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Chapter 1104 The real reason

.Rongchang also had his own considerations when he chose to settle in the mainland. The most important point is that Taiwan's investment environment has undergone relatively large changes, which has caused some crises like Wang Rongchang, who has a big family and a big business. In addition, the increase in investment in the mainland is much higher than that in Taiwan, which has led to his idea of ​​moving to the mainland. As for the idleness he suffered from in the DPP, it was just an excuse to take the opportunity to stay out of the matter.

The important change in Taiwan's relations was two thousand years. During this year, Taiwan underwent a political party rotation. The former ruling Kuomintang lost to the Democratic Progressive Party, which had been established for only fifteen years, and lost its power.

After the DPP's Afghan government took office, during its term, it took charge of ideological leadership, continuously provoked the mainland authorities on the other side of the strait, and set up obstacles on economic and trade issues, which triggered an imminent crisis between the two sides of the strait and deterred many investors. In addition, major international political and economic publications regard Taiwan as a highly likely area of ​​conflict.

In fact, after Ah Bian was elected as the leader of Taiwan, both the mainland and the international community had expectations for him.

With the support of the concept of deeply cultivating Taiwan and laying out the global layout, the Banish government abandoned the mainland economic and trade policy that was ruthless and tolerant during the Lee Teng-hui period and formulated an active and open and effectively managed mainland economic and trade policy, thus increasing his private support rate during his first term.

Especially at the end of last year, Taiwan and mainland China joined Yang at the same time. Chen Shui-bian announced the implementation plan for the adjustment of cross-strait economic and trade policies to join the two sides of the Taiwan Strait at the beginning of this year, further relaxing the investment restrictions of capital and technology industries to the mainland. At the same time, it also opened the island's investment market to the mainland, such as towels, hairy crabs, imitation fabrics, clothing, and even real estate, which can be entered with conditions.

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This policy shift has prompted Taiwan's high-tech industries such as the lowest-end products of the industrial chain, such as parts, monitors and other surrounding industries, and mobile phone manufacturing, to transfer to the mainland.

At the same time, investors who are optimistic about cross-strait relations have also begun to enter Taiwan, hoping to divide the profits of Taiwan's rapid economic development.

However, in the recent stage, in order to avoid Taiwanese-funded enterprises being overly immersed and relied on the hotbed of the mainland market, ensure the subjectivity of Taiwan's economy, and reinterpret the international thinking of deeply rooting in Taiwan and laying out the global layout, the Banish government has transformed the original active and effective management of mainland economic and trade policies into active management, effective opening and strengthening the responsibility of management.

Under this policy change, Taiwan’s agricultural products will no longer be exported to the mainland on a large scale, which has directly affected the vitality and livelihood of Taiwanese farmers, leading to rural voters in the central and northern regions abandoning the DPP government. This policy change by the Ban government has put Taiwan in a crisis of marginalization by the globalized economy.

In Fan Wubing's view, the actions of the Ah-Bian government are actually very unwise.

According to international investment theory, the more investment is, the greater the proportion of repurchase and repurchase of overseas subsidiaries, which is consistent with the investment situation of Taiwanese capital in the mainland during the Lee Teng-hui era.

However, in recent years, Taiwan’s products have been nearly 50% of the supply sources of components and semi-finished products from Taiwanese businessmen in mainland China, making the mainland the largest source of Taiwan’s foreign exchange surplus, which has also become the cause of cross-strait economic and trade imbalance.

The raw materials, components and semi-finished products sold by mainland China also help Taiwanese companies reduce operating costs when processing these high-tech products locally.

However, the Banyan government's restrictions on Taiwanese businessmen's investment in the mainland will make Taiwanese capital unable to obtain low-cost raw materials from the mainland, thus losing its competitiveness in international marketing.

With the accumulated technology, management capabilities and internationalization level of Taiwan, as well as the advantages of language, culture, distance and other language, culture, and distance with the mainland, it can still attract other European and American companies to cooperate with Taiwanese investors to set up production bases or open up markets in the mainland. However, the Taiwan government has repeatedly obstructed the upper limit of Taiwan's investment amount, allowing European and American companies to directly leave Taiwan and enter the mainland market directly. This has made the knowledgeable people on Taiwan's island have always had the sense of Taiwan's marginalization in the past few years, and have lost the opportunity to play a key role in the global division of labor system, which has further hit the confidence of enterprises to stay in Taiwan.

Because of this, international investors have also lowered their expectations for the effectiveness of investment in Taiwan, which has further deepened the crisis of Taiwan being marginalized.

The feeling of being marginalized is very bad, which means that Taiwan has lost many opportunities for exhibitions.

Taiwan’s China Economic Research Institute has conducted an investigation and analysis on investors’ willingness to invest in Taiwan on and outside the island. Some existing factors affect the expected effects of investors at home and abroad on Taiwan’s investment environment to varying degrees, such as the stability of cross-strait political relations, the party color of the Taiwan government and the degree of political intervention in enterprises, the degree of openness of the Taiwan government to mainland economic and trade policies, the market demand status of the product on the island and the availability of talents, etc.

From the slight, urgent, slow and seriousness of these factors, it can be seen that the stability of the political and economic situation between the two sides of the Taiwan Strait actually deeply affects investors' expectations and confidence in Taiwan's entire investment environment.

Whether to fly directly from three routes or not, it affects investors' consideration of the cost of "the goods traveling to and from Taiwan, because as a world factory, Shenjian Bayi produces low-magnificent goods for all regions around the world. As a deep processing, logistics and transportation center, Taiwan, the transportation cost consumed every time the goods are repurchased or re-sold from the mainland, must be carefully considered, and whether to fly directly from the charter flight is the main factor that deeply affects the cost of investors.

As for the tax rate on the island, the difficulty of obtaining land, the ability to supply high-quality talents, product consumption capacity, the degree of legal and regulatory restrictions, and the government's administrative efficiency, these are all compromises between the government and the private sector and investors to find a balance of interests. They are all things that can be discussed and resolved on the island. This requires seeing whether the ruling government has an economic mind, whether it uses ideological leadership to deeply intervene in economic affairs, whether it is broad-minded enough to realize that the stability of cross-strait political and economic relations determines the future and destiny of the island's economic development, and whether it has an international perspective and international thinking, so that the key factors that affect foreign investment in Taiwan can be found.

Seriously speaking, a ruling ruling with great wisdom should see what is the most critical factor that determines the quality of the local investment environment, rather than putting the cart before the horse and strengthening the blessing and improvement of the minor factors, so as to ignore the decisive factors.

Taiwan's investment environment is affected by cross-strait political relations and the party attributes of the ruling people on the island. This makes the superstructure react on the economic foundation. The effect of the sudden changes in the political situation on the cross-strait and the turbulent changes in the political situation on the island will greatly affect the surge or sharp decline of the weighted index of the Taipei stock market, and will also affect every rating of foreign capital's investment environment, and will also affect the confidence of the people on the island for Taiwan's future and the decision to consider whether to move their families away from Taiwan.

For example, if entrepreneurs like Wang Rongchang, who have important influence on the island, move to the mainland at home to settle down at this time, it is very obvious. At least it can also show that the unpopularity of the A-Bian government has hindered the wealth of their industrial and commercial colleagues on the island, and it has caused complaints and deviated from the hearts of the people.

Last year, the output value of Taiwan's chip industry, which Wang Rongchang is most concerned about, decreased by nearly 30% compared with the previous year, and about $16 billion, falling behind South Korea. Taiwan's chip foundry supply has dropped from 77% of the world's supply in two thousand years to 73%. This shows that it is losing its former low-cost advantage in the face of its increasingly open mainland.

Some data also show that the low demand worldwide was the main reason for the downturn in Taiwan's chip industry last year. The poor sales of chip designers and integrated device manufacturers around the world led to a decrease in the utilization rate of production capacity of Taiwan's chip foundry suppliers, and oversupply is the main reason for the downturn in Taiwan's memory industry. Memory chips have always been the focus of Taiwan's entire chip industry and can account for one-quarter of the market share, so this has a great impact.

As the overall prospects of the chip industry are still weak, some research institutions have also made judgments that this part of Taiwan's market will only have a slight growth this year without achieving much success.

However, the reason why Wang Jianchangxun made a decision to move to the mainland was that there was another hidden truth.

In the later Panasonic exchange between Wang Rongchang and Fan Wubing, Wang Rongchang provided a very important information, that is, Zhang Zhongmou of TSMC intends to enter the mainland market and build an eight-inch wafer factory.

"Zhang Zhongmou?" Fan Wubing was stunned for a moment, as if he thought the name sounded a little familiar.

"It is Wang Rongchang, the boss of TSMC, who is not familiar with Fan Wubing, and there is no big surprise. After all, Fan Wubing has always been committed to high-end routes. He does not know much about the matter on the island of Taiwan, so he doesn't mind giving Fan Wubing a more detailed explanation.

It seems a bit inappropriate to say that Zhang Zhongmou is the boss of TSMC, but no one will object to Zhang Zhongmou, the founder of TSMC. In fact, Zhang Zhongmou has long had an important position in the chip industry on Taiwan.

"TSMC is the largest wafer foundry in the world, and many investors have made a lot of wealth by investing in TSMC. I bought TSMC stocks of about NT$4 million for long-term investments five years ago. The market value is almost NT$300 million. This shows that TSMC is a very successful company." Wang Rongchang said to Fan Wubing, "At the end of January last year, Zhang Zhongmou, who was already 70 years old, got married to Miss Zhang Shufen, who was more than 15 years younger than him, and it also became very sensational news on the island."
Chapter completed!
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