One of the significant conclusions of the conference came on the last day of the event, during Chen's speech. He specifically pointed to a recommendation of the investment committee that the government should organize a presidential committee to really look into reforming the government. In this, the 21st century, the economic climate is changing so rapidly that the government has to look not only at how to become more efficient, but also really review the model of government.
I really hope Chen is going to do this and thereby allow the government to catch up with the high-tech sector.
TT; Many people oppose the relaxing of China trade restrictions, fearing it could speed up the exodus of capital and people to China. Are those fears real?
Tu: Cross-strait opening is positive. My perspective on the "no haste, be patient" policy is that I have to give [former president] Lee Teng-hui (
Ten years ago when I was in China as the chairman of Goldman Sachs Group Inc, he pointed out that the opening of the Chinese market was one of the most significant human events -- similar to the industrial revolution in the US. Unfortunately, the policy was a little bit too Japanese style: passive, negative and set up as a barrier or a dam at that time, which the water [eventually] flowed over.
So I think the answer would be to adopt a US method of solving the problem: Don't try to stop the flow but instead turn it to your advantage. That's what Lee didn't do.
If you take a good look at Taiwan enterprises they have to become global firms. Their customers are global, their products are global and their technologies are all global. Taiwanese have to go to China for the markets, for the cheap labor and for the customers who are asking them to be there. And if they don't go they won't be able to survive.
The "no haste" policy was not a help but a handicap. I think the new policy slogan of "active opening, effective management" is the correct direction if you recognize that the China is going to become the biggest market in the world. I thinks it will become bigger than the US market one day.
Taiwanese should take advantage of the culture, language and geographic position of China. Of course many people say that this will put too much capital and too many people into China and hollow out the Taiwan economy.
What Taiwan should do is build a bird nest instead of a bird cage. If a bird is locked up, once it gets out it will never come back. But, if you build a bird a nest, they will go out and when they need to lay their eggs they will come back. So build a place that Taiwan businessman want to come back to. That's the direction I think Taiwan should ultimately go.
Implementation of that plan will take time and the wisdom of the government and businessmen working together.
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