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Taiwan Bike Companies: Withdrawal from China?

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TAIPEI, Taiwan (December 7) – According to a recent report of the China Economic News Service, more and more Taiwanese bicycle makers in mainland China are planning to restart their production lines on the island to diversify their operating risks, as the mainland’s advantage of low operating cost is losing steam. Yang Yin-ming, chairman of […]

TAIPEI, Taiwan (December 7) – According to a recent report of the China Economic News Service, more and more Taiwanese bicycle makers in mainland China are planning to restart their production lines on the island to diversify their operating risks, as the mainland’s advantage of low operating cost is losing steam.
Yang Yin-ming, chairman of Kenda Rubber Ind. Co., Ltd., told the China Economic News Service that an increasing number of Taiwan bicycle makers in mainland China are thinking of renewing production on the island ten years after moving their production lines to the other side of the Taiwan Strait. Yang cited two major reasons for the latest development. First is that both labor and land costs in mainland China are rising rapidly, and second is that anti-dumping charges in Europe and the US on products from China are an additional operating risk for the mainland.
The China Economic News Service report states that Taiwan will keep an annual capacity of four million bikes as land prices and labor costs did not rise significantly in recent years, so that overall production costs in Taiwan and mainland China are getting closer. (MH)

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