Taiwan has always viewed foreign capital with both trepidation and expectation. In his speech at a seminar on financial reform yesterday, President Chen Shui-bian (
Taiwan has scored considerable achievements in financial liberalization and internationalization, but there are also blind spots. In concrete terms, Taiwan is under pressure from economic erosion and military annexation by China. Taiwan inevitably has to put more thought into national security in the process of financial liberalization and internationalization so as to prevent a repeat of Hong Kong's situation in the run up to the 1997 handover, in which a massive influx of Chinese capital caused the territory to lose its economic independence. Worries about China have caused the pace of Taiwan's liberalization to falter.
The experience of the Asian financial crisis is another reason why Taiwan's financial authorities have been wary about easing restrictions. Taiwan came out relatively unscathed from the crisis but the government is still fearful of the aggressive profit-taking acts by international financial opportunists in the currency markets, which have caused the Asian financial crisis to spread further afield.
"It should have been done a long time ago" was KMT Chairman Lien Chan's (
Fluctuations in the NT dollar and the infiltration of Chinese capital are still the key issues in the government's financial liberalization policy. Objectively, Taiwan's environment has not improved substantially. In contrast to his cautious attitude on direct links with China, Chen's decision to ease restrictions on foreign capital is an indication that improving the economy is the top political mission. Taiwan's investment environment is still better than that of many other countries. For foreign investors Taiwan is still a worthwhile investment destination. Taiwan also needs foreign capital to fill in the gap created by the capital outflow to China and to boost the country's economic vitality.
This shift in policy emphasis from economic security to economic development is more symbolic than substantial, but the government should not underestimate the negative effects of Chinese capital infiltration and currency market fluctuations. Even though the government has said the liberalization will be complemented with a capital reporting system, this will only prevent blatant Chinese capital invasion. It will not eliminate indirect interference by Chinese capital. The financial authorities should plan more reliable safety valves to maintain Taiwan's security in the process of financial liberalization.
Saudi Arabian largesse is flooding Egypt’s cultural scene, but the reception is mixed. Some welcome new “cooperation” between two regional powerhouses, while others fear a hostile takeover by Riyadh. In Cairo, historically the cultural capital of the Arab world, Egyptian Minister of Culture Nevine al-Kilany recently hosted Saudi Arabian General Entertainment Authority chairman Turki al-Sheikh. The deep-pocketed al-Sheikh has emerged as a Medici-like patron for Egypt’s cultural elite, courted by Cairo’s top talent to produce a slew of forthcoming films. A new three-way agreement between al-Sheikh, Kilany and United Media Services — a multi-media conglomerate linked to state intelligence that owns much of
The US and other countries should take concrete steps to confront the threats from Beijing to avoid war, US Representative Mario Diaz-Balart said in an interview with Voice of America on March 13. The US should use “every diplomatic economic tool at our disposal to treat China as what it is... to avoid war,” Diaz-Balart said. Giving an example of what the US could do, he said that it has to be more aggressive in its military sales to Taiwan. Actions by cross-party US lawmakers in the past few years such as meeting with Taiwanese officials in Washington and Taipei, and
The Republic of China (ROC) on Taiwan has no official diplomatic allies in the EU. With the exception of the Vatican, it has no official allies in Europe at all. This does not prevent the ROC — Taiwan — from having close relations with EU member states and other European countries. The exact nature of the relationship does bear revisiting, if only to clarify what is a very complicated and sensitive idea, the details of which leave considerable room for misunderstanding, misrepresentation and disagreement. Only this week, President Tsai Ing-wen (蔡英文) received members of the European Parliament’s Delegation for Relations
Denmark’s “one China” policy more and more resembles Beijing’s “one China” principle. At least, this is how things appear. In recent interactions with the Danish state, such as applying for residency permits, a Taiwanese’s nationality would be listed as “China.” That designation occurs for a Taiwanese student coming to Denmark or a Danish citizen arriving in Denmark with, for example, their Taiwanese partner. Details of this were published on Sunday in an article in the Danish daily Berlingske written by Alexander Sjoberg and Tobias Reinwald. The pretext for this new practice is that Denmark does not recognize Taiwan as a state under