China fast-tracks the approval process for the Shanghai listing of a core unit of Taiwan’s Hon Hai Precision Industry (also known as Foxconn). This points to efforts by the Chinese government to lure Taiwanese businesses away from the island, putting economic pressure on its pro-independence government.
Chinese authorities are expected to green-light Foxconn’s application much quicker than usual. While Foxconn will benefit from the listing and enhance its presence in China market, the Taiwanese government accuses China of hollowing out its industry and increasing its dependence on the mainland.
Beijing has also introduced a range of incentives to lure Taiwanese businesses across the strait and has stepped-up military drills around the island, over which it claims sovereignty. While also working to withdraw support from countries that support Taiwan’s independence.
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