President Ma Ying-jeou (馬英九) has said that, “McDonald’s, KFC and Starbucks have come over to Taiwan,” that “McDonald’s has opened 390 branches in this nation, it has been here for 30 years, employing over 200,000 people. When it first came to Taiwan, people were concerned about the impact it would have on small traditional food outlets...opening up makes Taiwan more competitive... being worried about it is like Chicken Little panicking the sky will fall.”
If Ma wants to use Uncle Sam’s McDonald’s, KFC and Starbucks as examples, then let us run with that.
Is the entire staff of these companies, from management down to counter staff, comprised of foreigners, paid more than double the average local wage, unable to speak the local language, or are they Taiwanese who can communicate with their customers? Would they be able to employ staff when they first came over here had they offered less than the going rate? Indeed, have the owners of McDonald’s, KFC and Starbucks suppressed salary levels in Taiwan? Have they not given people in Taiwan jobs?
However, what if today, there were Chinese investors opening stores selling hamburgers, fried chicken, coffee, etc? Workers’ salaries would fall and if not, then there would be no job creation. Businesses are not charities — they are profit-seeking enterprises. To increase profits, slashing wages is the best way.
If you think NT$22,000 is low, then what do you think a boss from China, where the average wage is typically a quarter of that, thinks? They would consider it too much, not too little. If they are to make a profit, they would have to insist upon pay cuts of 20 or 30 percent. The Taiwanese will just have to “be good” and accept it. If they say no, Chinese bosses will find it easy to bring in others happy just to have a job. It would only take the price of a plane ticket to bring people — management and staff alike — from China.
What would happen if Chinese investors were allowed to open stores here is they would make the most of the dual advantages of the lack of language barrier and a low domestic salary level. If they could not employ local staff for less, they would import Chinese to replace them. Bad money chases out good.
This is why Taiwanese are so against the opening up of the domestic service sector to Chinese employers. It is not just that Taiwanese are concerned, it is more that they are up in arms.
Even more worrying is that, concealed within the service Trojan agreement, it says that Chinese immigrants and spies need only prepare the sum of US$300,000 — money which can be used repeatedly — and they can enter Taiwan, perfectly legally, for three years, after which their stay can be extended for another three years, then another, indefinitely.
From a national security perspective, what chance does Taiwan have?
If Taiwan is to sign a service trade agreement, why would the first be with the only nation in the entire world that has ambitions on Taiwan’s sovereignty?
Nobody wants Taiwan to close itself off from the world, or to oppose the nation’s engagement with globalization. However, what is objectionable is tying Taiwan to China, and equating China with the rest of the world.
If Taiwan is to sign a service trade pact, why not engage with the US, Canada, New Zealand, Japan, Australia or the EU — countries and regions that do not harbor hostile intent toward the nation? Nobody would oppose that.
China, rather than being the first country we turn to, should be the very last.
Chang Kuo-tsai is a former associate professor at National Hsinchu University of Education and a former deputy secretary-general of the Taiwan Association of University Professors.
Translated by Paul Cooper
With its passing of Hong Kong’s new National Security Law, the People’s Republic of China (PRC) continues to tighten its noose on Hong Kong. Gone is the broken 1997 promise that Hong Kong would have free, democratic elections by 2017. Gone also is any semblance that the Chinese Communist Party (CCP) plays the long game. All the CCP had to do was hold the fort until 2047, when the “one country, two systems” framework would end and Hong Kong would rejoin the “motherland.” It would be a “demonstration-free” event. Instead, with the seemingly benevolent velvet glove off, the CCP has revealed its true iron
At the end of last month, Paraguayan Ambassador to Taiwan Marcial Bobadilla Guillen told a group of Chinese Nationalist Party (KMT) legislators that his president had decided to maintain diplomatic ties with Taiwan, despite pressure from the Chinese government and local businesses who would like to see a switch to Beijing. This followed the Paraguayan Senate earlier this year voting against a proposal to establish ties with China in exchange for medical supplies. This constituted a double rebuke of the Chinese Communist Party’s (CCP) diplomatic agenda in a six-month span from Taiwan’s only diplomatic ally in South America. Last year, Tuvalu rejected an
US President Donald Trump’s administration on Friday last week announced it would impose sanctions on the Xinjiang Production and Construction Corps, a vast paramilitary organization that is directly controlled by the Chinese Communist Party (CCP) and has been linked to human rights violations against Uighurs and other ethnic minorities in Xinjiang. The sanctions follow US travel bans against other Xinjiang officials and the passage of the US Hong Kong Autonomy Act, which authorizes targeted sanctions against mainland Chinese and Hong Kong officials, in response to Beijing’s imposition of national security legislation on the territory. The sanctions against the corps would be implemented
US President Donald Trump on Thursday issued executive orders barring Americans from conducting business with WeChat owner Tencent Holdings and ByteDance, the Beijing-based owner of popular video-sharing app TikTok. The orders are to take effect 45 days after they were signed, which is Sept. 20. The orders accuse WeChat of helping the Chinese Communist Party (CCP) review and remove content that it considers to be politically sensitive, and of using fabricated news to benefit itself. The White House has accused TikTok of collecting users’ information, location data and browsing histories, which could be used by the Chinese government, and pose