The business environment in China is getting riskier for Taiwanese, the Mainland Affairs Council said, citing reports of fraud, unexpected tax audits and arbitrary land taxes.
Beijing and local governments in China have been unexpectedly revoking tax discounts and other incentives for Taiwanese, the council said, adding that some Taiwanese businesses have been ordered to pay as much as 200 million yuan (US$29.22 million) in back taxes and interest.
The council has published a list of 23 risks Taiwanese businesspeople operating in China face, the majority of which are related to government interference in investments and operations.
Beijing has been increasingly aggressive in its demands for Taiwanese operating in China to be outspoken about supporting its “one China” principle, the council said.
China’s Taiwan Affairs Office (TAO) has said numerous times that it “supports increased investment in ‘the mainland’ by Taiwanese, but also hopes Taiwanese will take greater responsibility in supporting the [so-called] ‘1992 consensus’ and opposing Taiwanese independence,” it said, citing the TAO.
The “1992 consensus” refers to a tacit understanding between the Chinese Nationalist Party (KMT) and Beijing that both sides of the Taiwan Strait acknowledge there is “one China,” with each side having its own interpretation of what “China” means. Former Mainland Affairs Council chairman Su Chi (蘇起) said in 2006 that he had made up the term in 2000.
About half of the disputes handled through the Cross-Strait Bilateral Investment Protection and Promotion Agreement are related to land rights, with the Chinese authorities often expropriating land for road construction or other public works, the council said.
Some Taiwanese businesspeople have been denied access to land they were formally promised, while others have been given only a portion of the land they were owed, and later had their business’ land expropriated by local governments, the council said.
Discounts for Taiwanese companies also frequently and unpredictably change in China, the council said, citing the Chinese National Energy Administration’s announcement in May that it would end subsidies for solar panel manufacturers.
The announcement had a major effect on Taiwanese factories that produce panels in China, including Nanke Changjing, which was forced to suspend its operations, the council said.
There are also many businesses that were forced to quit the Chinese market due to rising rent and labor costs, undercutting and counterfeiting by Chinese companies, and Beijing’s support for Chinese firms, it said.
A Taiwanese businessman who established a factory to produce robots in Dongguan fell victim to tunneling by his investors and was forced to file a lawsuit, it said.
Another who had established a health consultancy business and had signed a contract with a hospital had the contract canceled by the hospital’s management, forcing him to seek legal action, it added.
‘DENIAL DEFENSE’: The US would increase its military presence with uncrewed ships, and submarines, while boosting defense in the Indo-Pacific, a Pete Hegseth memo said The US is reorienting its military strategy to focus primarily on deterring a potential Chinese invasion of Taiwan, a memo signed by US Secretary of Defense Pete Hegseth showed. The memo also called on Taiwan to increase its defense spending. The document, known as the “Interim National Defense Strategic Guidance,” was distributed this month and detailed the national defense plans of US President Donald Trump’s administration, an article in the Washington Post said on Saturday. It outlines how the US can prepare for a potential war with China and defend itself from threats in the “near abroad,” including Greenland and the Panama
The Chinese Nationalist Party (KMT) is maintaining close ties with Beijing, the Democratic Progressive Party (DPP) said yesterday, hours after a new round of Chinese military drills in the Taiwan Strait began. Political parties in a democracy have a responsibility to be loyal to the nation and defend its sovereignty, DPP spokesman Justin Wu (吳崢) told a news conference in Taipei. His comments came hours after Beijing announced via Chinese state media that the Chinese People’s Liberation Army’s Eastern Theater Command was holding large-scale drills simulating a multi-pronged attack on Taiwan. Contrary to the KMT’s claims that it is staunchly anti-communist, KMT Deputy
RESPONSE: The government would investigate incidents of Taiwanese entertainers in China promoting CCP propaganda online in contravention of the law, the source said Taiwanese entertainers living in China who are found to have contravened cross-strait regulations or collaborated with the Chinese Communist Party (CCP) could be subject to fines, a source said on Sunday. Several Taiwanese entertainers have posted on the social media platform Sina Weibo saying that Taiwan “must be returned” to China, and sharing news articles from Chinese state media. In response, the Mainland Affairs Council (MAC) has asked the Ministry of Culture to investigate whether the entertainers had contravened any laws, and asked for them to be questioned upon their return to Taiwan, an official familiar with the matter said. To curb repeated
Myanmar has turned down an offer of assistance from Taiwanese search-and-rescue teams after a magnitude 7.7 earthquake struck the nation on Friday last week, saying other international aid is sufficient, the National Fire Agency said yesterday. More than 1,700 have been killed and 3,400 injured in the quake that struck near the central Myanmar city of Mandalay early on Friday afternoon, followed minutes later by a magnitude 6.7 aftershock. Worldwide, 13 international search-and-rescue teams have been deployed, with another 13 teams mobilizing, the agency said. Taiwan’s search-and-rescue teams were on standby, but have since been told to stand down, as