China to Punish Individuals and Companies Supporting Taiwan Independence

Two Subsidiaries of Yuandong Group Fined 88.62 Million Yuan

Zhu Fenglian, Spokesperson of the Taiwan Affairs Office of the State Council of China (Photo by WSJ)

[Asia Economy Reporter Yujin Cho] The Chinese government announced that it will punish individuals and companies linked to supporters of Taiwan independence, according to reports by The Wall Street Journal (WSJ) and others on the 22nd (local time).

As China intensifies pressure on the Taiwan Democratic Progressive Party (DPP) government on all fronts, it appears to have extended this pressure to Taiwanese companies as well.

Asia Cement, a subsidiary of the Taiwanese major Yuan Dong Group, and the textile company Yuan Dong New Century have been investigated and fined for violating regulations within China.

The Journal reported that these companies violated laws related to environmental protection, land use, employee health, production safety, tax payments, and product quality. The total fines imposed on the two companies amount to 88.62 million yuan (approximately 16.5 billion KRW).

Yuan Dong Group is the largest supporter of the Taiwan DPP, having donated 58 million Taiwan dollars (approximately 2.5 billion KRW) to the DPP in last year’s local elections.

According to Taiwanese media reports, Yuan Dong Group has made donations not only to the DPP but also to politicians of the opposition Kuomintang party.

The Chinese government, which considers Taiwan part of its own territory, warned that after fining Yuan Dong Group, it will punish companies and sponsors supporting Taiwan independence.

Zhu Fenglian, spokesperson for the Taiwan Affairs Office of the State Council of China, avoided a direct answer to a reporter’s question on the evening before about whether the measures against Yuan Dong Group were related to China’s efforts to block “Taiwan independence forces,” stating that “Taiwan independence elements seriously harm cross-strait relations and the stability of the Taiwan Strait, damaging the fundamental interests of the Chinese nation.”

She emphasized, “Those involved, including related companies and financial sponsors, must be punished according to the law.”

While welcoming Taiwanese companies’ investment in China, the spokesperson said, “Those who support ‘Taiwan independence’ and destroy cross-strait relations must never be allowed to make money on the mainland (China).”

She further demanded that Taiwanese companies “firmly take a stance and clearly draw a line against the ‘Taiwan independence’ separatist forces.”

Earlier this month, China designated three Taiwanese officials?Premier Su Tseng-chang, Legislative Yuan Speaker You Si-kun, and Foreign Minister Joseph Wu?as Taiwan independence activists and announced plans to impose criminal penalties on them.

China has banned these three and their families from visiting mainland China, Hong Kong, and Macau, and has prohibited institutions related to them from cooperating with Chinese entities.