Fri, Dec 21, 2001 page12

• Editorial: Faustian bargains hard to live with

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  Gangsters have often been quoted as excusing their actions by saying that "in this world, we don't always have a choice." This is supposed to act as an apology for their inability to mend their evil ways or their belief that inadequacies in their upbringing or education left them no alternative but to turn to a life of crime.

  It may also be the most appropriate way to explain why a Taiwanese company allowed the Chinese Communist Party to establish a political committee at a factory in Shenzhen. The difference between Taiwanese companies and gangsters, however, is that companies have no choice because they are dependent on the party's political power.

  However, regardless of whether it is companies willing to accede to a political party's control or gangsters, each has freely chosen to place themselves in that situation and therefore have no one else to blame for their predicament.

  Foxconn (富士康), the company in question, however, is the largest Taiwanese-owned concern in China, so close attention must be paid to what goes on there. If not, there will be no guarantees for future Taiwanese companies and their rights in China, and these businesses may even find themselves coming under full political control.

  Having to live with political control is old hat for companies in Taiwan. The tentacles of the KMT's political organization reached into every official and private organization in Taiwan during its decades-long rule. So why all the fuss about the Chinese Communist Party establishing a political committee in a Taiwanese company in China? After all, establishing an organization for employees to pursue their political beliefs is natural in democratic nations and constitutionally guaranteed in many countries.

  The problem is two-fold: China is a long way away from being a liberal democracy and there is also an imbalance in the cross-strait situation -- China is closed and authoritarian while Taiwan is pluralistic and open, putting Taiwan at a disadvantage.

  The Chinese Communist Party establishing a party committee inside a Taiwanese-owned company makes us wonder what the owner will do if one day there is a labor dispute and the labor union intervenes, backed-up by the party? If the employer gives in -- even though he or she is in the right -- out of fear of political pressure, then there will be no end to the problems. Where will the owner draw the line if the party committee make endless demands? Will the company even have a future in China?

  Even more absurd is what Kuo Tai-ming (郭台銘), Foxconn's president, wrote in a statement celebrating the occasion: "The establishment of a party committee in our company sets an example for the Communist Party's new model for consolidating and expanding its class and mass bases, and it also marks the beginning of a new phase for our company." Kuo went on to praise the party cadres for being "diligent and hardworking, active and aggressive."

  "New phase for our company" indeed -- Kuo and his colleagues either haven't considered the possible drawbacks of such a liaison or they are operating with blinders on. No matter what they may say now, they are effectively ceding control of their business. Chinese are fond of old maxims and there is one from the West that seems to apply here -- "Give them an inch and they will take a mile."

  If the capitalists find themselves at odds one day with their workers' political committee, they shouldn't expect any sympathy from this side of the Taiwan Strait.
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