Chi Mei says China plant will remain open

Chi Mei Corp (奇美), a closely held petrochemical company, denied reports that its plant in China either had been or would be closed by authorities upset by alleged statements by the company's chairman and founder, Shi Wen-lung (許文龍).

Local Chinese-language news-papers said mainland authorities forced the plant to close after Shi was quoted saying Taiwanese women worked willingly in brothels for Japanese troops during the World War II, and weren't sex slaves held against their will.

Chinese authorities have threat-ened various actions against supporters of Taiwan independence.

Shi is also a senior adviser to President Chen Shui-bian (陳水扁), who toned down his pro-independence views long before the presidential election last year.

Mainland authorities have not contacted the plant, said Chi Mei Vice President Hsu Chun-hua (許春華). "Nothing has changed," Hsu said. "We don't know the source of this story." Ko Chin-chun (柯進春), general manager of Chi Mei's Zhengjiang plant in Jiangsu Province, northwest of Shanghai, said the plant which employs 300 workers and opened in 1996 is operating normally.

Taipei was considering more relaxed rules on investment in China, but any moves by China to interfere with Taiwanese businesses there could jeopardize the process, local media said.

Shi's remarks on Taiwanese "comfort women" included in a recently published right-wing Japanese comic book, On Taiwan (台灣論), angered officials both in China and Taiwan. Local media said that if China takes measures to close the Chi Mei plant, Taipei may be forced to review its intention to loosen the no haste, be patient (戒急用忍) policy with regards to cross-strait investment.

But Vice Premier Lai In-jaw (賴英照) said yesterday that the "no haste" policy -- which was enacted in 1996 to hold back rapidly expanding Taiwan investments in China -- will continue and will not be affected by the controversy surrounding the Chi Mei case.