Taiwan warns of 'high risk' of investing in China |
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Fri, 14 Sep 2007 13:30
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TAIPEI (XFN-ASIA) - Taiwan today warned of the 'high risks' of investing in China following a high-profile dispute involving the island's largest retailer and its Chinese partner.'The government urges the vast number of Taiwanese businessmen in China to beware of high investment risks there and not to harbor any unrealistic expectations,' said the Mainland Affairs Council, the top China policy-making body here.'The Shin Kong Mitsukoshi incident is not an isolated case... Taiwanese businessmen's interests could be seriously violated at any time due to the lack of legal protection' in China, it said in a statement.Taiwanese enterprises are believed to have invested at least 70 bln usd dollars in China.The MAC's statement came after a row between Taiwan-based Shin Kong Mitsukoshi department store chain and its partner, Beijing Hualian Group, over their joint venture in Beijing.Beijing Hualian reportedly assigned some 200 security guards to 'take over' the store and fired all the Taiwanese executives over suspected irregularities in construction payments.But on Tuesday, both companies issued a joint statement calling the dispute a 'misunderstanding,' a move the MAC attributed to intervention from Beijing.More than 200 similar disputes were reported by China-based Taiwanese investors between January and August this year, according to the MAC.afp/kmqxfnkmCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Greater China economic and business calendar -- to Aug 28 