Taiwanese Investors in China in Trouble
TAIPEI, Taiwan–Most Taiwanese investors in China lost money in 2012, according to Tsai De-sheng, Director of the National Security Bureau in Taiwan. He said 30 percent of Taiwanese investors are facing bankruptcy, and another 30 percent are struggling. Tsai gave the figures during a session of the Taiwanese legislature’s Diplomacy and National Defense Committee meetings, according to the Taiwan-based United Daily News.
The Daily News also reported that China wants to have a bigger political influence in Taiwan. It reported that the National Security Bureau stated that China is dissatisfied that there is only economic exchange but no political exchange between the two. It wants to negotiate political changes with Taiwan, which it officially regards as a renegade province. Taiwan regards itself as a sovereign nation.
Democratic Progressive Party legislator Chiu Yi-ying asked Tsai why the Taiwanese government is silent about the risks of doing business with China, the United Daily News reported. She said the Ma Ying-Jiu administration and the Mainland Affairs Council promote investment in China, but she wondered why. “Does everything have to go back to Mainland China?”
Chiu said she thinks the government should speak about the risks of investing in China, instead of just the benefits. She said, “Our businessmen are faced with bankruptcy and even personal safety threats. We are unable to protect them,” the United Daily News reported.
She also described a concern more serious than an economic risk to investors. China has been adding missiles potentially to be used against Taiwan. The number grew from 1,400 to 1,600, according to the Daily News.
Tsai replied that the rate of missile buildup has slowed, but according to Chiu, a slower increase does not mean safety. She called on the National Security Bureau to get details about China’s missiles aimed at Taiwan, and release the information to the public.
P. K. Chiang, outgoing Chairman of the Straits Exchange Foundation, said that he has reminded Taiwanese businessmen that life in China depends on human relationships, according to the Daily News. Taiwanese businessmen need to be familiar with local laws and the investment environment. They need to be careful in order not to be taken advantage of.
Tsai said that everyone knows that investment in China is both a risk and an opportunity, but recently the risks have been worse.
Read the original Chinese article.
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