Editorial: Opening to the enemy

With Beijing cracking down on "pro-green" Taiwanese businesspeople and entertainers, it has become clear that it is trying to realize political concessions via economic sanctions. This should be a cause for concern in political and business circles.

At a conference last Sunday, former president Lee Teng-hui (李登輝) spoke the truth about Beijing's mentality -- it abhors the democracy and freedom that Taiwan enjoys. The reason is simple: a free, democratic Taiwan is like a mirror that reflects the ugly face of the Chinese Communist Party (CCP). Given this contrast, it is only natural that China should see Taiwan as an enemy and seek to destroy it.

Both the Chinese Nationalist Party (KMT) and the Democratic Progressive Party (DPP) administrations have failed to implement the "no haste, be patient" policy Lee advocated eight years ago. As a result, many businesspeople brushed off the warnings and rushed to invest in China. But many of the ill consequences that Lee predicted would happen have come to pass.

For example, Lee predicted that by investing in China to expand production, Taiwanese business-people would eventually get caught up in a price war which would destroy their profit margins.

Second, Lee said, the outflow of industry to China would result in a sharp fall in the domestic demand for labor, raising Taiwan's unemployment rate. He also said that China would endeavor to achieve political ends through economic means by keeping the political affiliations of individual companies under tight control -- as the recent Chi Mei incident illustrates.

It is a matter of some regret that, according to figures released by the Ministry of Economic Affairs, there has been a significant annual increase in Taiwanese investment in China since the DPP came to power in 2000. In 2002, Taiwan overtook Japan to become China's second-biggest source of foreign investment. This increase is largely a result of the Chen administration's "active opening, effective management" (積極開放,有效管理) strategy. To critics, this was no more than a euphemism for removing restrictions on Taiwanese investment in China, leaving local businesses to take care of themselves. It is ironic that despite this toadying Beijing has not shown one iota of goodwill, and the number of missiles targeting Taiwan has continued to increase.

Hong Kong was returned to China in 1997, and since that time its fledgling democracy has been retreating to such an extent that 500,000 people took to the streets in protest last July. With many Hong Kong businesspeople relocating factories and transferring investment to China, academics based at Hong Kong Polytechnic University have indicated that personal income in Hong Kong has fallen to 1995 levels and that unemployment rose to an all-time high of 8.8 percent in May last year. Is Taiwan heeding their discomfort?

Beijing sees Taiwanese businesses as weapons in the campaign for unification. Those who do not obey are regarded as "poisonous weeds" to be rooted out. This means that not only are businesspeople expected to give their money to China, they are also expected to forego their ability to think critically.

Can our government, which professes with its every breath to love Taiwan, continue to allow factories and money to be relocated to China? It is an absurdity that the DPP government is lending support to its enemies in this economic war, and it is no surprise that Lee has been forced to reprimand the administration.