Pro-democracy businesses of Taiwan operating in mainland China are now finding it perilous to carry out business activities without inviting the wrath of the Chinese Communist Party (CCP). These companies will have to wind up their business operations in China or they must give up their support for the Tsai administration, and as a consequence, shun Taiwan’s sovereignty. China is weaponizing its ‘economic might’ to downsize independence seekers or what China loves to call the “secessionist forces” of Taiwan. Taiwanese companies, however, are not willing to compromise on their nation’s independence because of business interests in mainland China. So, they are leaving the mainland altogether!
There is always a black sheep in a family. Even in Taiwan’s stable of companies, there is one that has chosen China over Taiwanese sovereignty. But that is not our talking point. A majority of companies are choosing to abandon the Communist nation of China. A case in point is Taiwan’s ASE Group, which announced on Wednesday it will sell off four factories in China. According to a UDN report, the company plans to invest the profits from the sale to expand its presence in its home market.
Taiwan News reported that the company is all set to sell four factories, located in Weihai, Kunshan, Suzhou, and Shanghai, to Beijing-based Wise Road Capital. The estimated total value of the sale will be US$1.46 billion, of which ASE expects to make US$630 million in profit. Not only are Taiwanese companies selling off their assets and interests in the mainland, but are also earning profits out of the same. This would definitely not be auguring well with the Chinese Communist Party.
Over the past two years, China has tried every trick in its hat to intimidate Taiwan. Hilariously, it has failed to achieve its primal objective every time. Taiwan has learnt to deal with China. Taipei now turns every Chinese assault into an opportunity for itself. At the end of it all, China gets exposed for its aggression around the world, and Taiwan emerges as the beacon of democracy in a region that China wants to swallow whole.
Whether it be the constant threat of invasion, the airspace violations, vaccine blockades, international diplomacy aimed against Taipei or even China’s ban on Taiwanese pineapples and its lust to destroy Taiwan’s flourishing semiconductor industry – China has faced defeat on all counts, because Taiwan refuses to give up on its pragmatism and uses its democratic ethos and liberties to its advantage around the world.
China Threatens Companies from Taiwan
Late last month, China took to threatening Taiwanese companies. Zhu Fenglian, the spokesperson for the Taiwan Affairs Office, said, “We welcome Taiwan-based enterprises to invest and develop in the mainland and will continue to protect their legitimate rights and interests in accordance with the law. But we will never allow those that support Taiwan independence or damage cross-Straits relations to make money on the mainland.” She added, “They and their associated companies and financiers must be punished in accordance with the law.”
The warning came in after the CCP’s crackdown on major conglomerate Far Eastern Group for a range of violations. However, for ASE Group to leave China shows how it is unwilling to compromise on Taiwan’s independence and sovereignty. By abandoning China, the company has set the ball rolling for a mass exodus of Taiwanese companies out of China.