Taiwanese businessmen in China have expressed concerns that their businesses will suffer once Taiwan-elect pro-independence President Tsai lng-wen assumes office.

Taiwanese people doing business in China fear that cross-strait economic relations could be jeopardized by the pro-independence agenda of Tsai and her refusal to recognize the 1992 consensus.

Like Us on Facebook

Already, Taiwanese businessmen are feeling the economic crunch with Beijing's slow economic growth and stiff competition, They fear that their businesses will suffer more following Tsai's pledge to reduce Taiwan's economic reliance on the mainland when she enters office on May 20.

                                                         1992 consensus

"As business people based on the mainland, we cannot help but worry about the prospect of cross-strait relations, given the DPP's pro-independence platform and Tsai's refusal to recognise the 1992 consensus," said Yeh Chun-jung, vice-chairman of the Association of Taiwan Investment Enterprises on the Mainland.

The consensus that was reached between Chinese and Taiwanese representatives in 1992 states that both sides belong to 'one China.' The oral agreement, analysts said, leaves open to interpretation what 'one China' is.

Tsai and her pro-independence party, the Democratic Progressive Party, won by a landslide in the recently-concluded Taiwan presidential elections, ending the eight year rule of the pro-China government of Ma Ying-jeou.

                                                         Cross-strait relations

Under Ma's rule, there was a warming of cross-strait relations and the expansion of economic exchanges between both sides.

Beijing has reiterated that peaceful development of relations between China and the island will happen only if both sides recognize the 1992 consensus.

Some Taiwanese businessmen fear that Tsai's pronouncements that she will trade heavily with the Southeast Asian nations and take businesses to India and other places will spell doom for Taiwanese firms in the mainland.

                                                         Economic reliance

"With production costs on the mainland continuing to rise and economic growth in China less shiny than before, any plan by the DPP government to reduce economic reliance on the mainland will make us suffer even more," said Guangzhou-based businessman Shen Heng-chiang.

There are currently about 1 million Taiwanese businessmen doing business in China and around 100,000 Taiwan-invested businesses on the mainland. Records shows that up to 40 percent of Taiwan's exports go to China.

Ding Kun-hua, honorary chairman of the Taiwan investment association, said Tsai's government would find it difficult to expand economic relations with other countries "because the mainland is too big to ignore."'

                                                          Trade exchanges

Hu Hsing-chung, vice chair of the Association of Taiwan, said Tsai should not forsake Taiwanese businessmen in its plan to increase trade exchanges with other nations.

"Actually there is nothing new in Tsai's planned southbound policy as Lee Teng-hui proposed this in 1992 when he was president," said Ding, adding the policy had been unsuccessful.

"It should help Taiwanese firms tap business opportunities through the mainland's 'One Belt, One Road' initiative for infrastructure development projects," Hu said.

TagsTaiwanese businessmen, china, President-elect Tsai lgn-wen, 1992 consensus