Mainland China steps up efforts to woo Taiwanese investors despite cross-strait tensions, but why aren’t more listening?
- Mainland China is seeking to further integrate with Taiwan economically despite ongoing cross-strait tensions
- Taiwanese investments approved for mainland China, a historic destination for the island’s export manufacturing sector, fell to a 22-year-low in 2023
A city in the eastern province of Zhejiang has become the latest mainland China locale to court Taiwanese investors, despite heightened cross-strait tensions, but analysts said Beijing’s efforts are only having an impact on firms with existing relationships.
Shaoxing’s four-day networking event attracted 100 Taiwanese businesspeople with interest in the local software sector. Many had existing assets in mainland China, such as factories, and had hopes to expand.
Its gambit marked the latest effort at integrating Taiwan economically with mainland China.
“Zhejiang has a strong economic history and a demand for tech stuff, which helps Taiwanese companies, owing to support from the local government,” said Darson Chiu, a fellow with the Taiwan Institute of Economic Research.
But the forums, tax breaks, cuts in red tape and land discounts offered by governments in parts of mainland China are still not enough to attract Taiwanese companies to invest if they are not already in the market, industry analysts and a trade group official said.
Mainland Chinese officials are expected to step up their efforts this year to attract investment, with a focus on integrating the two sides that stand at odds politically.
