readerc54 wrote:fountainhall wrote:The biggest card China can play in the meantime is economic. Taiwan has become a popular and quick getaway for a growing number of Chinese. I recall there was a small dip last year after China pulled the plug on flight frequency when the new Taiwan president took office but haven't heard any more about it since.
The other issue is Taiwanese investment in mainland China. This stood at US$133.7 billion between 1991 and 2013. Two years ago the Economist estimated there are presently 88,000 Taiwan companies operating in China employing 15.6 million mainland Chinese. Alongside the more strained relations under the new Taiwan President, the annual investment has - like tourism - been reduced, but still stood at $9,18 billion last year. However, rising wages in China are thought to be another reason for the decline as operating factories in China becomes too expensive to compete with countries like Cambodia and Vietnam.
In my last three visits to Taipei it has been obvious that hotel rates are falling, thanks in part to the reduction in mainland tourists. The same is true in Hong Kong where Beijing has started turning the screws on tourism until the young democrats accept that it will not budge of the terms of the Joint Declaration on Hong Kong's future and the Basic Law, both jointly negotiated by the British the Chinese. In both territories, Beijing has the upper hand, no matter what others think.