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Taiwan investors fined in China
AFAR
10/2/2002

According to local media reports, the Chinese authorities have ordered hefty fines of 2.9 million US dollars against about a dozen Taiwanese factories in Mainland China for labeling their products as “Made in Taiwan” instead of “Made in China.” They were allegedly punished for breaking The Quality and Consumer Protection Regulations, which mandate that all foreign firms must use the label “Made in China” for products manufactured in China.

These Taiwanese companies, though not publicly named, are electronic product makers. This practice of intentional mislabeling is apparently an attempt to boost the price and credibility of the goods they are making in China. Since 1987, Taiwanese investors have injected over 70 billion US dollars across the Taiwan Straits. Many foreign investors, however, have been very frustrated by the fact that the sales profit from selling goods made in China is approaching the baseline costs. The same products with labels “Made in Taiwan” will at least guarantee 5% to 15% more profit.

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