Taiwan `solid,' `vibrant' says President Chen

President Chen Shui-bian (陳水扁) denied yesterday that Taiwan is degenerating, dismissing the concept as "unfounded."

Chen said during an inspection tour of the Taiwan Textile Federation (紡拓會) that some people have deliberately spread the concept of "Taiwan degeneration" amid the current domestic economic slowdown.

"Such a claim is unthinkable in view of Taiwan's solid economic foundation and vitality," Chen said, adding that Taiwan's present economic woes mainly result from economic restructuring and transformation.

Noting that adjustment and metamorphosis are necessary processes in national economic development, Chen said he is convinced that Taiwan will be able to cope with challenges of ongoing economic liberalization and globalization.

In recent years, Chen said, many people have invested in the high-tech industrial sector due to a global high-tech boom. As a result, many traditional industries have suffered adverse impacts, including capital retrenchment.

Chen said the government is fully aware of the plights of traditional industries and is determined to help them reinvent themselves and find a new lease of life.

"After visiting several textile factories around the island, I don't think that textile is a sunset industry. On the contrary, I find that local textile makers have introduced advanced production and management technologies," Chen said, adding he believes that Taiwan's textile industry still has a bright future.

Chen said Germany and Italy have been the world's major textile exporting countries. "If the two high-wage countries can excel in textile exports, I believe that Taiwan can also make it," he added.

Textiles have been one of Taiwan's most important foreign exchange earners. According to Taiwan Textile Federation tallies, Taiwan exported US$15.22 billion worth of textile goods in 2000 and its textile imports totaled US$2.89 billion during the same period. Due to a global economic recession, Taiwan's textile industry is facing export slowdown and many other difficulties.

Chen said his administration has consistently given priority to boosting the development of textile industry. He told senior textile industry executives that the planned economic development consulting group will reserve a seat for textile industry representative.

Moreover, Chen said he has ordered Vice Minister of Economic Affairs Lin Yi-fu (林義夫) to organize a special panel to work out feasible ways to help textile makers resolve a host of problems presented at yesterday's meeting.

The problems included stringent standards for textile waste water treatment, labor shortage, high wages, overproduction of synthetic fibers, difficulties in raising investment capital and obtaining bank loans, as well as lackluster capabilities to present innovative designs and explore new markets.

The proposal was presented by Douglas Hsu (徐旭東), chairman of the Far Eastern Group (遠東集團), also one of Taiwan's leading textile manufacturers. Hsu suggested that the two sides of the Taiwan Strait mutually cut tariffs on textile products and allow their makers to invest in the textile industry.

"I'm convinced that if the proposal can be put into effect, both Taiwan and mainland China would benefit from those new opening measures, and Taiwan's textile stocks would stage a strong rebound," Hsu said.