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[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese media reported that Xu Shidong, chairman of Taiwan's Yuandong Group, stated that he "opposes Taiwan independence," interpreting this as a sign that the mainland's warning has been effective.

Chinese regulatory authorities previously imposed a fine of 474 million yuan (approximately 88.5 billion KRW) on two subsidiaries of Yuandong Group for violating Chinese laws. The Chinese authorities cited various reasons including environmental, production safety, fire safety, and taxation issues, but the underlying cause of the sanctions was the support of election funds to the pro-Taiwan independence Democratic Progressive Party (DPP).

[Image source=EPA Yonhap News]

The state-run Xinhua News Agency reported on the 1st that Yuandong Group Chairman Xu published an article in the Taiwanese media outlet United Daily News stating that he "has opposed Taiwan independence." Xinhua conveyed that in his article, Xu expressed support for the "One China" principle and the "1992 Consensus" (an agreement reached in 1992 recognizing one China while allowing each side to use its own interpretation). Xu also criticized Taiwanese politicians for focusing only on winning votes in elections and neglecting broader industrial strategies.

Xinhua reported that Xu questioned the pro-Taiwan independence political camp on whether suppressing the opportunities of the mainland market with its 1.4 billion population aligns with Taiwan's long-term interests.

Global Times pointed out that Xu was the largest donor to the DPP during last year's local elections in Taiwan, contributing 58 million Taiwan dollars (2.09 million USD), and stated that the mainland's sanctions serve as a warning to other Taiwanese companies supporting separatist politicians. It also claimed that Xu revealed his stance on cross-strait (China-Taiwan) relations for the first time through his article, indicating his realization of the seriousness of the issue.

Wang Jianmin, a Taiwan affairs expert at Minnan Normal University in China, said, "Yuandong Group's funding of separatist activities has led to the deterioration of cross-strait relations," adding, "We should closely observe what role Xu will play in improving cross-strait relations going forward."

Xiu Zhonghai, former dean of the Department of Social Sciences at Taiwan's Chinese Culture University, said, "Xu stated that he does not support Taiwan independence out of concern for his business interests on the Chinese mainland," and added, "The Yuandong Group incident will serve as a warning to businesspeople and sponsors secretly supporting Taiwan separatists."

Global Times criticized hardline separatists such as Su Zhenchang, head of Taiwan's Executive Yuan who is on China's blacklist, accusing them of condemning mainland businesses and entrepreneurs while accepting money from them, thereby questioning the morality of Taiwanese politicians.

Global Times emphasized that the crackdown on DPP funding by mainland authorities targeting Taiwanese companies will continue, and that Taiwanese companies not supporting separatists have no reason to worry about mainland sanctions.

Chinese media interpret Xu's article as a letter of repentance. They also self-assess that the sanctions on Yuandong Group will serve as a strong warning to other Taiwanese companies.

Regarding the sanctions on Yuandong Group, some interpret it as a political strategy by China to cut off the funding sources of the pro-independence DPP. There is speculation that China may support the pro-China Kuomintang (KMT) in the 2024 Taiwan presidential election. Many view the sanctions on Yuandong Group as the first step in election interference. Yuandong Group is known to have provided political funds not only to the ruling DPP but also to the opposition KMT.

This content was produced with the assistance of AI translation services.