A growing number of Taiwanese companies operating in the People's Republic, called Taishang in Chinese, have suffered operational losses. This is revealed by a study conducted by the Taiwan Electrical and Electronic Manufacturers' Association (Teema). The percentage of companies affected by losses rose to 25,6% from 18% in 2008, while profits fell to 5,3% from 11,6% six years ago.
The project manager of the report, Professor Leu Horng-der of Chung Yuan Christian University, said Taiwanese investors are battling an increasingly challenging business environment in China. Beijing's economy has been experiencing structural adjustments since President Jinping and Premier Li Keqiang consolidated their leadership. The yuan has since been devalued, and the expansion of financial services into cyberspace has exposed the financial sector to increasing security threats.
All these elements, explains Leu Horng-der, played against the Taishangs. Teema's data highlights how the Chinese slowdown, rising labor costs, competition from Chinese companies and gray areas in laws and regulations have also weighed on the performance of Taiwanese companies in China.
Attachments: China Post
