Processing Trade, Loosening Up Footwear And Other Taiwan Funded Enterprises Are Coming Back To Life.

The Chinese government will completely change the new version of the processing trade policy. Chen Deming, Minister of Commerce of China, yesterday (12) confirmed that as a result of the large number of employment opportunities in the processing trade export industry, all traditional industries belonging to small and medium sized, large number of job opportunities and pollution-free Taiwanese industries would be excluded from the control list, which would enable some Taiwanese coastal enterprises to engage in furniture, clothing, footwear and textile industry.

In July 23rd last year, the Ministry of Commerce, the General Administration of customs and the China Banking Regulatory Commission jointly announced the Announcement No. forty-fourth. Up to 1853 customs coded products were included in the processing trade restriction category, mainly related to plastic raw materials and products, textile yarns, cloth, furniture, metal roughing products and other labor-intensive industries.

As a result of this policy, it has a major impact on Taiwanese funded enterprises, and Taiwan funded enterprises have rebounded strongly. The Chinese government has amended the announced policy, deciding that as long as it is a commodity manufacturer with high added value or scientific and technological concept, it can be excluded from the list that must be paid in advance.

Chen Deming, who provided a large number of jobs and pollution-free SMEs, said yesterday that some enterprises in Taiwan, Hong Kong and Southeast Asian countries were affected by the new deal in processing trade last year.

When will the external concerns be adjusted again this year?

He said that the Ministry of Commerce was sorting thousands of processed trade goods, but the list of processing trade restrictions was not confirmed.

Chen Deming said that due to the sharp decline in exports in February this year, coupled with subsequent international uncertainties, the Chinese government still needs further assessment.

But what is certain is that even if we continue to publish the new list, we will not affect more traditional Taiwanese enterprises.

Chen Deming said that under the established policies, the industry of "two high and one capital" must be adjusted, but small and medium enterprises that provide large number of job opportunities and pollution-free will not be included in the restriction or prohibition of processing trade. Chen Deming also released the issue of "investment protection agreement" between the two sides.

He said that the mainland now has a lot of foreign investment and has 1 trillion and 550 billion yuan (the same below) pressure on foreign exchange reserves. If we want to further open up investment from mainland to Taiwan, we need to protect the interests of investors. If the two sides can reach a consensus on the one China principle and negotiate safeguards, the mainland will be happy to support it.

If not for pformation, it will not last four years since the beginning of last year, since the mainland has implemented the policy of regulation and control, especially the reduction of export tax rebate rate and the introduction of the new labor contract law.

According to the latest survey, more than half of the Taiwanese businessmen surveyed pessimistic that this year's profits will decline, nearly 80% of Taiwanese businessmen are facing the pressure of pformation and upgrading, and more than 60% of Taiwanese businessmen believe that if they do not pform and upgrade, they will not last four years.

The Taipei Institute of management and Research Foundation announced the latest survey report on mainland Taiwanese business operation yesterday (12). The chairman of the foundation, Chen Mingzhang, led the research team to Shanghai, Suzhou, Kunshan, Fuzhou, Xiamen, Dongguan, Shenzhen, Zhongshan, Guangzhou and other places in January this year, and conducted interviews and questionnaires with more than 300 Taiwanese funded enterprises to understand the difficulties and coping strategies faced by Taiwanese businessmen.

Chen Mingzhang pointed out that under the mainland's frequent policy of regulation and control, the investment environment of the mainland has changed drastically, especially the drawdown of the export tax rebate rate and the introduction of the new labor contract law, which has led to a substantial increase in the operating costs of Taiwan businessmen, which has deepened the pressure of the operation of Taiwan businessmen, and many Taiwanese businessmen are not optimistic about the profits of enterprises this year.

Chen Mingzhang said that in the survey report, Taiwanese businessmen predict that this year's profits will be reduced, accounting for 55% of the total number of respondents.

Among them, the proportion below 5% was the largest, accounting for 19.4%; 5% to 10% were 18.9%, and 10% to 15% were 8%.