Gov’t encourages Taiwan firms to return from China
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.
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.