Recent incidents involving Taiwanese business people in mainland China, including the arrest and trial of four businessmen on spying charges and the abduction and murder of Lin Ti-chuan and Wang Fu-ching, have again focused attention on the safety of Taiwanese investors in mainland China and added a further element of difficulty and uncertainty to future cross-strait dialogue.

On 12 August, after a five-month investigation and trial, four Taiwanese businessmen arrested in mainland China in March were convicted by the PRC authorities of "collecting information for an extraterritorial enemy organization." When the news reached the ROC it aroused concern in the government and raised fears about the personal safety of Taiwanese business people on the mainland.

The PRC's Ministry of State Security alleged that the four men-Kou Chien-ming, Han Yueh-ting, Chen Shao-yu and Chou Chang-ming-had used their "Association for Non-Governmental Chinese Cross-Strait Exchange" as a cover for intelligence activities in mainland China, including the recruitment and training of agents. According to reports by the mainland's China Central Television (CCTV), the ministry had begun monitoring the men's activities in June 1993, and had started making preparations to detain them in early 1996. But it was not until March 1998 that they were arrested on entering the mainland via Beijing. Their trial ended with Kou Chien-ming being sentenced to four years' imprisonment and being deprived of his political rights for two years. He immediately filed an appeal. The other three defendants were also found guilty, but were excused punishment on the grounds that they had "made amends."

The accusation that Kou Chien-ming worked for the Military Intelligence Bureau (MIB) of the ROC's Ministry of National Defense has been adamantly denied by the bureau. The MIB stated that every year, before the anniversary of the June 4 Tian'anmen massacre the communist authorities always contrive incidents involving "KMT spies," and that this was just such a case. Meanwhile, Straits Exchange Foundation vice-chairman and secretary-general Shih Hui-you stressed that the SEF would not sit idly by when Taiwanese business people's rights and interests were abused, but would do its utmost to provide whatever assistance was necessary. He also said that the mainland authorities extended the definition of espionage without limit, and that by accusing Taiwanese business people on any pretext they were creating an atmosphere of fear and suspicion. For this reason, SEF chairman Koo Chen-fu also called on the PRC authorities to respect arrested Taiwanese business people's rights, and hoped they would take note of the incident's effect on cross-strait relations, particularly trade.

Actually, Kou Chien-ming and his associates are not the first Taiwanese business people to have been accused of espionage. In December of last year, Wang Kou-tu was sentenced to 11 years in prison by the mainland authorities. The PRC alleged that having been unsuccessful in business after retiring from the army, Wang, an officer training school graduate, had been recruited by the MIB to engage in activities on the mainland under the guise of investing. According to Beijing, this is the standard formula by which Taiwanese business people are used to infiltrate the mainland. Although the ROC lifted martial law long ago and cross-strait commercial and cultural exchange is burgeoning, as long as the two sides remain in a hostile standoff they seem still to be under the dark shadow of an espionage war.

While many people were busy trying to assist Kou Chien-ming and the other accused, and intelligence departments on both sides of the strait were hurling accusations at each other, on July 27 news broke that Kaohsiung City councilor Lin Ti-chuan and her friend Wei Tian-kang, a Taiwanese engaged in business activities on the mainland, had been kidnapped in Dalian in northeast China. To control them, their kidnappers injected them with large doses of drugs, and Lin died from the effects of these on the morning of 29 July. Wei escaped while the criminals were taking Lin to hospital.

Meanwhile, Taiwanese businessman Wang Fu-ching went missing in Guangdong, and his body was discovered two weeks later. The mainland police believe the killers may have been Taiwanese businessman Chen Jung-piao and mainland businessman Lin Yaohua.

At the time the two cases occurred, Li Yafei, vice-chairman of the mainland's Association for Relations Across the Taiwan Strait (ARATS), was visiting Kaohsiung City. Kaohsiung mayor Wu Tun-yi, and Hsieh Chang-ting, the Democratic Progressive Party (DPP) candidate for Kaohsiung City's upcoming mayoral elections, both personally asked Li to assist. Cheng Chien-jen, director-general of the ROC Government Information Office, said the PRC authorities should realize how deeply shocked the Taiwanese public were by the case, especially since Lin Ti-chuan was a Kaohsiung City councilor. Inappropriate handling would be certain to have a negative impact.

Li Yafei, whose visit had thus far been going smoothly, said that when ARATS received formal notification from the SEF, it would deal with it immediately. However, soon afterwards Li hurriedly left Taiwan, and Tsai Chin-mei, deputy head of the SEF's tourism section, who had hoped to travel to the mainland to assist Lin's family members, was refused entry. This, and the PRC authorities' close control over all aspects of the arrangements for the release and return of Lin's body, prompted former DPP chairman Hsu Hsin-liang to say that the case had already tarnished China's international image, and done even greater damage to Taiwanese people's feelings towards China.

Looking back at the history of Taiwanese business involvement in mainland China in the wake of the recent cases, there does appear to be cause for concern. Since businessman Hsu Chin-hsing was arrested last year on bribery charges, there has been no further news of him. Late last year Lin Ming-tsung, an investor in a mainland plastics factory, was kidnapped and US$1 million demanded in ransom; fortunately, he was freed without harm. On 14 April this year Yeh Jung-fu, a garment industry businessman, was robbed and killed by assailants who broke into his home. . . .

Following Lin Ti-chuan's death, the SEF released figures stating that from 1991 to April 1998 it had been informed of 184 cases in which the personal safety of Taiwanese business people on the mainland had been compromised. These included 30 deaths, 43 cases of injury, robbery or extortion, 26 cases of kidnapping or unlawful detention, 48 cases of freedom of movement being restricted due to pending investigations, 27 missing person reports and 10 other cases. However, it is generally believed that the real figures are higher than statistics indicate.

SEF trade section chief Liao Yun-yuan stated that the highest proportion of incidents occurred in Guangdong, Fujian and Hainan. This was probably related to the rapid commercial development of the coastal regions, and the accompanying growth in their migrant populations. In view of the deteriorating law and order situation on the mainland, Jeffrey Koo, chairman of the Chinese National Association of Industry and Commerce, and Wang You-tseng, chairman of the General Chamber of Commerce of the Republic of China, both advised Taiwanese business people to think carefully before investing in the mainland.

Taiwanese firms investing in the mainland also face many business-related problems. According to a 1996 survey by the Chinese Professional Management Association, Taipei, 75% of Taiwanese firms investing in the mainland stated they had been involved in commercial disputes. The association's chairman, Chen Ming-chang, also said that in recent surveys in Shenzhen and Dongguan, this figure was over 60%.

Nonetheless, the flow of Taiwanese investment into the mainland shows no signs of abating. ROC Minister of Economic Affairs Wang Chih-kang stated that Taiwanese investment in the mainland now accounted for 42% of the ROC's total overseas investment, and this exceeded the warning level for investment in a single region.

Legislative Yuan members have proposed that to respond to the problems which may confront the many Taiwanese investors in the mainland, the ROC government should establish security service centers in areas where large numbers of them are concentrated. Wang Chih-kang stated that the MOEA's advisory network for Taiwanese firms would be extended, and in addition to providing information, its ability to provide emergency assistance would be enhanced. ROC industrial organizations such as the Chinese Chamber of Commerce and Industry (CCCI) and the Chinese National Federation of Industries have also suggested many amendments to the PRC's draft revision of the by-laws to its "Law on the Protection of Investments by Taiwanese Compatriots," which was recently put forward for comment by the mainland's Taiwan Affairs Office. For instance, under existing regulations Taiwanese firms involved in disputes with mainland enterprises or individuals can apply to the relevant local government departments for mediation, but the CCCI suggested that they should be able to apply directly to the authorities in charge of Taiwan affairs, to prevent buck-passing between different agencies.

This autumn, as preparations proceed for the slated meeting between SEF chairman Koo Chen-fu and ARATS chairman Wang Daohan, controversy over the recent cases is sure to continue. Koo Chen-fu stressed that there is no reason why any issue relating to the people's rights and interests should not be raised with ARATS. Whatever the outcome of their meeting, cross-strait interaction is becoming ever closer, and everyone hopes that the authorities on both sides can actively address issues of this kind, so that future interaction can be safer and more harmonious.

p.79

Led by a Taoist priest striking a pair of cymbals, Lin Ti-chuan makes her last journey home.