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| moreAboutTaiwan Current Affairs |
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| Keeping Party Line, Bottom Line Separate (cont'd) July 28, 2004; LA Times All across China, government-operated news services run stories quoting regional officials boasting about the rate of Taiwanese investment � while they quietly lobby Beijing to ease its hard-line stance on Taiwan. And despite China's nagging electricity shortage this summer, provinces with high concentrations of Taiwanese investors are being given priority access to power. In a nod to the mainland's burgeoning film industry, Taiwan may lift a long-standing ban and allow Chinese productions to film on the island. "The ebb and flow of the political rhetoric has always overshadowed cross-strait business, but provincial officials are always happy to have Taiwan's business, with its taxes, employment and other kinds of money flow," said Richard R. Vuylsteke, executive director of the American Chamber of Commerce in Taiwan. "As for the entrepreneurs, they're looking out for the bottom line, not drawing political lines." Still, many Taiwanese entrepreneurs say investing in China remains risky. They worry about the stability of the Chinese currency, the yuan, and Beijing's attempts to slow the nation's overheated economy. With no official political ties or embassy in China, they have little recourse in instances of fraud or crime. A Taiwanese trade group called for improvements in China's public safety and what it called the nation's shoddy judicial system after the reported slaying of four Taiwanese by mainland gangsters last year. But Chinese authorities don't necessarily want the Taiwanese to get too comfortable. They can easily be replaced, as entrepreneurs from other countries � from the United States and South Korea, to name two � line up to do business. Analysts point to Chinese university studies showing that the health of Taiwan's economy has become reliant on the flow of business with China. The mainland's exports to Taiwan account for only a third of the traffic going the other way, they say. "These people are making a lot of money here, while many support the cause of Taiwan independence, which could hurt China," said Fan Ying, a trade expert at the Foreign Studies University in Beijing. "In terms of the economy, China doesn't need Taiwan as much as they need us. If such talk of independence continues, economic sanctions are a possible strategy the Chinese could take." In a recent survey of Taiwan's residents, 60% said their economy would suffer if China imposed sanctions on island entrepreneurs. A similar proportion said the chances of China invading Taiwan would diminish as cross-strait business boomed. In a statement released this month, Taiwan's Mainland Affairs Council emphasized that such sanctions "would only do harm to both sides." Taiwanese entrepreneurs hope that their investments will help defuse tensions. Meanwhile, they'll not only keep a close eye on profit margins but also watch out for political trouble. "You do your business and you don't talk politics," Chang said. "The higher your profile, the better the chance that problems will come looking for you." |
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