The word is out that Chi Mei Group's (奇美) petrochemical plants in China are being shut down by China's government, because of some quotes from the group's president, Shi Wen-lung (許文龍), in the Japanese comic book On Taiwan (台灣論). Hopefully, this latest event will open the eyes of the herds of Taiwanese businessmen rushing across the Taiwan Strait. If Beijing keeps up the good work, soon it will be able to accomplish a "peaceful unification" by holding all the Taiwanese businessmen in China hostage.
For those who continue to harbor hope that China may change, we can only pity them. Too many examples speak for themselves. The chairman of Acer Inc, Stan Shih (施振榮), was openly criticized in China for serving as a policy adviser to President Chen Shui-bian (
The most pathetic aspect is China's ploy works. Today, Acer keeps a low profile in China, while its president, Shih, keeps a distance from the Chen administration. A-mei's lucrative contract with Coca-Cola was cancelled, her CD removed from music stores in China and her songs vanished from radio broadcasts. A-mei's case should shatter any hopes for those who believe joint ventures with major foreign companies are safe from Beijing's claws. Not even Coca-Cola, a world-renowned US conglomerate, dared to stand up to Beijing.
How does China do it? First, Beijing often harasses businesses deemed as "eyesores" by conducting frequent tax audits and investigating for labor abuses, environmental pollution and violations of fire safety regulations, among other supposed misconduct. The slightest breach of existing laws or regulations brings hefty penalties. These are the gimmicks that Beijing used to drive out Jimmy Lai's retail chain.
Of course, how can we forget Beijing's favorite trick -- rumors. Perhaps Beijing has finally learned a valuable lesson from the 1996 and 2000 presidential elections in Taiwan. After all, even monkeys learn from trial and error, although that may not be the case with Taiwanese businessmen who continue to harbor hopes for Beijing. On both occasions, official criticism from high-ranking China officials helped the presidential candidates they loathed -- namely, Lee Teng-hui (李登輝) and Chen Shui-bian -- to win the election. Since then, China has discovered the wonders of starting "rumors" instead of giving official statements.
Why have high-ranking government officials issue official statements, when they invite international criticism? Why officially ban any businesses, when it jeopardizes China's bids to enter the WTO and host the Olympics, not to mention cools the enthusiasm of foreign and Taiwanese investors? Spreading rumors of possible government sanctions will do, without incurring any of the aforementioned downsides.
As in the case of A-mei, rumor-mongering is exactly the tactic that Beijing is using against Shi Wen-lung. In both instances, no government official has confirmed the imposition of any sanctions. In fact, an official from the Taiwan Affairs Office of China's government has denied any pending sanctions. However, rumors have been sufficient to turn away A-mei's Coca-Cola contract and Chi Mei's business contracts.
Many argue they are safe because they are staying away from "politics." The problem is, no one can ever be certain about what, when or who may irritate Beijing. Those who insist on investing in China will just have to live with these risks.
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