China Urges Taiwanese Companies: Taiwanese companies are facing increasing scrutiny, both from China and within their own political landscape, as the delicate cross-strait relations come into focus. Amid investigations into major Apple supplier Foxconn, there’s a growing debate on the role these companies should play in promoting peaceful relations across the Taiwan Strait.
The Chinese government’s tax and land use inquiries into Foxconn’s operations have raised concerns in Taiwan, with accusations of Chinese interference in Taiwan’s upcoming presidential elections and undue pressure on Taiwanese corporations heavily invested in China.
While China has not officially confirmed the investigations, it insists on its right to investigate companies operating within its borders. The Chinese government claims Taiwan as a part of its territory.
China’s Taiwan Affairs Office spokesperson, Zhu Fenglian, emphasized that mainland departments treat all enterprises equally in line with the law, framing the investigations as standard law enforcement procedures. She reiterated China’s commitment to supporting Taiwanese businesses and creating a favorable environment for their growth.
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However, Zhu also implied that Chinese authorities expect Taiwanese companies to take on a more significant political role. She urged these companies to embrace social responsibilities and promote peaceful cross-strait relations without providing specific details on what this entails.
The situation has been further complicated by Taiwan’s Vice President, Lai Ching-te, who is the Democratic Progressive Party’s (DPP) candidate for the upcoming presidential elections. Lai, who is leading in the polls, accused China of applying pressure on Taiwanese firms during the election season and called on Beijing to cherish these companies.
China, in turn, views Lai as a separatist advocating for formal independence from China, and the government in Beijing has consistently rejected his calls for dialogue. Zhu criticized Lai’s stance, accusing him of trying to “use weapons to seek independence” while also promoting dialogue, dubbing him a “Taiwan independence liar.”
As these tensions unfold, Foxconn shares experienced fluctuations, highlighting the economic and political intricacies at play in the region. The evolving dynamics between China and Taiwan’s corporate landscape will continue to influence regional politics and business dealings.
Our Reader’s Queries
Why does China think Taiwan owns?
In 1945, the Republic of China regained control of Taiwan from Japan. However, in 1949, the government fled to Taiwan with the intention of reclaiming mainland China. To this day, both the ROC and the PRC claim mainland China and Taiwan as part of their territories according to their constitutions.
Does China do business with Taiwan?
Taiwan has emerged as a major investor in China, with a whopping 45,195 approved investment cases totaling US$203.33 billion between 1991 and December 2022. The value of cross-strait trade in 2022 alone was US$205.11 billion, highlighting the strong economic ties between the two nations.
Do Taiwan citizens pay taxes to China?
Contrary to popular belief, China does not impose taxes on Taiwan. Despite China’s claim of sovereignty over Taiwan, the latter operates independently with its own government and tax system. Taiwan functions as a self-governing entity with its own tax policies and administration.
What is Taiwan’s biggest company?
The top Taiwanese companies by market capitalization include 1TSMC, 2MediaTek, 3Foxconn (Hon Hai Precision Industry), and 4Chunghwa Telecom. There are 57 other companies on the list as well. These companies have proven to be successful in their respective industries and have gained significant market value.