China Urges Taiwanese Companies Hit by Sanctions to "Come to Beijing Stock Exchange"

State Council Taiwan Affairs Office: "Beijing Stock Exchange Offers Opportunities for Taiwanese Companies" Expresses Participation Interest
Warning of Punitive Sanctions for Companies Supporting Taiwanese Independence Funds Related to Yuantong Group Sanctions

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese authorities have expressed hope to attract Taiwanese companies to list on the Beijing Stock Exchange. Previously, Chinese authorities confirmed violations by Taiwan's Yuantong Group (遠東集團), which operates in five provinces and cities including Shanghai, Jiangsu, Jiangxi, Hubei, and Sichuan, and imposed fines and reclaimed idle land. It appears that Yuantong Group was subject to punitive sanctions by China after being found to have provided election funds to the Democratic Progressive Party (DPP), which is pushing for Taiwan independence, and related figures.

[Image source=Reuters Yonhap News]

According to Chinese media including the state-run Xinhua News Agency on the 25th, the Taiwan Affairs Office of the State Council stated at a regular briefing held the previous day that the Beijing Stock Exchange is a platform offering many benefits to companies with technological capabilities in fields such as information technology, and expressed hope for the participation of Taiwanese companies.

Zhu Fenglian, spokesperson for the Taiwan Affairs Office, said, "The mainland (China) has a capital market system in place that Taiwanese companies can participate in," adding, "The mainland will provide opportunities to Taiwanese entrepreneurs and companies." Zhu further stated, "The mainland's capital market policies apply equally to Taiwanese companies."

She also announced that the 'Nanjing Zijinshan Entrepreneurs Summit' is scheduled to be held as planned on the 7th of next month. Zhu emphasized that the theme of this summit is 'New Opportunities, Meeting Sharing,' and that exchanges between enterprises on both sides of the Taiwan Strait (China and Taiwan) will be further strengthened, providing greater opportunities for Taiwanese companies.

Zhu also mentioned that the 'Shanghai-Taipei Forum' will be held on the 1st of next month, reiterating that exchanges and cooperation in various fields across the strait will help promote the joint development of both sides.

While pledging to provide Taiwanese companies with the same opportunities as mainland companies, Zhu strongly asserted, "We will never tolerate Taiwanese companies that earn money on the mainland supporting independence activists."

She added, "The strict punishment of Taiwanese companies (Yuantong Group) is for the peace and stability of the Taiwan Strait," and stated that "related companies and individuals who are the financial sources of hardline Taiwan independence elements will be subject to necessary legal measures." Although Chinese authorities have announced sanctions such as fines against Yuantong Group based on a series of violations related to environmental issues, employee employment and treatment, production stability, fire safety, taxation, and quality, this statement is interpreted as a remark and warning implying that the fundamental reason for the sanctions is the provision of election funds to independence forces such as the DPP.

In this regard, Global Times reported that Yuantong Group supported the ruling DPP with 58 million Taiwan dollars (approximately 2.5 billion Korean won) during last year's local elections in Taiwan, thereby supporting independence forces.

It also pointed out that Yuantong Group provided financial support to Su Zhenchang, the Premier of Taiwan's Executive Yuan, who is on China's blacklist. Su is a strong separatist, and he and his family are banned from visiting the mainland (including Hong Kong and Macau), according to Global Times.

Meanwhile, the Taiwan Affairs Office of the State Council also unveiled plans on the same day for the early construction of cross-strait transportation infrastructure projects, including a maritime bridge connecting Kinmen Island (金門島) and Matsu Island (馬祖島).