Beijing’s focus on security and law enforcement actions has harmed both the country’s economic requirements and the CCP’s goals.
Commentary
Beijing appears to be hindering its own progress. It acknowledges the necessity of foreign investment to fuel China’s economy and attract essential business and technological knowledge for growth.
Despite this recognition, the CCP engages in activities that deter foreign investments. One such action is the frequent police raids on foreign businesses in China, often based on questionable reasons or underlying political motives. While human rights advocates may criticize these practices, the economic repercussions are the focus here.
A recent incident at a Foxconn facility in Zhengzhou exemplifies this issue. This Taiwanese-owned plant, known as “iPhone City” due to its role in Apple’s iPhone supply chain, had four employees arrested by Beijing police on vague charges. While production remained unaffected, the threat of further disruptions could impact foreign investment decisions in China.
Taiwanese authorities have expressed concern over these arrests, warning citizens to avoid nonessential travel to mainland China. Given Taiwan’s sensitivity to such actions, this issue is taken seriously.
In a previous incident, Foxconn faced an investigation by CCP authorities coinciding with founder Terry Gou’s presidential campaign in Taiwan. Beijing’s threats against Taiwanese citizens have further strained relations.
In response, Taiwanese companies have reduced ties with mainland businesses, with investment flows declining since 2010. Last year saw a nearly 40 percent drop in investments from Taiwan to China, with funds redirected to Southeast Asian countries like Singapore, Vietnam, Indonesia, Malaysia, and Thailand.
Not only has Beijing’s behavior affected Taiwan, but it has also influenced decision-making globally. Actions like the arrests at Foxconn and the raid on American consultants have deterred foreign investments, contradicting the CCP’s need for such flows.
The reluctance to invest in China is evident in trade figures, with imports from China decreasing while imports from other countries like India and Vietnam rise. The question remains: why is Beijing acting against its own economic interests?
Maybe the fundamental question is whether the CCP can improve itself.
Opinions expressed in this piece are solely those of the author and may not represent the views of The Epoch Times.
