BUSINESS between Taiwan and China will return to normal by the middle of the year as tension across the strait eases after the Taiwan president's inauguration ceremony, a leading Taiwan businessman says.
Taiwan Businessmen's Association (HK) vice-chairman Alexander Pann said yesterday trading volume between Hong Kong and Taiwan would dwindle by 20 to 30 per cent in March and April as the escalating military manoeuvres across the strait hit business confidence and transportation.
'Transportation was disrupted. Some Taiwanese who previously relied on the mainland for processing work would save the trouble by placing orders to factories in other Southeast Asia countries such as Singapore and Indonesia,' he said.
Some Taiwan businessmen would hold back their investments in China.
These changes could take place as Taiwanese were more diversified in their businesses and investment than ever before, Mr Pann said.
Things would start to get back to normal after the president's inauguration in May.
