President Ma Ying-jeou (馬英九) was “elected” chairman of the Chinese Nationalist Party (KMT) on Sunday with no competitor and 92 percent of about 300,000 votes cast. The following day, Chinese President Hu Jintao (胡錦濤), clearly satisfied with the result, broke 60 years of diplomatic ice by sending Ma a congratulatory telegram in which he pompously said: “I hope our two parties can continue to promote peaceful cross-strait development, deepen mutual trust, bring good news to compatriots on both sides and create a revival of the great Chinese race.”
In an article on the Hu letter on Monday, a wire agency added that Ma’s “election” and Hu’s telegram “helped boost Taiwan stocks … which rose 0.79 percent … to end above 7,000 points for the first time in 11 months.”
In recent months, wire agencies and analysts have tended to equate rises in the Taiwanese market with “improved relations with China” and to blame drops on Democratic Progressive Party (DPP) “troublemakers.” A subsequent telephone interview with the agency in question confirmed that the conclusion was based on the assessments of financial analysts working at local and foreign banks.
What the agency failed to say is that on Monday — to quote The Associated Press — “Asian markets extended their winning streak … as hopes company earnings will rebound along with global growth continue to drive investors into stocks.” (Tokyo’s Nikkei 225 stock average rose 144.11 points, or 1.5 percent, to 10,088.66; Hong Kong’s Hang Seng rose 268.83, or 1.4 percent, to 20,251.62; South Korea’s KOSI gained 1.4 percent; and so on.)
What the agency also did not mention was that (a) the Taiwan Stock Exchange opened flat that morning, and (b) investors had known for quite a while that Ma would win the “election.” While recognizing that financial analysts, when contacted by wire agencies, cannot remain silent and must attribute a market’s rise and fall to something, linking Ma’s “election” or the Hu telegram to a 0.79 rise in the local bourse when region-wide macroeconomic factors and agreement on better global economic prospects far better explain the modest rise is dishonest.
The reflex to use cross-strait developments as a proximate cause of stock performance in Taiwan is so prevalent that one wonders if some are not letting agendas interfere with assessments. For example, On Oct. 24 last year, Deutsche Presse-Agentur (DPA) reported that the Taiwan Stock Exchange was down nearly 3 percent as the result of a rally organized by the “right wing” and “separatist” DPP, failing to mention that on the same day, all Asian markets were markedly down: Japan by 7 percent and South Korea by 9 percent, among others.
Then, on Oct. 30, DPA said Taiwan’s bourse was up nearly 6 percent on “positive signs in Taiwan-China ties” ahead of “important dialogue from Nov. 3 to Nov. 7 [a visit by China’s envoy] to discuss expanding ties.” Again, the agency did not say that on the same day the Hong Kong stock exchange was up 12.8 percent, Tokyo almost 10 percent and Seoul 4 percent, while Australia, Singapore and the Philippines added 4 percent or more — developments that had far more to do with macroeconomic factors than cross-strait ties.
It is increasingly evident that big business and financial investors — at least in certain sectors that stand to benefit — favor cross-strait rapprochement, if not eventual unification. By invariably portraying rising stock value in Taiwan as a direct result of Ma’s successes — and conversely, by blaming devaluation on DPP shenanigans — these analysts are politicizing their assessments and undermining their credibility, while helping the KMT and the Chinese Communist Party take Taiwan closer to economic ultradependence and unification.
J. Michael Cole is a writer based in Taipei.
The US on Friday hosted the second Global COVID-19 Summit, with at least 98 countries, including Taiwan, and regional alliances such as the G7, the G20, the African Union and the Caribbean Community (CARICOM) attending. Washington is also leading a proposal to revise one of the most important documents in global health security — the International Health Regulations (IHR) — which are to be discussed during the 75th World Health Assembly (WHA) that starts on Sunday. These two actions highlight the US’ strategic move to dominate the global health agenda and return to the core of governance, with the WHA
Just as the cause of the Kursk submarine disaster remains shrouded in mystery — the nuclear-powered Russian submarine suffered an explosion during a naval exercise on Aug. 12, 2000, and sank, killing all 118 crew onboard — it is unlikely that we will ever get to the bottom of the sequence of events last month that led to the sinking of the Moskva guided missile cruiser, the flagship of the Russian navy’s Black Sea fleet. Ukraine claims it struck the vessel with two missiles, while Russia says ammunition onboard the ship exploded and the ship tipped over while being towed
Elon Musk, the CEO of Tesla and SpaceX, was “amazed” and “enthralled” by Chinese who rise at 3am for work. He praised it as a manifestation of talent and a good work ethic. Truthfully, that praise and statement about China, no matter its motivation, is nothing more than a round of applause for the atrocities inflicted by dictators and the spiritual anesthesia of their victims. “There’s just a lot of super-talented, hard-working people in China that strongly believe in manufacturing,” Musk said in an interview with the Financial Times on Tuesday. “And they won’t just be burning the midnight oil, they’ll be
Ever since the dissolution of the Soviet Union, the Chinese Communist Party (CCP) has lived in a constant state of fear that it might share the fate of its former mentor and ideological bedfellow. To stay in power, the party had to strike a difficult balancing act: maintaining a tight grip on information, while simultaneously opening up to the world under the program of economic reform initiated by former Chinese leader Deng Xiaoping (鄧小平). The balancing act became increasingly difficult with the popularization of the Internet in the mid-1990s. The CCP could not block Chinese citizens from accessing the Internet, as
RSS