TAIPEI (Taiwan News) – Research by Nikkei Asian Review revealed that Taiwan electronics supplier Foxconn, the chairman of which has announced a bid to run for president, and media conglomerate Want Want, have received hundreds of millions of dollars in subsidies from China, sparking speculation over Beijing’s clout in the country’s business world.
Other corporations on the list of grant receivers also include Tingyi Holdings and Uni-President China Holdings, the report said.
The grants, despite being illegal, have added to the controversy surrounding Foxconn Chairman Terry Gou (郭台銘) as he has decided to take part in the Kuomintang primaries.
Financial Times called the tycoon a “disrupter-in-chief” in a report which noted fear among some Taiwanese voters that Gou could be lured to sell Taiwan out due to Foxconn’s investments in China and his links to Chinese leadership.
Nikkei Asian Review indicated that China adopts tax breaks among other measures to attract investment from Taiwan. Tech companies such as Quanta Computer, Pegatron, and Compal Electronics have all received such incentives.
Companies listed in Taiwan are not required to reveal the amount of such government grants, but Foxconn and Want Want are required to disclose relevant information to be able to trade on Chinese or Hong Kong exchanges.
However, an expert speaking on condition of anonymity told Taiwan's Central News Agency that should Beijing intend to influence Taiwanese companies’ non-market behaviors, the more possible approach would be to channel funds to privately-owned enterprises by particular business figures instead of those required to disclose trading information.
