How attractive is today's China to Taiwanese investors?

l  The recent plunges in stock markets worldwide have made investors nervous and uncertain of the economic climate in the months ahead. As such, changing socioeconomic conditions on the Chinese mainland have led some Taiwanese businesses to reassess their investment and operation decisions there.

l  To most, China does not appear to be as attractive as it once was. More importantly this “new China” is being hit with eight shortages--namely water, power, labor, capital, work ethics, confidence, rising wages, and dwindling profits. Though these problems have been around for some time, most of the Taiwanese businesses did not feel the heat until early 2010.

l  Although China might have become less attractive to some investors, China's 2011-2015 development plans and last year’s “Cross-Strait Economic Cooperation Framework Agreement (ECFA)” should offer plenty of opportunities for Taiwanese businesses. Therefore, it remains the top priority for both sides to sign the investment protection agreement at the next summit between China’s Association for Relations Across the Taiwan Strait (ARATS) and Taiwan’s Straits Exchange Foundation (SEF), which may take place in mid- to late September in Tianjin.

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