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Straits Times
6 hours ago
- Business
- Straits Times
Taiwan's entrepreneurs in China feel heat from cross-Strait tensions
Kunshan, China - Bustling Taipei-style shopping streets, majestic temples to the island's deities and thriving factories dot the eastern Chinese city of Kunshan, for years a hub for Taiwanese businesses. But now those firms are feeling the strain from cross-Strait tensions that have stoked safety fears among companies. Taiwanese entrepreneurs – known as 'Taishang' in Mandarin – poured billions into mainland China since ties began improving in the 1990s, playing an important role in its rise to become the world's second-largest economy. But their numbers have dwindled in recent years, with the number of Taiwanese working in China dropping from 409,000 in 2009 to 177,000 in 2022, according to estimates provided to AFP by the Straits Exchange Foundation, an unofficial intermediary between Taipei and Beijing. China's economic slowdown and mounting trade tensions with Washington are partially responsible, the organisation says. But Mr James Lee, a 78-year-old Taiwanese industrialist who was forced to close his cable and electrical outlet factory in southern Guangdong province in 2022, blames 'politics'. 'You have to be very careful when you speak,' he told AFP. 'We Taiwanese businessmen are afraid.' Bolstered by their mastery of Mandarin and business acumen, Taishang have prospered as wily intermediaries between international markets and China's vast industrial manufacturing base. Perhaps the most famous of them is Mr Terry Gou, the founder of Foxconn whose vast factories in China churn out iPhones that have helped make it the world's biggest contract electronics manufacturer. No guarantee of safety An hour's drive from economic powerhouse Shanghai, Kunshan has been a key hub for Taiwanese-owned industry in China since the 1990s. 'Back then, it was a rice field,' recalls Ms Annie Wang, an industrialist from the island who arrived in Kunshan in 1996. 'Taiwanese companies were fortunate to coincide with the 30 most glorious years of Chinese manufacturing,' she said. Now, Ms Wang heads an electronics subcontracting manufacturing plant, a small technology park and a coffee utensil brand. At the height of the boom, Kunshan was home to more than 100,000 Taiwanese, according to unofficial figures from local associations. But the number of Taiwanese companies in the city has shrunk from more than 10,000 a decade ago to fewer than 5,000 today, according to the data. And the Taishang have felt the squeeze as relations between Taipei and Beijing plunge to their lowest depths in years. The Chinese Communist Party – which claims Taiwan as its territory but has never controlled it – has hardened its stance against alleged 'Taiwanese independence activists', even calling for the death penalty for alleged secessionism. New rules, which also encourage citizens to report alleged pro-independence activities, have had a chilling effect on Taiwanese businesses in mainland China. 'We are not sending Taiwanese employees (to China) because we don't know how to guarantee their safety,' said industrialist Lee. 'The initial favourable conditions have disappeared, and now there are many additional risks,' Mr Luo Wen-jia, vice-chairman of the Straits Exchange Foundation, told AFP. China's economic woes and rising production costs are adding to the problems. 'When we first went there, we thought that China's economy would continue to improve because its market is so large and its population is so big,' Mr Leon Chen, a Taiwanese businessman who worked at a battery component factory in the south-eastern province of Jiangxi, said. 'But we haven't seen this materialise because there are some issues – there is the US-China trade war and there was the pandemic,' he added. Caught in crossfire In response, Taiwanese manufacturers are turning to new, more profitable – and less politically sensitive – locales. 'Some went to Vietnam, and some went to Thailand, Indonesia and the Philippines, and some returned to Taiwan,' Mr Luo said. Between 2016 and 2024, Taiwanese investments in Vietnam approved by the Ministry of Economic Affairs in Taipei soared 129 per cent, from US$451 million (S$580 million) to more than US$1 billion. Over the same period, those to mainland China fell 62 per cent, according to the same source. This decline could deal a blow to Beijing's 'united front' strategy, which has seen it lean on Taishang communities to promote Taiwan's political integration and, ultimately, unification. And as Beijing launches military drills practising a blockade of Taiwan and Taipei cracks down on Chinese spies, Taishang risk being caught in the crossfire. In October 2023, Foxconn was placed under investigation by the Chinese authorities – a move widely seen as linked to a bid for the Taiwan presidency by its founder. 'There is no way to compare it with the heyday but we can still make ends meet,' said Mr Chen. 'If the environment for doing business in China becomes worse and worse, we would have no choice but to leave.' AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
The Sun
7 hours ago
- Business
- The Sun
Taiwan's entrepreneurs in China feel heat from cross-Strait tensions
KUNSHAN: Bustling Taipei-style shopping streets, majestic temples to the island's deities and thriving factories dot the eastern Chinese city of Kunshan, for years a hub for Taiwanese businesses. But now those firms are feeling the strain from cross-Strait tensions that have stoked safety fears among companies. Taiwanese entrepreneurs -- known as 'Taishang' in Mandarin -- poured billions into mainland China since ties began improving in the 1990s, playing an important role in its rise to become the world's second-largest economy. But their numbers have dwindled in recent years, with the number of Taiwanese working in China dropping from 409,000 in 2009 to 177,000 in 2022, according to estimates provided to AFP by the Straits Exchange Foundation, an unofficial intermediary between Taipei and Beijing. China's economic slowdown and mounting trade tensions with Washington are partially responsible, the organisation says. But James Lee, a 78-year-old Taiwanese industrialist who was forced to close his cable and electrical outlet factory in southern Guangdong province in 2022, blames 'politics'. 'You have to be very careful when you speak,' Lee told AFP. 'We Taiwanese businessmen are afraid.' Bolstered by their mastery of Mandarin and business acumen, Taishang have prospered as wily intermediaries between international markets and China's vast industrial manufacturing base. Perhaps the most famous of them is Terry Gou, the founder of Foxconn whose vast factories in China churn out iPhones that have helped make it the world's biggest contract electronics manufacturer. No guarantee of safety An hour's drive from economic powerhouse Shanghai, Kunshan has been a key hub for Taiwanese-owned industry in China since the 1990s. 'Back then, it was a rice field,' recalls Annie Wang, an industrialist from the island who arrived in Kunshan in 1996. 'Taiwanese companies were fortunate to coincide with the 30 most glorious years of Chinese manufacturing,' she said. Now, Wang heads an electronics subcontracting manufacturing plant, a small technology park and a coffee utensil brand. At the height of the boom, Kunshan was home to more than 100,000 Taiwanese, according to unofficial figures from local associations. But the number of Taiwanese companies in the city has shrunk from more than 10,000 a decade ago to fewer than 5,000 today, according to the data. And the Taishang have felt the squeeze as relations between Taipei and Beijing plunge to their lowest depths in years. The Chinese Communist Party -- which claims Taiwan as its territory but has never controlled it -- has hardened its stance against alleged 'Taiwanese independence activists', even calling for the death penalty for alleged secessionism. New rules, which also encourage citizens to report alleged pro-independence activities, have had a chilling effect on Taiwanese businesses in mainland China. 'We are not sending Taiwanese employees (to China) because we don't know how to guarantee their safety,' said industrialist Lee. 'The initial favourable conditions have disappeared, and now there are many additional risks,' Luo Wen-jia, vice chairman of the Straits Exchange Foundation, told AFP. China's economic woes and rising production costs are adding to the problems. 'When we first went there, we thought that China's economy would continue to improve because its market is so large and its population is so big,' Leon Chen, a Taiwanese businessman who worked at a battery component factory in the southeastern province of Jiangxi, said. 'But we haven't seen this materialise because there are some issues -- there is the US-China trade war and there was the pandemic,' he added. Caught in crossfire In response, Taiwanese manufacturers are turning to new, more profitable -- and less politically sensitive -- locales. 'Some went to Vietnam, and some went to Thailand, Indonesia and the Philippines, and some returned to Taiwan,' Luo said. Between 2016 and 2024, Taiwanese investments in Vietnam approved by the Ministry of Economic Affairs in Taipei soared 129 percent, from US$451 million to more than US$1 billion. Over the same period, those to mainland China fell 62 percent, according to the same source. This decline could deal a blow to Beijing's 'united front' strategy, which has seen it lean on Taishang communities to promote Taiwan's political integration and, ultimately, unification. And as Beijing launches military drills practising a blockade of Taiwan and Taipei cracks down on Chinese spies, Taishang risk being caught in the crossfire. In October 2023, Foxconn was placed under investigation by Chinese authorities -- a move widely seen as linked to a bid for the Taiwan presidency by its founder. 'There is no way to compare it with the heyday but we can still make ends meet,' said Chen. 'If the environment for doing business in China becomes worse and worse, we would have no choice but to leave.'
France 24
10 hours ago
- Business
- France 24
Taiwan's entrepreneurs in China feel heat from cross-Strait tensions
But now those firms are feeling the strain from cross-Strait tensions that have stoked safety fears among companies. Taiwanese entrepreneurs -- known as "Taishang" in Mandarin -- poured billions into mainland China since ties began improving in the 1990s, playing an important role in its rise to become the world's second-largest economy. But their numbers have dwindled in recent years, with the number of Taiwanese working in China dropping from 409,000 in 2009 to 177,000 in 2022, according to estimates provided to AFP by the Straits Exchange Foundation, an unofficial intermediary between Taipei and Beijing. China's economic slowdown and mounting trade tensions with Washington are partially responsible, the organisation says. But James Lee, a 78-year-old Taiwanese industrialist who was forced to close his cable and electrical outlet factory in southern Guangdong province in 2022, blames "politics". "You have to be very careful when you speak," Lee told AFP. "We Taiwanese businessmen are afraid." Bolstered by their mastery of Mandarin and business acumen, Taishang have prospered as wily intermediaries between international markets and China's vast industrial manufacturing base. Perhaps the most famous of them is Terry Gou, the founder of Foxconn whose vast factories in China churn out iPhones that have helped make it the world's biggest contract electronics manufacturer. No guarantee of safety An hour's drive from economic powerhouse Shanghai, Kunshan has been a key hub for Taiwanese-owned industry in China since the 1990s. "Back then, it was a rice field," recalls Annie Wang, an industrialist from the island who arrived in Kunshan in 1996. "Taiwanese companies were fortunate to coincide with the 30 most glorious years of Chinese manufacturing," she said. Now, Wang heads an electronics subcontracting manufacturing plant, a small technology park and a coffee utensil brand. At the height of the boom, Kunshan was home to more than 100,000 Taiwanese, according to unofficial figures from local associations. But the number of Taiwanese companies in the city has shrunk from more than 10,000 a decade ago to fewer than 5,000 today, according to the data. And the Taishang have felt the squeeze as relations between Taipei and Beijing plunge to their lowest depths in years. The Chinese Communist Party -- which claims Taiwan as its territory but has never controlled it -- has hardened its stance against alleged "Taiwanese independence activists", even calling for the death penalty for alleged secessionism. New rules, which also encourage citizens to report alleged pro-independence activities, have had a chilling effect on Taiwanese businesses in mainland China. "We are not sending Taiwanese employees (to China) because we don't know how to guarantee their safety," said industrialist Lee. "The initial favourable conditions have disappeared, and now there are many additional risks," Luo Wen-jia, vice chairman of the Straits Exchange Foundation, told AFP. China's economic woes and rising production costs are adding to the problems. "When we first went there, we thought that China's economy would continue to improve because its market is so large and its population is so big," Leon Chen, a Taiwanese businessman who worked at a battery component factory in the southeastern province of Jiangxi, said. "But we haven't seen this materialise because there are some issues -- there is the US-China trade war and there was the pandemic," he added. Caught in crossfire In response, Taiwanese manufacturers are turning to new, more profitable -- and less politically sensitive -- locales. "Some went to Vietnam, and some went to Thailand, Indonesia and the Philippines, and some returned to Taiwan," Luo said. Between 2016 and 2024, Taiwanese investments in Vietnam approved by the Ministry of Economic Affairs in Taipei soared 129 percent, from US$451 million to more than US$1 billion. Over the same period, those to mainland China fell 62 percent, according to the same source. This decline could deal a blow to Beijing's "united front" strategy, which has seen it lean on Taishang communities to promote Taiwan's political integration and, ultimately, unification. And as Beijing launches military drills practising a blockade of Taiwan and Taipei cracks down on Chinese spies, Taishang risk being caught in the crossfire. In October 2023, Foxconn was placed under investigation by Chinese authorities -- a move widely seen as linked to a bid for the Taiwan presidency by its founder. "There is no way to compare it with the heyday but we can still make ends meet," said Chen. © 2025 AFP
Int'l Business Times
10 hours ago
- Business
- Int'l Business Times
Taiwan's Entrepreneurs In China Feel Heat From Cross-Strait Tensions
Bustling Taipei-style shopping streets, majestic temples to the island's deities and thriving factories dot the eastern Chinese city of Kunshan, for years a hub for Taiwanese businesses. But now those firms are feeling the strain from cross-Strait tensions that have stoked safety fears among companies. Taiwanese entrepreneurs -- known as "Taishang" in Mandarin -- poured billions into mainland China since ties began improving in the 1990s, playing an important role in its rise to become the world's second-largest economy. But their numbers have dwindled in recent years, with the number of Taiwanese working in China dropping from 409,000 in 2009 to 177,000 in 2022, according to estimates provided to AFP by the Straits Exchange Foundation, an unofficial intermediary between Taipei and Beijing. China's economic slowdown and mounting trade tensions with Washington are partially responsible, the organisation says. But James Lee, a 78-year-old Taiwanese industrialist who was forced to close his cable and electrical outlet factory in southern Guangdong province in 2022, blames "politics". "You have to be very careful when you speak," Lee told AFP. "We Taiwanese businessmen are afraid." Bolstered by their mastery of Mandarin and business acumen, Taishang have prospered as wily intermediaries between international markets and China's vast industrial manufacturing base. Perhaps the most famous of them is Terry Gou, the founder of Foxconn whose vast factories in China churn out iPhones that have helped make it the world's biggest contract electronics manufacturer. An hour's drive from economic powerhouse Shanghai, Kunshan has been a key hub for Taiwanese-owned industry in China since the 1990s. "Back then, it was a rice field," recalls Annie Wang, an industrialist from the island who arrived in Kunshan in 1996. "Taiwanese companies were fortunate to coincide with the 30 most glorious years of Chinese manufacturing," she said. Now, Wang heads an electronics subcontracting manufacturing plant, a small technology park and a coffee utensil brand. At the height of the boom, Kunshan was home to more than 100,000 Taiwanese, according to unofficial figures from local associations. But the number of Taiwanese companies in the city has shrunk from more than 10,000 a decade ago to fewer than 5,000 today, according to the data. And the Taishang have felt the squeeze as relations between Taipei and Beijing plunge to their lowest depths in years. The Chinese Communist Party -- which claims Taiwan as its territory but has never controlled it -- has hardened its stance against alleged "Taiwanese independence activists", even calling for the death penalty for alleged secessionism. New rules, which also encourage citizens to report alleged pro-independence activities, have had a chilling effect on Taiwanese businesses in mainland China. "We are not sending Taiwanese employees (to China) because we don't know how to guarantee their safety," said industrialist Lee. "The initial favourable conditions have disappeared, and now there are many additional risks," Luo Wen-jia, vice chairman of the Straits Exchange Foundation, told AFP. China's economic woes and rising production costs are adding to the problems. "When we first went there, we thought that China's economy would continue to improve because its market is so large and its population is so big," Leon Chen, a Taiwanese businessman who worked at a battery component factory in the southeastern province of Jiangxi, said. "But we haven't seen this materialise because there are some issues -- there is the US-China trade war and there was the pandemic," he added. In response, Taiwanese manufacturers are turning to new, more profitable -- and less politically sensitive -- locales. "Some went to Vietnam, and some went to Thailand, Indonesia and the Philippines, and some returned to Taiwan," Luo said. Between 2016 and 2024, Taiwanese investments in Vietnam approved by the Ministry of Economic Affairs in Taipei soared 129 percent, from US$451 million to more than US$1 billion. Over the same period, those to mainland China fell 62 percent, according to the same source. This decline could deal a blow to Beijing's "united front" strategy, which has seen it lean on Taishang communities to promote Taiwan's political integration and, ultimately, unification. And as Beijing launches military drills practising a blockade of Taiwan and Taipei cracks down on Chinese spies, Taishang risk being caught in the crossfire. In October 2023, Foxconn was placed under investigation by Chinese authorities -- a move widely seen as linked to a bid for the Taiwan presidency by its founder. "There is no way to compare it with the heyday but we can still make ends meet," said Chen. "If the environment for doing business in China becomes worse and worse, we would have no choice but to leave." Taiwanese-style buildings, streets and temples to deieties can be seen throughout Kunshan AFP Between 2016 and 2024 Taiwanese investment into mainland China fell more than 60 percent, figures from the Ministry of Economic Affairs in Taipei show AFP Kunshan has been a key hub for Taiwanese-owned industry in China since the 1990s AFP
Time of India
08-06-2025
- Politics
- Time of India
Taiwan: SEF chairman slams China's 'united front' tactics, calls for sincerity in cross-Strait relations
Straits Exchange Foundation Chairman Frank Wu has called on China to cease its "united front" operations, which are perceived as attempts to infiltrate and divide Taiwan. Wu highlighted the contradiction between Beijing's desire for peaceful relations and its ongoing military activities around the island. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Straits Exchange Foundation (SEF) Chairman Frank Wu urged China to abandon its controversial "united front" operations, saying that such tactics, alongside political interference and military provocations , only provoke resentment among the Taiwanese at the seventh SEF board meeting held in Taipei on Friday, Wu emphasised that "United front" is a commonplace phrase in China; however, people of Taiwan consider it swear words, as it stands for Beijing's efforts to infiltrate and sow division in their persistent tensions, Wu pointed to a rare point of agreement between leaders in Taipei and Beijing, the mutual desire for the peaceful development of cross-Strait relations . He said China can either bring peace and improve lives across the Strait by complying with this agreement, or earn the mockery of history and prove the hollowness of its words by not acting on this said, "For many years, our opposite number insisted that the peoples across the Strait share the same racial origins and language in hopes that Taiwanese would join the symphony of the Chinese family."He condemned China's ongoing deployment of military aircraft and naval vessels around Taiwan. Wu said, "This song is very much lost amid the ceaseless political infiltration [of Taiwan] and the deafening din of [Chinese] warships and jets."He stated that people of Taiwan would not accept this "deviation between [China's] words and actions." Referencing Taiwan President Lai Ching-te consistent call for peaceful dialogue since his May 2024 inauguration, Wu warned that lasting peace is impossible without sincere mutual further urged China's Association for Relations Across the Taiwan Straits to abandon "ancient grudges borne by long-dead men" and focus on benefiting the to Taipei Times, Wu concluded by urging China to find optimism in Taiwan's achievements rather than viewing them as threats.
