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Taiwan's entrepreneurs in China feel heat from cross-Strait tensions

  • In October 2023, Chinese officials launched an investigation into Foxconn amid escalating cross-Strait tensions impacting Taiwanese companies operating in China.
  • This event follows growing political pressures including Beijing's military drills and new rules targeting pro-independence activity that have increased risks for Taiwanese firms.
  • Kunshan, once home to over 10,000 Taiwanese companies and 100,000 Taiwanese workers, now hosts fewer firms and fewer Taiwanese employees due to economic and political challenges.
  • From 2016 to 2024, financial commitments by companies from Taiwan in mainland China declined by 62 percent, while funding directed toward Vietnam grew by 129 percent, indicating a deliberate shift in investment strategy amid ongoing uncertainties.
  • These trends imply Taiwanese entrepreneurs face mounting risks and may increasingly relocate businesses for safety and profitability as favorable conditions in China have diminished.
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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.

Kunshan - Temples of Gods venerated in Taiwan, typical shopping street and prosperous factories: in Kunshan (eastern China), the presence of Taiwanese investors remains marked, despite the departures due to trade war and inter-district tensions.

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Macau Business broke the news in on Tuesday, June 17, 2025.
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