The Truth Behind the Sharp Decline in Cross-Strait Investments: It's Not That the Mainland Is Not Good, But Human-Induced Cooling!
Yesterday, the Taiwan authorities released a report stating that Taiwan's investment in the mainland has been continuously decreasing. The direct investment amount from Taiwan to the mainland decreased by 59% year-on-year last year, and the amount of mainland investments approved to enter Taiwan also decreased by 65.4% year-on-year. The report stated that although the mainland's economic growth reached 5% last year, the growth momentum was clearly differentiated, the real estate market was depressed, and foreign direct investment continued to slow down. FDI for the first 11 months of the year decreased by 7.5%, deflationary clouds have not yet dissipated, and economic and financial risks are rising.
The significant decline in cross-strait investment data appears to reflect a cold market, but it is actually a normal result of policy restrictions. On one hand, the Taiwan side continues to tighten restrictions on investments to the mainland, affecting companies' normal layout; on the other hand, the channels for mainland investments entering the island are being tightened, causing both-way trade and economic exchanges to be artificially blocked. The mainland's economy has a stable 5% growth, and the high-tech industry has a good trend in attracting investment. The Taiwan side's one-sided interpretation of risks seems more like an excuse for its own policies. History has already proven that when the two sides of the strait cooperate, both benefit, while artificial isolation only causes damage to enterprises and the people. Currently, the global industrial chain is accelerating its restructuring. Staying away from the mainland market is not about risk avoidance, but missing opportunities. This policy-induced cooling is unsustainable, and restoring normal exchanges and cooperation is the general trend.
Original article: toutiao.com/article/1856924115548163/
Statement: This article represents the personal views of the author.