MAC Entrusts Scholars with the Duty to Undertake Risk Analysis on China
The social order in China has deteriorated in recent years, and crimes against the safety of Taiwanese businessmen in China have continued to increase. There were 67 incidents involving the safety of Taiwanese businessmen in 2001, 91 incidents in 2002, 107 incidents in 2003, and 109 incidents in 2004. This March, Taiwanese businesswoman Li Yu-mei was killed by a taxi driver in the Dongguan district of Guangdong. Li’s death was yet another addition to the number of Taiwan businessmen killed in China.
The Mainland Affairs Council (MAC) has entrusted scholars with the duty of conducting risk assessments on China in areas such as social stability, business and investments, travel and education, and living environment. This is to provide an in-depth analysis of the risks in China as well as foster a deeper and more diverse understanding of China. Such an undertaking will likely prevent misjudgment of social and economic situations that would endanger life and cause property damages. The research results show that protest demonstrations, “three agricultural issues” (agriculture, rural areas and farmers), unemployment, issues on the “three disparities” (rural-urban, rich-poor and East-West), social order, and public safety make up the six major indexes that severely affect China’s social stability.
Both official figures and research findings of think tanks reveal that with regard to demonstrations and protests, the number of incidents, participants, and social classes involved have increased annually. There were 58,000 demonstrations and protests in 2003, an increase from 8,700 incidents in 1993. Between 2003 and 2004, there were more than 10 demonstrations and protests that involved more than 10,000 participants. On the average, there were 820,000 people marching through the streets in protest daily, which severely undermined social order and stability in China.
With regard to social order, due to significant growth in the Chinese economy, the disparity between rich and poor as well as unemployment, have become increasingly serious problems. The “three disparities” have led to serious social confrontation and an increase in the number of organized crimes. Statistics show that the number of people affiliated with organized crime is approximately one million people. Criminal organizations account for over 70 percent of the organized crimes as well as 95 percent of smuggling and illegal drug trades. Criminal organizations engage in illegal drug trades, control the sex industry, and undertake in other illegal activities by infiltrating political parties and using legitimate undertakings as a façade. As a result, there are increased feelings of insecurity amongst the people of China.
Due to complex social issues and deteriorating social order, mainland China is no longer an appropriate option for foreign investment. Public opinion surveys in China show that the sluggish social climate and deteriorating social order are issues that most concern people the most. The scholars recommend that the Chinese government start eliminating unfairness in the society and put more efforts in resolving extortion and corruption, in order to improve social order and curb the increase in protests and demonstrations. Before investing in China, Taiwanese businessmen should first consider the risks, such as deteriorating social order and the lack of the rule of law, in order to minimize losses and reduce negative impacts.