Taiwanese Enterprises in China Striving to Keep Heads Above Water

Taipei, July 29, 2008 (CENS)--Beset by economic slowdown and deteriorating business climate, numerous Taiwanese-invested enterprises in China have been mired in serious predicament, especially in Pearl River Delta where some 1,000 Taiwanese enterprises have closed shop.

Taiwanese enterprises in Fujian and Zhejiang provinces are faring better, but many of them are also striving to keep their heads above water and waiting for local governments to their rescue.

The National Bureau of Statistics of China reported that the nation's economic growth rate slipped to 10.4% in the first half this year, when the nation's foreign-trade surplus shrank by US$13.2 billion.

Industry insiders estimate that some 1,000 Taiwanese enterprises in Shenzhen, Dongguan, and neighboring areas have gone under or moved to other regions since last September.

Ye Chunzong, chairman of Taiwanese Chamber of Commerce Dongguan, pointed out that although the current wave of closure has affected mostly enterprises with weak business strengthen, the phenomenon is just the tip of iceberg, as numerous other healthier Taiwanese enterprises are also striving to keep their heads above water.

The chamber is helping its member firms transform their operations to weather the difficult times, such as inviting experts from China Productivity Center in Taiwan to provide consulting service to Taiwanese enterprises, in addition to encouraging joint procurement and marketing, assisting them to tap the domestic market, and helping them establish brand image and develop sale channels.

In the same vein, Taiwanese Chamber of Commerce in Shenzhen is helping member firms transplant their operations to northern China. In June, for instance, the chamber signed an agreement with Qinhuangdao government, in Hebei province, for helping Taiwanese enterprises in Shenzhen move to the city.

By contrast, the situation in Xiamen is much better, where no Taiwanese enterprise has closed shop this year. Zeng Qinzhao, chairman of Taiwanese Chamber of Commerce in Xiamen, attributed to phenomenon partially to the strategy of Taiwanese enterprises in the city owning plant buildings and land which gives them more solid business foundation, different from many others which lease land to build factories.