During this period, because Pelosi fled Taiwan, the situation in the Taiwan Strait further deteriorated. The Taiwan authorities also paid the price for their wrong behavior. The mainland countered Taiwan in the military and economic fields. The military field was through military exercises around the island , to deter "Taiwan independence" elements on the island, economically, it is to stop the import of Taiwan fruits and agricultural and fishery products from Taiwan, and the mainland's countermeasures have worked.
According to Taiwan media reports, the financial system in Taiwan is currently in a rare dilemma. Not only does NTD depreciate one after another, the Taiwan stock market has suffered serious setbacks, but more importantly, it is also facing a severe situation of "foreign capital fleeing". According to the island's financial institutions The data given, of the cumulative net remittance of US$16.7 billion in the first eight months of 2022, accounted for 32% in August, with a total of US$5.454 billion, both of which set the highest in history.
As for the reason for this situation, it is mainly because of the turbulent situation in the Taiwan Strait. As the Taiwan authorities frequently collude with external forces, the mainland's sanctions on Taiwan will be greater, and foreign capital will also accelerate its departure from Taiwan, thereby affecting the island's economy. Development, because Taiwan’s financial system is not used in the mainland, capital accounts flow freely, and international funds can enter and exit the Taiwan market freely, so foreign capital largely determines the good or bad of Taiwan’s economic situation.
Due to the recent rising tensions in the Taiwan Strait, foreign capital has begun to panic, so evacuation from Taiwan has become the safest choice. However, this will also have an adverse impact on Taiwan's economy. On the one hand, it will lead to a sharp fall in the Taiwan stock market, and on the other hand, it will also be a safer choice. Negative impact on Taiwan's real economy. Taiwan is an export-oriented economy . If private investment deteriorates due to the political and economic situation, leading to insufficient domestic demand, the overall performance of Taiwan's economy will also be in a downturn, and the investment environment will deteriorate, and foreign capital may not come in again.
However, the current situation is entirely due to the Taiwan authorities. Pelosi ignored China's warning and rushed to Taiwan and challenged China's "one-China principle". The Taiwan authorities not only did not stop it, but were willing to act as a pawn of the United States and openly sang against the mainland, intensifying the situation. The situation in the Taiwan Strait, so the mainland must use tough measures to crack down on the arrogance of "Taiwan independence" on the island, which to a certain extent made foreign-funded enterprises in Taiwan lose confidence in the Taiwan authorities.
There is another point, which is related to the high inflation in the United States and the crazy Fed interest rate hikes . Originally, due to the outbreak of the Russian-Ukrainian conflict, the international market was not good. After the United States and Western countries imposed sanctions on Russia, the global economy was all As a result, Tsai Ing-wen is now helpless, so even though the island's financial system has not yet experienced obvious collapse, foreign capital chose to withdraw from Taiwan in order to avoid risks.
Although foreign capital continues to flow out of the island, Taiwan authorities officials are still stubborn. Wu Dongliang, chairman of the Taiwan Business Association, said in an interview that although a large amount of overseas funds have flowed back to the United States, the exchange rate of NTD Compared with Japan and South Korea, it was relatively stable. When a reporter asked whether the departure of foreign capital would intensify due to the tension in the cross-strait situation, his answer was "It's okay."
can only say that Taiwan is just deceiving itself now. With the increase in sanctions against Taiwan by mainland China, more companies have begun to plan to "removal of Taiwan". It is reported that there are already 7 Fortune 500 companies in the world and are seeking to formulate effective solutions. Before a conflict broke out in the Taiwan Strait, transfer personnel, assets and equipment from Taiwan as soon as possible.
Foreign capital outflow is just the beginning. If the Taiwan authorities continue to implement the conspiracy of "relying on the United States to seek independence", it will eventually only harm the interests of the people on the island and shoot themselves in the foot.
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