China Courts Taiwanese Investors Despite Political Tensions

Mainland China is stepping up efforts to attract Taiwanese investment despite political tensions, but it's only impacting firms with existing ties there. Many attendees of a recent event already had assets in mainland China.

Beijing sees increasing economic integration as a way to advance its political goal of reunification. But Taiwan remains cautious about new investments due to economic uncertainty.

Taiwanese firms are attracted to the large market and supply chains but concerned about getting their money out amid tense relations.

Incentives like tax breaks are ineffective at drawing unfamiliar businesses. Investors want sustainable growth, not temporary perks.

China hopes to make regions like Zhejiang and Fujian demonstration areas, but coastal provinces will likely compete for Taiwanese investors to buoy their economies.