Taiwan: Direct investment in China: halved in 10 years
-Low profit margin “Be wary of joint prosperity”-
“The Epoch Times” (October 19th)
An article entitled “Taiwanese companies invest in China in half in 10 years” was published.
Taiwan’s latest research:
-Foreign direct investment of Taiwanese companies-
It was found that China’s share of FDI has decreased by half in 10 years.
Taiwanese citizens
Economic Democratic Union
On the 13th, under the policy of the Chinese authorities, an “online debate on the future response of Taiwanese companies expanding into China” was held.
Academia Sinica
Institute of Sociology
Researcher Munehiro Hayashi participated in the debate.
1992-2014
The composition of mainland China in Taiwan’s total FDI has expanded every year.
After 2015
The composition ratio of mainland China began to decrease year by year.
This composition ratio dropped sharply from “61.2% in 2012 when the Xi Jinping administration was inaugurated.”
It has dropped to the current 33.3%.
This is the result of Taiwan’s reaction to the political situation.
Not only Taiwanese companies but also companies from various countries are rushing to withdraw from China.
Sanchi on both banks, 1000 major companies:
Taiwan media announces every year.
“1000 major companies on both banks (continent, Taiwan, Hong Kong)” ranking
2007
356 Taiwanese companies ranked in.
17 years
124 companies ranked in.
20 years
The number of rank-ins has decreased to 108 companies.
Munehiro Hayashi pointed out:
A Taiwanese company pointed out the phenomenon that “the more assets you have in mainland China, the lower the gross profit margin will be.”
This is the first fact revealed.
This is the result of the Chinese authorities taxing under various names.
It seems that the deficit of the local government was being compensated by the company.
Taiwan semiconductor manufacturing giant
TSMC
In the case of TSMC, the total assets in mainland China are less than 20% of the total TSMC.
80% of TSMC’s assets are located in Taiwan.
Most of the TSMC employees are in Taiwan, so
Even if labor costs are relatively high
Gross profit margin remains at the 30% level.
Taiwan Electronic Equipment Manufacturer
Foxconn
Foxconn’s mainland Chinese assets account for more than 20% of the total.
It has more than 900,000 employees in mainland China.
In 2019, Foxconn’s gross profit margin fell to 2.2%.
Where to enter China:
It suggests that “in China as a destination for business expansion, costs will increase in the future.”
This is an important point.
World view of Toshiyoshi Katsumata
http://hisayoshi-katsumata-worldview.com/archives/27709714.html
Taiwanese companies halve investment in China in 10 years | The Epoch Times