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Entrepreneurs ponder China's move to regulate preferential policies

Entrepreneurs ponder China's move to regulate preferential policies

Taipei, March 21 (CNA) Taiwanese businesspeople operating in China will flock home in the wake of China's move to regulate preferential policies on foreign investors, the head of Delta Electronics Inc. (???) said on Saturday. Delta Chairman Bruce Cheng (???) said that with China adjusting its economic policy and rising production costs, the willingness of Taiwanese businesspeople operating in China to invest in Taiwan is certain to increase. However, he pointed out that Taiwan faces a shortage of high-tech talent, a failing that urgently needs to be resolved if the local manufacturing sector is to be transformed. In contrast, T. C. Gou (???), chairman and president of Foxlink Group (????), a leading provider of fully-assembled accessories containing essential mechanical and electronic components, remains confident about operations in China. Gou said that his contacts with Chinese officials have persuaded him that Beijing is serious about establishing a fair market, adding that Taiwanese businessmen are not afraid of competition because they still retain a clear lead in efficiency and technology. In the past, local governments in China sought to lure foreign investors by providing a wide range of tax incentives on a case-by-case basis, but China's State Council issued a notice in December that requires ministries and local governments "clean up" and more strictly regulate preferential policies by the end of March. Specifically, existing local incentives that violate state laws will have to be rescinded; whereas incentives that are not in violation of laws and deemed essential by local governments will need to be approved by the State Council. (By Sun Ching and Lilian Wu)


Updated : 2021-07-27 22:18 GMT+08:00