Taiwanese Executive Faces Exit Ban in China Amid Rising Tensions
The recent confirmation by Taiwan authorities that a senior executive from a major Taiwanese industrial group has been banned from leaving China is causing concern among analysts regarding the risks of traveling and conducting business in the country. This case comes at a time of heightened tensions between Beijing and Taipei, with a number of foreigners also being denied permission to exit China.
The Mainland Affairs Council (MAC) of Taiwan, which oversees relations with China, disclosed that an unnamed senior executive from Formosa Plastics Group was detained by local authorities upon his arrival in Shanghai from Taipei on September 1. Initially, the MAC refrained from sharing specific details due to safety concerns. However, on Thursday, the council indicated that the exit ban imposed on the Taiwanese executive was likely due to a criminal offense rather than political or national security reasons.
In response to the situation, Formosa Plastic Group stated that they are working to gather more information about the case. The company reassured that the senior executive is safe, free to move around, and cooperating with the Chinese authorities’ investigation. They also pledged to monitor the situation closely and provide any necessary assistance to their executive.
Analysts draw parallels between this case and previous instances where Beijing exerted political pressure on Taiwanese or foreign businesses. For instance, the Chinese government’s tax investigation into Taiwanese tech giant Foxconn last year coincided with the company’s founder Terry Gou’s involvement in Taiwan’s presidential election. This led to speculations of political motives behind the probe. The lack of transparency in the current case leaves room for similar suspicions regarding Beijing’s intentions.
The uncertainty surrounding the Taiwanese executive’s situation is expected to impact Taiwan’s business community. Wang Kuo-chen, an economist at the Chung-Hua Institute for Economic Research, believes that the incident may prompt more Taiwanese companies to reconsider their operations in China. This potential exodus could stem from concerns about protecting their interests in light of the risks associated with doing business in China.
In a separate development, a 22-year-old Taiwanese man named Kuo went missing in China after arriving in Shanghai, prompting his family to seek assistance from the Taiwanese government. The Mainland Affairs Council and Taiwan’s Straits Exchange Foundation are working to determine Kuo’s whereabouts and ensure his safety.
The recent sentencing of Taiwanese political activist Yang Chih-yuan to nine years in jail on secession charges is part of Beijing’s crackdown on what they deem as “Taiwan independence forces.” This stricter approach aligns with Beijing’s focus on national security, which has led to increased scrutiny of Taiwanese individuals in China.
Amid these developments, foreign nationals from various countries have also faced challenges leaving China. According to the Duihua Foundation, around 200 Americans are currently under coercive measures in China, with over 30 Americans barred from exiting the country. Additionally, at least 17 Japanese citizens have been detained on spying charges since 2015, with some still in Chinese detention.
John Kamm, executive director of the Duihua Foundation, points to an escalation in Beijing’s use of coercive measures against foreign nationals since President Xi Jinping assumed power. These actions have not only impacted the individuals involved but have also negatively affected China’s reputation, leading to decreased foreign investment and tourism in the country.
Despite efforts to attract foreign investment, experts like Wu Se-chih from Taiwan believe that China will prioritize national security over economic considerations. This prioritization may further deter Taiwanese businesses from engaging with the Chinese market, as concerns over safety and legal risks persist.
In conclusion, the case of the Taiwanese executive facing an exit ban in China underscores the challenges and risks associated with traveling and conducting business in the country. As tensions between Beijing and Taipei remain high, individuals and companies must navigate the complex political landscape to safeguard their interests and ensure their safety. The implications of these incidents extend beyond the individuals directly affected, impacting broader economic and diplomatic relations between Taiwan and China.