - TAIWAN BUSINESS - BY JOHN LIU

Trans­parency and the rule of law are the mer­its of do­ing busi­ness in Tai­wan, and the gov­ern­ment aims to foster a busi­ness en­vi­ron­ment at­trac­tive to Tai­wanese firms op­er­at­ing over­seas, said Min­is­ter of Eco­nomic Af­fairs John Deng ( ) yesterday.

The re­mark was made amid ris­ing costs of con­duct­ing busi­ness in main­land China. Deng said the gov­ern­ment will also help Tai­wanese firms po­si­tion them­selves bet- ter in coun­tries around the world.

Deng made the state­ment at a Chi­nese and Tai­wanese busi­ness Duanwu fes­ti­val gath­er­ing con­fer­ence held at the Straits Ex­change Foun­da­tion ( SEF,

) , yesterday. About 300 Tai­wanese busi­ness­peo­ple at­tended the meet­ing.

The Eco­nom­ics Min­is­ter said in his open­ing ad­dress that the gov­ern­ment pays much at­ten­tion to how Tai­wanese firms op­er­ate in China, but also helps home­bound busi­nesses ex­plore op­por­tu­ni­ties in other coun­tries, and make in­vest­ments in de­vel­oped coun­tries like the U.S. and Ger­many as well as emerg­ing economies like Viet­nam and In­done­sia.

Among the mea­sures launched by the gov­ern­ment to as­sist lo­cal mer­chants this year is the “online ex­port mo­men­tum check.”

Re­turn­ing busi­nesses of­ten face the prob­lem of re­source scarcity, Deng said, adding that the gov­ern­ment has been ac­tive in re­triev­ing idle land, set­ting up the in­dus­trial spare land sys­tem, and es­tab­lish­ing an zone land data­base.

in­dus­trial

De­mer­its of Do­ing Busi­ness in China

Due to grow­ing wage lev­els and in­creas­ingly strin­gent en­vi­ron­men­tal and la­bor reg­u­la­tions, the costs of con­duct­ing busi­ness in China have shot up.

China re­cently pro­mul­gated a new for­eign in­vest­ment law, but its abil­ity to carry out the rule of law re­mains un­cer­tain, Deng said. Bei­jing may no longer of­fer tax as- sis­tance or pref­er­en­tial treat­ment in the fu­ture.

As China beefs up its “red sup­ply chain,” Tai­wanese firms should switch from the old price-cut­ting op­er­a­tion mode.

Land use and col­lec­tion is­sues made up the ma­jor­ity of dis­putes for Tai­wanese mer­chants con­duct­ing busi­ness in China in the past three years, ac­cord­ing to the Min­istry of Eco­nomic Af­fairs’ (MOEA,

) sta­tis­tics. Vi­vian Lien ( ), di­rec­tor gen­eral of the MOEA’s Depart­ment of In­vest­ment Ser­vices, said Tai­wanese firms abroad have al­ready pledged NT$40.4 bil­lion to Tai­wan-based projects, which was 76 per­cent of the gov­ern­ment’s tar­get for 2015.

The amount of home­bound in­vest­ment is much higher than last year’s fig­ure, and largely came from man­u­fac­tur­ing com­pa­nies, Lien said.

Straits Ex­change Foun­da­tion En­cour­ages China En­gage­ment

SEF Chair­man Lin Join- sane’s ( ) view varies some­what from the eco­nom­ics min­is­ter’s.

China’s “One Belt, One Road” ini­tia­tive cov­ers around 63 per­cent of the world’s pop­u­la­tion and ac­counts for ap­prox­i­mately 30 per­cent of global GDP. It is in­dica­tive of the area’s lack of de­vel­op­ment and need for in­fra­struc­ture in­vest­ment, Lin said, adding that it will bring many busi­ness op­por­tu­ni­ties. Tai­wan should cher­ish this op­por­tu­nity and not miss the band­wagon again, he cau­tioned.

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