China-based Taiwanese businesses urged to return to Taiwan

Vice President Chen Chien-jen (陳建仁), center, SEF Chairman Tien Hung-mao (田弘茂), second left, Kaohsiung Mayor Chen Chu (陳菊), first left, and Chang Hsiao-yueh (張小月), second right, head of Taiwan’s Cabinet-level Mainland Affairs Council, attend a seminar for China-based Taiwanese businessmen on Oct. 5, 2017. (CNA)

Taipei (CNA) – The Straits Exchange Foundation (SEF) on Thursday called on Taiwanese companies operating in China to think about bringing their investments back home.

At a seminar for China-based Taiwanese businessmen, SEF Chairman Tien Hung-mao (田弘茂) said that complementary businesses could be established on both sides of the Taiwan Strait.

Given that industries on both sides already have competitive but cooperative ties, Tien said, he hoped Taiwanese enterprises would seek ways of bringing their investments back to Taiwan.

China’s addiction to debt and its growing capital outflows are likely to create a property bubble and trigger a severe financial shock, he warned.

In such a situation, Taiwanese companies that are already encountering difficulties in the process of Chinese industrial transformation would face even greater problems, Tien said.

The SEF is a semi-official organization responsible for civilian exchanges with China in the absence of official ties.

Meanwhile, Chang Hsiao-yueh (張小月), head of Taiwan’s Cabinet-level Mainland Affairs Council that is responsible for China policy, said at the seminar that the government is working hard to address the shortages of water, electricity, land and labor, as well as taxation issues, which are seen as obstacles to Taiwanese businesses wanting to return from China.

By Miao Zong-han and Evelyn Kao