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"First, their increasing manpower costs increase their cost of doing business in China. This may at first seem bad for China's competitiveness but, in the longer term, higher wages also mean that companies have a more productive, higher skilled labor pool to hire from," said Yu. "This would allow them to move up the value chain."

"Governor Newsom presented a new proposal that represents a significant retreat from the State's initial vision and commitment and frustrates the purpose for which Federal funding was awarded," read the letter outlining the case for cancelling the money.

"For reasons we all know, the agreement on service trade under the ECFA was signed but failed to be implemented, and following negotiations about the ECFA were forced to stop," Ma said when commenting on Taiwan's mainland affairs office's recent statement on the ECFA.

"HNA Group extends deepest condolences to Mr. Wang's family and many friends. Together, we mourn the loss of an exceptionally gifted leader and role model, whose vision and values will continue to be a beacon for all who had the good fortune to know him, as well as for the many others whose lives he touched through his work and philanthropy," HNA's board and management team said in a statement.

"From this house, my ancestors developed the tea trade with businesspeople from as far away as Russia in the Qing Dynasty (1644-1911)," said Zhao Xiaohong, owner of the inn. "But the locals seldom saw foreigners here in the old days. Nowadays, half of my guests are from Europe."