During the Olympics, the Paris Evergreen Laurel Hotel displayed the national flags of participating countries, but omitted the Chinese national flag, sparking controversy when Chinese internet celebrities publicized the issue online, leading the Evergreen Group to issue a statement. Several scholars believe that Taiwanese companies, in order to survive and make profits, have to “bow down when under the roof” and Evergreen had no choice but to acquiesce. However, the best solution would be to withdraw from China.
On the 13th, Chinese internet celebrity “Instructor Zhang” released a video accusing the Paris Evergreen Laurel Hotel of displaying national flags of Olympic participants internally but omitting the Chinese flag. They requested to display the Chinese flag, but this was refused, causing a dispute that also affected the operations of Evergreen Group’s Shanghai hotel and even led to the suspension of online booking services.
On the 15th, the Evergreen Laurel Hotel issued an apology, followed by Evergreen Group issuing another apology statement on the 23rd, also expressing support for the “1992 Consensus” and opposition to Taiwan independence, which stirred up controversy in Taiwanese society.
Taiwan’s Mainland Affairs Council, Ministry of Foreign Affairs, and Democratic Progressive Party released press statements on the 24th strongly condemning China for manipulating international business activities through economic coercion, attempting to influence them through commercial pressure for political purposes.
Regarding Evergreen’s attitude, which initially adamantly refused to hang the Chinese flag but later embraced the “1992 Consensus” and opposed Taiwan independence, Wang Zhisheng from the Chinese Asia-Pacific Elite Exchange Association analyzed to Central News Agency that this must have been due to pressure from Beijing, not only economically but also politically through online opinion pressure, forcing Evergreen to present such statements.
Former Chairman of Taiwan Victims of Investment in China Association, Gao Weibang, in an interview with reporters, has long advocated for Taiwanese businesses to stay away from China, not seeking to make investments and profits there because even if they make money, they may not be able to bring it back, and it could all just be a fleeting dream. He stated, “Many Taiwanese businessmen have had their properties plundered in mainland China, too many such examples.”
Former United Microelectronics Corporation Chairman Cao Xingcheng, who once expressed regret for assisting UMC in establishing factories in mainland China, admitted in response to the Evergreen Laurel Hotel incident that, “Taiwanese companies wanting to do business in China have to bow down when under the roof and bite the bullet to make money.”
He also warned Taiwanese businessmen that if Taiwan falls, all their assets will be wiped out. Therefore, if Taiwan is not preserved and they instead yield to the Chinese Communist Party, it may end up in total loss, with all assets reduced to zero. Cao Xingcheng expressed these views during an interview at the Youth National Security Training Camp hosted by the Democratic Progressive Party on the 24th.
On the 23rd, Taiwan’s Ministry of Foreign Affairs issued a press release stating that China has been coercing various companies over the years, including using economic coercion, sanctions, tax inspections, and violating regulations to force companies to comply with Beijing’s political objectives.
Senior political and economic commentator in Taiwan, Wu Jialong, told reporters that in theory, Evergreen should not have made this mistake. “The rationale is simple. The Chinese government is not a lawful society but an evil regime. Dealing with them will surely lead to losses. Very few actually benefit from the Chinese government. The basic principle is to stay away from China.”
Deputy Director of the National Policy Research Institute, Guo Yuren, told reporters that even the world’s strongest country, the United States, has its Hollywood movies subjected to political censorship by China, not to mention other countries. He gave an example where the Nationalist flag on Tom Cruise’s flight jacket in the 2022 film “Top Gun: Maverick” was protested by China and subsequently removed!
PEN America, a non-profit organization promoting freedom of speech in the United States, had released a 94-page report in 2020 titled “Hollywood Made, Beijing Censored,” which revealed systematic self-censorship in the production process of American movies for the Chinese market.
The report also mentioned that major American movie companies and top directors increasingly make creative decisions based on “avoiding angering China.” Three “T” words – Taiwan, Tibet, Tiananmen Square incident are considered sensitive topics not to be touched upon.
Guo Yuren further explained that the incident at the Paris Evergreen Laurel Hotel would essentially impact Evergreen’s parent company. He added, “Including aircraft, freighters, many that need to enter and exit Chinese ports and airports, the Chinese government will definitely punish Evergreen Airlines or Evergreen Shipping with various technical penalties through administrative measures.”
Guo Yuren believes that as a for-profit enterprise, Evergreen should not be subject to excessive political interpretations.
According to a 2023 survey by the U.S.-China Business Council, over one-third of American companies had reduced or suspended their investment plans in China during the past year.
France 24 reported that in 2023, South Korea’s direct investment in China decreased by 78.1%, marking the largest drop in 30 years, particularly significant in the contraction of investments in the manufacturing sector. Japanese companies directed only 2.2% of their new overseas investments in 2023 to mainland China, much lower than investments in Vietnam and India, and only a quarter of the investment in Australia. Taiwan’s new investments in China in 2023 were the lowest since 2001.
Wu Jialong cautioned Taiwanese businesses that investing in China is too complicated and risky, especially in terms of personal safety, as the Chinese “Anti-Spy Law” easily accuses individuals of espionage. The employment situation, local finances, and banking crises in China are severe, making it uncertain whether businesses can profit or even repatriate their earnings.
Wu Jialong suggested that the best option for Taiwanese businesses is to gradually withdraw from the Chinese market and shift their focus towards Southeast Asia, Europe, the United States, Australia, Canada, and other regions.