As the US-China Trade War continues to intensify and many observers are predicting it will turn into a protracted war of attrition, Taiwanese companies operating in China are one after another heading for the exit, turning to Southeast Asia, the US or returning to Taiwan.
According to Minister of Economic Affairs Shen Jong-chin, the ministry is currently aware of 35 Taiwanese businesses that intend to “reshore” production to Taiwan, which includes 25 publicly-listed companies the Ministry of Economic Affairs (MOEA’s) Industrial Development Bureau is aware of, as well as 10 smaller-sized companies known to the MOE’s Department of Investment Services. Additionally, over 20 Taiwanese businesses plan to relocate to Southeast Asian countries. Department Director-General Chang Min-pin says that the ratio of China-based Taiwanese businesses looking to relocate to Southeast Asian countries or Taiwan is currently 45:55. The main considerations driving relocation decision-making are sufficient availability of land and labor and whether there are readily available supply chain clusters.
Chang says that Taiwanese businesses are adopting a phased approach in their response to increased friction between between Washington and Beijing. In the short-term businesses are considering whether to shift production capacity, however in the medium-to-long term, the location of new production lines and entire production bases are both up for consideration. Which course of action to take is invariably dependent on whether supply chains are able to be relocated in their entirety, which would require manufacturers to negotiate with all of their suppliers and customers. A consensus must be achieved between all parties before they are able to relocate production.
Photo: Nien Miao-yun, Liberty Times
According to Chang, the completeness of Taiwan’s supply chains and its close proximity to China means that manufacturers will find it relatively easy to relocate production back to Taiwan. Chang adds that Taiwan is an excellent choice for businesses whether they intend to source a new supply chain in Taiwan or continue working with existing suppliers which have yet to move out of China.
However, the cost of land in Taiwan is relatively high and businesses will also have to deal with other challenges, including importing labor from abroad. Chang emphasizes that some large Taiwanese manufacturers already operate manufacturing plants in Taiwan, while smaller-sized businesses will find that it is relatively easy to acquire land and set up a water and electricity supply. Therefore, if companies are able to satisfy their labor requirements, says Chang, then they should find “reshoring” to Taiwan is in fact a smooth process.
By comparison, if Taiwanese businesses relocate to Southeast Asian countries such as Indonesia, India or Thailand, one consideration worth bearing in mind is that it may not be possible to move entire supply chains. Chang says that a supply chain cannot be magicked out of nowhere and transportation lines will necessarily be longer. If a manufacturing company’s upstream and downstream suppliers remain in China, the problem of increased transportation costs will also need to be factored in, says Chang.
As for Taiwanese manufacturers relocating to the US, Chang says that due to the relatively high costs involved, only companies with a truly global presence are able to shoulder the financial burden, such as Formosa Plastics or Hon Hai Precision Industry Co (also known as Foxconn). Since regulations and requirements differ from state-to-state in the US, Chang says the MOEA’s Industrial Development Bureau provides help to Taiwanese companies such as obtaining information, negotiation assistance and facilitating Taiwanese companies’ participation in US investment events such as the recent Select USA investment summit.
(Liberty Times, translated by Edward Jones)
Foxconn is a Taiwanese multinational electronics contract manufacturing company. It is the world’s largest maker of computer components and assembles products for Apple, including the iPhone and iPad, as well as a wide range of products for other major technology companies.
Foxconn is the largest private employer in Taiwan, although most of the its manufacturing happens in China, where the company operates 12 factories across nine cities. The largest of Foxconn’s manufacturing facilities is located in Longhua Town, Shenzhen, and this is where the majority of Apple’s iPhones are assembled.
The factory hit the headlines in 2010 when a spate of worker suicides occurred, with 14 employees taking their own lives. There have been repeated allegations of poor working conditions, low wages, beatings by security guards, and enforced overtime at the facility.
In October, 2012, the company admitted 14-year-old children had worked at another of the company’s facilities in Shandong Province.
(Edward Jones, Taipei Times)
1. intensify phr.
越演越烈 (yue4 yan3 yue4 lie4)
2. war of attrition phr.
持久戰 (chi2 jiu3 zhan4)
3. head for the exit phr.
出逃 (chu1 tao2)
4. supply chain phr.
供應鏈 (gong1 ying4 lian4)
5. production capacity phr.
產能 (chan3 neng2)
6. which course of action to take phr.
何去何從 (he2 qu4 he2 cong2)
7. magicked out of nowhere phr.
從無到有 (cong2 wu2 dao4 you3)
Pets are an inseparable part of people’s lives in the modern world. About 65 percent of US households have at least one pet. On a psychological level, pet companionship can bring better psychological wellbeing; on a biological level, our furry friends can boost human immunity. According to a report in Psychology Today, a review carried out by researchers from the UK’s University of Manchester found that the companionship of pets can result in better psychological wellbeing for people with mental health conditions. The diabetes research center of the University of Toronto’s Mount Sinai Hospital analyzed data from over 3 million people,
A: Hello, I’d like to book a table for two please. For 7 o’clock, if possible. B: Certainly, sir. Let me see if I can fit you in. I’m afraid we’re fully booked at that time, but we do have a space at 8pm. A: No problem, 8pm will be fine. B: Thank you. I‘ve reserved you a table for two for 8pm. Just to let you know, we operate a “bring your own” policy for wine, and corkage is NT$50 per bottle. A: OK. See you later on. A: 你好，我想要訂位，兩個人，方便的話晚上七點。 B: 好的，先生。讓我看看能不能幫您安排座位。不好意思，我們那段時間的訂位滿了，不過晚上八點還有空位。 A: 沒問題，晚上八點可以。 B: 謝謝您。我幫您預約晚上八點，兩個人的座位。另外，提醒您本餐廳關於「自行帶酒」的規定，每瓶酒酌收新台幣五十元開瓶費。 A: 好的。我們晚點見。 （Edward Jones,
Let’s dine out tonight (3/5) 今晚我們去餐廳吃飯吧（三） A: Hmm. . . I can’t decide what to order. I’m hesitating between a lamb rogan josh or a beef vindaloo. B: Well, let’s order both and share the dishes. We can also order the tandoori king prawns that I was just eyeing up. A: The prawn dish will perfectly complement the bottle of Australian Chardonnay that I’ve brought along. It’s a great wine, with notes of peaches and lemongrass. B: Cool! Let’s also order some butter naan bread and pilau rice for two. A: 嗯……我無法決定要點哪一道菜。我正在猶豫要點喀什米爾羊肉咖哩，還是辛辣香料牛肉咖哩。 B: 啊，那我們兩個都點，然後分著吃吧。我們還可以點一份坦都里香料烤明蝦，我剛剛一直在看這道菜。 A: 這道明蝦應該能完美搭配我帶來的這瓶澳洲夏多內白葡萄酒。這瓶酒真的很棒哦，帶有桃子和檸檬草的香氣。 B: 酷！那我們也點一些奶油烤餅，和兩人份的香料米飯吧。 （Edward Jones, Taipei Times／台北時報章厚明譯） WARNING: Excessive consumption of alcohol can damage
Literary circles have been celebrating the legacy of late writer Eileen Chang, who would have turned 100 on Wednesday next week. Born in Shanghai, the legendary writer shot to fame in her 20s, and continued to write after moving to Hong Kong, and then the US, in the 1950s. Chang is one of the greatest female Chinese writers, and her classic works include Love in a Fallen City, The Golden Cangue, and The Red Rose and the White Rose. Many of her novels, such as Lust, Caution, were adapted into films and TV drama series. Based on Chang’s novel Aloeswood Incense