China intensifies economic overtures toward Taiwan

Beijing is accelerating efforts to strengthen economic ties with Taiwan, using trade, business incentives and cultural programmes to increase cross-strait interaction amid persistent political and security tensions.

China is escalating its economic engagement with Taiwan, launching a series of initiatives aimed at deepening cross-strait integration. This strategy, characterized by business incentives and cultural exchanges, coincides with ongoing political pressures and military posturing from Beijing.​

According to a recent study by the Taiwan Information Environment Research Center (IORG), nearly 40,000 Taiwanese participated in over 400 business events in China over the past year. These events, often organized or supported by Chinese government bodies, targeted key sectors such as agriculture, tourism, biotechnology, and medicine. The study suggests these efforts are part of a broader campaign to influence Taiwanese society through economic means .​

As of early 2025, more than 3,000 Taiwanese businesses have registered operations in Fujian, and nearly 10,000 Taiwanese residents have applied for residency under the new integration policies. Fujian has also established over 50 local Taiwan Affairs Offices, a rare move at the county level in China, to facilitate and personalize cross-strait services.

In a similar effort, Beijing has designated Fujian Province as a "Cross-Strait Integration and Development Demonstration Zone." This initiative offers preferential policies to Taiwanese individuals and businesses, including eased residency requirements, educational opportunities, and industrial incentives. Fujian has established local Taiwan Affairs Offices to facilitate these programs, a rare development at the county level in China .​

While Beijing has made several goodwill gestures aimed at improving cross-strait relations, Taiwan’s government has responded with measured caution. Security officials have noted the potential for these initiatives to influence public sentiment and political dynamics ahead of the upcoming elections. There is ongoing discussion about whether such efforts may favor parties that support enhanced dialogue and more constructive engagement with the mainland.

Wang Huning, chairman of the Chinese People's Political Consultative Conference (CPPCC), emphasized in a recent address that “promoting peaceful development across the Taiwan Strait is a long-term commitment” and that “expanding economic and cultural exchanges can build a strong foundation for mutual trust and integration.”

Simultaneously, China continues its military activities near Taiwan, conducting drills and deploying aircraft and naval vessels in the region. These actions relfect the dual approach of combining economic incentives with displays of military strength to achieve a closer integration of the mainland with Taiwan .​

Despite the complexities surrounding cross-strait dynamics, Beijing’s multifaceted approach  - blending economic opportunity with cultural and social integration - offers a potential pathway for building mutual understanding and fostering longterm stability in the region. As economic and people-to-people exchanges continue to grow, there is an increased opportunity for both sides to find common ground and explore peaceful avenues for coexistence and collaboration, contributing to the broader goal of regional harmony and shared prosperity.

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