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Chinese influence in
service sector prevalent: report
By Lin Shih-ping, Weng Lu-huang and Jake Chung / Staff reporters
and staff writer
A Chinese-language Business Weekly report published on Wednesday raised
questions about why the government has not told the public that Chinese capital
has already been invested in many Taiwanese companies, while alleging that the
leaders of the two main political parties may be using the debate on the
cross-strait services trade agreement for political posturing.
President Ma Ying-jeou (馬英九) and Democratic Progressive Party Chairman Su Tseng-chang
(蘇貞昌) have agreed to participate in a TV debate on the controversial agreement,
which will be hosted by the Public Television Service on Sept 15.
According to Business Weekly, at least 162 types of services in the tertiary
sector, as well as 204 in the manufacturing industry, have been opened up to
Chinese investment since 2010.
Chinese investment in these fields is as high as 97 percent, the article said,
adding that if the agreement is ratified by the legislature, nearly two-thirds
of Taiwan’s tertiary sector and manufacturing industry would be opened up to
Chinese investment.
There are 198 Chinese-invested companies in Greater Taipei alone and they are
very diverse types and sizes, from large portside logistics companies to small
gas-tank delivery stores.
These companies are the silent new neighbors of many Taiwanese and changes to
policy are already too late, the article said, pointing to digital commerce as
an example, saying that although it was not part of the cross-strait service
trade agreement, Chinese Internet platforms such as Taobao (淘寶) are still
accessible by Taiwanese.
New Taipei City’s Sindian District (新店) — the registered location of six
Chinese-funded businesses — has almost every industry, from furniture retailers,
product desigers and restaurants to information technology firms and software
designers, the article said.
Beixin Road in New Taipei City is also home to many Chinese-funded businesses,
it said, adding that it is a virtual “Chinese Cayman Islands.”
Local residents said the companies had even attracted the attention of the
Ministry of Justice’s Investigation Bureau when they set up three years ago.
“We hope that it’s not a front for a group of Chinese con artists,” a local
resident said.
However, borough warden Hsu Hao-chen (許皓榛) said the companies maintained good
relations with their neighbors and were run by Taiwanese employees.
Despite government assurances that if Chinese-funded businesses exceed the
parameters of their registration licenses they would be reported and their
licenses revoked, in reality the government is unable to make them toe the line,
the article said.
The government should come clean and not use the debate — being funded by the
taxpayer — for further political posturing, the article said.
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