Will there be a backlash for Beijing?
The News Lens
Date: 2016/12/03
By: Edward White
Beijing may move to squeeze Taiwan’s China-dependent economy after the historic phone call
Photo Credit: Kim Kyung-Hoon / Reuters / 達志影像
between U.S. President-elect Donald Trump and Taiwan President Tsai Ing-wen (蔡英文).
Amid the ever-present tension across the Taiwan Strait, China, including Hong Kong and Macao, is still Taiwan’s largest trading partner, accounting for about 40 percent of Taiwan’s total exports.
Ross D. Feingold is a senior advisor at DC International Advisory, a consultancy that advises clients on political risk in markets across the globe. Taipei-based Feingold is wary the phone call may have implications for Taiwanese companies with interests in China.
“When European governments or Australia, for example, met the Dalai Lama or undertook other actions that displeased Beijing, their companies felt repercussions through regulatory investigations, loss of procurement opportunities, and the like,” Feingold says. “In addition to political or military pressure, China has this tool to deploy against Taiwan, whereas up to now under President Tsai, China may have looked at the Taiwan corporate world as a friendly group to utilize in its united front tactics.” [FULL STORY]
