The Shadow of THAAD Retaliation... China Sanctions Taiwan's Yuandong Group

Fines for Violations in Environment, Production Safety, and Firefighting... Alleged Issue with DPP Election Fund Support
During Taiwan Election, $2.09 Million Supported DPP, Mention of Su Tseng-chang Premier's Financial Support

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China has imposed sanctions on Yuan Dong Group (遠東集團), a leading Taiwanese company.

Chinese authorities have taken disciplinary actions such as fines against Yuan Dong Group based on violations of Chinese laws related to the environment. However, it appears that the issue stems from the group's financial support for the Democratic Progressive Party (DPP), which advocates for Taiwan independence.

[Image source=Reuters Yonhap News]

The state-run Xinhua News Agency reported on the 23rd that authorities from five Chinese provinces and municipalities?Jiangsu Province, Hubei Province, Sichuan Province, Jiangxi Province, and Shanghai?conducted an investigation into Taiwan's Yuan Dong Group and uncovered illegal activities.

Xinhua stated that subsidiaries of Yuan Dong Group violated Chinese laws in various areas including environment, land, welfare, production safety, fire safety, taxation, and quality while conducting business in China. Yuan Dong Group acknowledged the violations, was fined according to Chinese law, and the approved idle land will be reclaimed.

Zhu Fenglian, spokesperson for the Taiwan Affairs Office of the State Council of China, said at a briefing held the previous day, "We hope for investment and development by Taiwanese companies," adding, "Mainland China will protect the legitimate rights of Taiwanese compatriots and Taiwanese companies according to the law."

The spokesperson further stated, "There are companies that disrupt and damage cross-Strait (China-Taiwan) relations and are making money." He emphasized, "Taiwanese businesspeople must clearly distinguish right from wrong and draw a clear line from Taiwan separatist forces."

He also added, "Taiwanese companies should take concrete measures for the peaceful development of cross-Strait relations." This clearly indicates that the sanctions against Yuan Dong Group are not unrelated to Taiwan independence movements.

Photo by Global Times Capture

The sanctions appear to be related to Yuan Dong Group's financial support for the ruling Democratic Progressive Party (DPP) in Taiwan.

The state-run Global Times published an article titled "Taiwan's Yuan Dong Group, which funded the DPP, violated laws on the mainland and was fined," reporting that Yuan Dong Group provided 58 million New Taiwan Dollars (approximately 2.09 million USD) during the 2020 Taiwan elections.

It also pointed out that Yuan Dong Group financially supported Su Tseng-chang, the Premier of Taiwan's Executive Yuan, who is on China's blacklist. The Global Times mentioned that Premier Su is a strong separatist and that he and his family are banned from visiting the mainland (including Hong Kong and Macau).

The media outlet reported that Yuan Dong Group posted messages on social media supporting the DPP and other Taiwan separatists.

The Global Times added that as of 2020, among 120,000 companies headquartered in Taiwan, 1,199 are listed on the Taiwan Stock Exchange.