The Executive Yuan is planning to come down hard on Taiwanese businesses that have invested illegally in China. The Ministry of Economic Affairs has compiled a list of venture-capital companies who have made such investments and plans to push them to withdraw their money. The Mainland Affairs Council is also demanding that businesses promise not to sneak away -- under threat of being punished if they do. Violators are likely to have a hard time getting approval for applications for future investments in China.
One of the companies on the ministry's list is Prudence Capital Co (
This is an important step in the government's efforts to impose economic and trade discipline across the Taiwan Strait. Even though the government's policy is "active openness, effective management," the easing of business and trade restrictions is not something Taiwan can decide unilaterally. It is contingent on good interaction between the two sides of the Strait. Illegal investments by Taiwanese businesses have caused a serious hemorrhaging of capital and technology from Taiwan to China and caused Taipei to lose the initiative in cross-strait trade policy. The government has been ridiculed for "passive openness, inefficient management." Following repeated pledges from President Chen Shui-bian (
For a long time, the economics ministry and the council have been discussing lifting restrictions on investments in Chinese chip foundries. The decision to allow investment in eight-inch wafer foundries was reached only after careful consideration of national security, industrial competition and economic freedom. However, some businesses have already invested in such foundries before winning government approval. The government's credibility is on the line -- it must take action, especially since KMT bigshots and business heavyweights such as Hsu, Wang and Chen Lu-an (
It's not that the government has lacked the means to tackle illegal investment -- it is just that enforcement has been lax. The Statute Governing Relations between the People of the Taiwan and Mainland Areas (
Many countries require government approval for the export of sensitive technologies and products, including the US. Taiwan is a country that attaches great importance to economic freedom. However, in the rush to exercise their freedom, some individuals and businesses have forgotten that China is still hostile toward Taiwan. Investment controls may limit some business freedom, but they are a necessary evil for maintaining the public interest.
In an article published in Newsweek on Monday last week, President William Lai (賴清德) challenged China to retake territories it lost to Russia in the 19th century rather than invade Taiwan. “If it is really for the sake of territorial integrity, why doesn’t China take back Russia?” Lai asked, referring to territories lost in 1858 and 1860. The territories once made up the two flanks of northern Manchuria. Once ceded to Russia, they became part of the Russian far east. Claims since then have been made that China and Russia settled the disputes in the 1990s through the 2000s and that “China
China has successfully held its Forum on China-Africa Cooperation, with 53 of 55 countries from the African Union (AU) participating. The two countries that did not participate were Eswatini and the Sahrawi Arab Democratic Republic, which have no diplomatic relations with China. Twenty-four leaders were reported to have participated. Despite African countries complaining about summit fatigue, with recent summits held with Russia, Italy, South Korea, the US and Indonesia, as well as Japan next month, they still turned up in large numbers in Beijing. China’s ability to attract most of the African leaders to a summit demonstrates that it is still being
Trips to the Kenting Peninsula in Pingtung County have dredged up a lot of public debate and furor, with many complaints about how expensive and unreasonable lodging is. Some people even call it a tourist “butchering ground.” Many local business owners stake claims to beach areas by setting up parasols and driving away people who do not rent them. The managing authority for the area — Kenting National Park — has long ignored the issue. Ultimately, this has affected the willingness of domestic travelers to go there, causing tourist numbers to plummet. In 2008, Taiwan opened the door to Chinese tourists and in
Taiwan People’s Party (TPP) Chairman Ko Wen-je (柯文哲) on Thursday was handcuffed and escorted by police to the Taipei Detention Center, after the Taipei District Court ordered that he be detained and held incommunicado for suspected corruption during his tenure as Taipei mayor. The ruling reversed an earlier decision by the same court on Monday last week that ordered Ko’s release without bail. That decision was appealed by prosecutors on Wednesday, leading the High Court to conclude that Ko had been “actively involved” in the alleged corruption and it ordered the district court to hold a second detention hearing. Video clips
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