Taiwanese Investment In Mainland China Relaxed At The End Of June

"Westward" into a Taiwan funded enterprise consensus

In the past few years, Taiwan has been able to look at Hongkong, Korea and Singapore, which were once the four Asian dragons, but now it is planning to recover the lost time.

Yesterday, Zhang Fumei, President of the Shanghai Association for friendship and friendship promotion, told reporters: "before the end of June, Taiwan businessmen's investment in mainland China will be greatly relaxed."

Zhang Fumei's other status is Ma Ying-Jeou's backup member.

Like him, many Taiwan enterprises have regarded the "westward" mainland as the only way out of the depressed economy.

Taiwan businessmen plan to increase capital and expand production

In the last few days, sending business cards has become a tedious but happy job for many Taiwanese businessmen.

"At last there is no need to sneak."

Speaking of the days after "5. 20", a Taiwan boss said that the first thing he did was to formally introduce himself to his old friends who had been working together for many years.

Previously, Taiwan enterprises should not invest more than 40% of their net assets to the mainland, and strictly limit the export of sensitive technologies.

Therefore, in the past few years, like many Taiwanese businessmen doing business in the mainland, he has to be secretive about his identity.

In fact, in recent Zhang Rongfa, Terry Gou, Wang Yongqing and Zhang Zhongmou and other Taiwan business giants and Ma Ying-Jeou frequent "political and economic interaction", it is easy to see the urgency of Taiwan enterprises.

TSMC, which has set up factories in Songjiang, Shanghai, is gradually increasing its investment in the mainland.

In addition to investment restrictions, the relaxation of technical restrictions is equally significant.

"We expect technology restrictions to be further liberalized."

TSMC spokesman Ceng Jinhao said.

Semiconductor is a pillar industry in Taiwan. Due to concerns about technology outflow, Taiwan now allows only 8 inch wafers to "go ashore", and this technology is lagging behind for the world's largest integrated circuit manufacturing service company.

Taiwanese businessmen are delaying business opportunities due to investment restrictions

In fact, over the past few years, investment restrictions have led Taiwanese businessmen to lose business opportunities in developing the mainland market.

Taiwan's chip industry is second to none in the world, but the mainland is far behind its competitors.

There are also flat panel displays and petrochemical industries.

At present, Taiwanese businessmen mostly take the form of fundraising in Hongkong to reduce the shares held by Taiwan parent companies to mainland enterprises so as to avoid investment restrictions.

For example, the Hon Hai group listed on Foxconn in Taiwan. Baocheng, the largest footwear manufacturer in Taiwan, landed on the Shanghai stock exchange through its subsidiary Yuyuan business.

Wu Xianghong, an economist at JP Morgan in Hongkong, said the restriction only made the economic connection a one-way street, but "it did not dispel the idea of Taiwan enterprises investing in the mainland, but prompted Taiwan enterprises to return their profits to Taiwan because they were worried that they could not use these funds to expand further in the mainland".

An extreme case is that Zhang Rujing, chairman of SMIC, gave up Taiwan's household registration because he was dissatisfied with the Taiwan authorities' restrictions on investment in the mainland.

The restrictions will be further relaxed.

Zhang Fumei believes that Taiwanese businessmen 'enthusiasm for mainland China is not difficult to understand.

"Taiwan is an island. It must be open to meet the challenges of globalization."

Zhang Fumei said that although the restrictions were not completely lifted, the loosening of investment on the mainland would solve the "legitimacy" problem of Taiwan businessmen's "westward advance".

"In the future, the restrictions will be further relaxed."

He expects Taiwanese investment to increase by 30%.

Taiwan will also benefit from it.

The second quarter world economic survey released by IFO, the famous German forecasting agency, showed that the stock price level rose to 8.6 points, close to the highest point of 9 points after Taiwan's election.

On the day of Ma Ying-Jeou's election, Taiwan's stock market rose by 4%.

Now the Taiwan business community is committed to promoting more economic and trade cooperation between the two sides.

"Enterprises hope that there is a further understanding between the two sides of the tax law to avoid taxation in both places, and direct shipping is also a very important issue."

Zhang Fumei said.

Once the two sides are direct, the time for Taipei to fly to Fuzhou is even shorter than that of Taipei from high speed rail to Kaohsiung. The new route will also become a new link between the two sides of the Straits.