According to a report by Epoch Times on May 2, 2025, Taiwan’s investment in mainland China in the first quarter of this year increased by 127.1% compared to the previous year, as stated by the Taiwan Affairs Office of the Chinese Communist Party. In response, Taiwan’s Mainland Affairs Council pointed out that the proportion of Taiwanese businesses investing in mainland China compared to Taiwan’s total outward investment has been declining, raising questions about the accuracy of the Chinese Communist Party’s data.
The spokesperson for the Taiwan Affairs Office of the Chinese Communist Party, Zhu Fenglian, announced on the 1st that the actual use of Taiwanese funds in mainland China in the first quarter of this year reached 1.26 billion US dollars, representing a 127.1% increase compared to the previous year. Additionally, 1,592 new Taiwanese investment enterprises were established.
On the same day, Taiwan’s Mainland Affairs Council issued a press release stating that the Ministry of Economy has consistently reported approved investment amounts and numbers on a monthly basis regarding Taiwanese investments in mainland China. The proportion of Taiwanese investments in mainland China compared to Taiwan’s total outward investment was 83.8% in 2010, decreased to 7.5% in 2024, and further dropped to 2.7% in the first quarter of 2025, indicating a clear downward trend.
The Mainland Affairs Council of Taiwan reported that the approved investment amount in the first quarter of 2025 was 340 million US dollars, a 63% decrease compared to the same period last year. These statistics are widely used by various sectors and are deemed reliable.
According to a survey commissioned by Taiwan’s Mainland Affairs Council to the General Chamber of Commerce in 2024, it was found that the proportion of mainland Chinese Taiwanese businesses considering ending their operations in mainland China within the next 3 to 5 years has increased compared to previous years. The Straits Exchange Foundation recently inquired Taiwanese businesses in mainland China, who expressed their desire to end their business operations on the Chinese mainland due to rapidly declining profits, and showed an increased interest in investing outside of mainland China. These findings are consistent with the statistical trends announced by the Ministry of Economy.
The Mainland Affairs Council of Taiwan pointed out that due to the lack of regular publication of statistics on Taiwanese investments in mainland China by the Chinese Ministry of Commerce, and the different statistical standards between the two sides, a direct comparison of the data is not currently feasible. However, based on statistics from the Chinese Ministry of Commerce showing a 10.8% year-on-year decrease in foreign direct investment in the first quarter of this year, the 127.1% growth in Taiwanese investments in mainland China raises questions about its accuracy and warrants further investigation.