Xu Weizhi, a senior commentator and part-time teacher at the Department of Finance at Taichung University of Science and Technology in Taiwan, said that Taiwanese entrepreneurs have been withdrawing from China.

In an interview with Chinese-language media Da Ji Yuan on Dec. 5, Xu Weizhi said that China was no longer a preferred investment destination for Taiwanese entrepreneurs. 

Taiwan’s total foreign investment capital in 2011 was $18 billion and $14.38 billion of this sum was invested in China, accounting for 79.5% of the total foreign investment of Taiwan, Xu said citing information from the Taiwan Financial Regulatory Commission.

Taiwan’s foreign investment in 2020 was $17.7 billion. Investment in China had decreased to $5.906 billion, accounting for only 33.3%. of total investments.

According to Xu Weizhi, the data showed that Taiwan’s share of investment in mainland China has rapidly declined over the past decade. This amount has been cut by more than half. 

Taiwan’s electronics are well-known worldwide, however, Taiwanese high-tech entrepreneurs have been pulling out their investments from China.

In addition, when the US–China trade war occurred, China increased its purchases from Taiwan, proving that Taiwan’s increased exports to China were due to China’s demand for high-tech goods from Taiwan, not that Taiwan was dependent on China.

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