After the end of World War II, the US and western European countries created NATO to deter aggression from the former Soviet Union and ensure peace in Europe. Government officials and scholars in Southeast Asia rarely discuss NATO but often use the phrase "NATO" (no action, talk only) to describe or satirize Taiwan's "go south" policy.
In the 1990s the KMT administration advocated the policy on a grand scale, encouraging Taiwan-ese businesspeople to invest in Southeast Asia. The unprecedented economic and financial crisis in Asia in 1997 and 1998, along with political turmoil and civil unrest in Indonesia and the Philippines, made the policy lose steam, dashing the hopes of the governments in those countries.
For Taiwan "go south" remains an important policy because it can diversify the risks inherent in foreign investment. Since China became popular with Taiwanese investors, many have lost their capital across the Taiwan Strait with no return whatsoever. Since the DPP came to power, it has considered how to expedite the policy.
In the past two years I have visited Indonesia and other South-east Asian countries three times. My most recent trip was in late June, when I hoped to gain some insight into the local situation and into the needs of Taiwanese investors, as well as how the government can proceed with the policy.
The first step was taken when Vice President Annette Lu (
Besides diversifying the risks of investing in China, the "go south" policy can improve and strengthen relations between Taiwan and ASEAN nations. Foreign investors withdrew from many Southeast Asian countries after the financial crisis. The lack of foreign funds was also attributed to China's increasing popularity for foreign investment.
Taiwanese businesspeople would undoubtedly receive special incentives and considerable attention from Indonesia and other ASEAN countries if they were to invest there at this moment. ASEAN is promoting a free-trade area that is expected to become Asia's largest by 2006. Taiwan must aggressively take part in order to prevent it from later becoming marginalized during regional economic integration.
Taiwan once invested heavily in Vietnam, Thailand, Malaysia and Indonesia, and was a major source of foreign funds in these countries. Taiwan is still the foremost investor in Vietnam. Taiwanese investors have also been successful in Thailand. Indonesia also has great potential.
After experiencing a political transition and brief unrest, Indo-nesia has rebuilt her democratic system. As Indonesian President Megawati Sukarnoputri will run for re-election in 2004, Taiwan's "go south" policy will be well-received by all parties for creating job opportunities and revitalizing the Indonesian economy.
In future Indonesia will develop high-tech industries and high-value-added export indus-tries. Taiwan can utilize its technological advantage to make technology transfers. Indonesia is rich in labor and natural resources, particularly in the textile industry and processing raw materials. Prospects in Indonesia thus seem to be promising for investors.
To launch Taiwan's "go south" policy toward Indonesia, the admin-istration must draw up a comprehensive plan with concrete measures. For example, buying natural gas from Indonesia could be a bargaining chip. The "go south" policy should no longer be "NATO." The administration must put a solid framework in place and government-owned enterprises, if necessary, must serve as forerunners.
First, the government should assist investors with financing by trying to have banks set up in Indonesia and other countries. Low-interest loans can be offered to manufacturers in Southeast Asia to purchase equipment and supplies from Taiwan and undertake construction.
Second, the government must negotiate with Indonesia and other ASEAN countries to reduce double taxation and push for laws and regulations protecting investors. We must request ASEAN countries to provide preferential treatment. China has been able to attract foreign funds through her incentives on taxes and land.
Third, the government must urge ASEAN members to review their labor policies. For instance, workers in Indonesia are over-
protected. Employers must give 17-months severance pay when firing a worker. Such a policy will undoubtedly make investors hesitant to go there.
Taiwan is part of a chain of islands in the western Pacific Ocean. However, it has never been considered a part of Southeast Asia and therefore is unable to become an ASEAN member.
Academics in Taiwan have extensively studied and researched the US, Japan and Europe, but the number of people who focus on Southeast Asia is quite small. Media coverage of the region's politics, economics, cultures and societies tends to be both sparse and shallow.
In pursuit of the "go south" policy, Taiwan must seek to understand Southeast Asia in depth, bridging the psychological distance with those countries.
Parris Chang is a DPP legislator.
Translated by Grace Shaw
Since the end of the Cold War, the US-China espionage battle has arguably become the largest on Earth. Spying on China is vital for the US, as China’s growing military and technological capabilities pose direct challenges to its interests, especially in defending Taiwan and maintaining security in the Indo-Pacific. Intelligence gathering helps the US counter Chinese aggression, stay ahead of threats and safeguard not only its own security, but also the stability of global trade routes. Unchecked Chinese expansion could destabilize the region and have far-reaching global consequences. In recent years, spying on China has become increasingly difficult for the US
Lately, China has been inviting Taiwanese influencers to travel to China’s Xinjiang region to make films, weaving a “beautiful Xinjiang” narrative as an antidote to the international community’s criticisms by creating a Potemkin village where nothing is awry. Such manipulations appear harmless — even compelling enough for people to go there — but peeling back the shiny veneer reveals something more insidious, something that is hard to ignore. These films are not only meant to promote tourism, but also harbor a deeper level of political intentions. Xinjiang — a region of China continuously listed in global human rights reports —
The annual summit of East Asia and other events around the ASEAN summit in October and November every year have become the most important gathering of leaders in the Indo-Pacific region. This year, as Laos is the chair of ASEAN, it was privileged to host all of the ministerial and summit meetings associated with ASEAN. Besides the main summit, this included the high-profile East Asia Summit, ASEAN summits with its dialogue partners and the ASEAN Plus Three Summit with China, Japan and South Korea. The events and what happens around them have changed over the past 15 years from a US-supported, ASEAN-led
To the dismay of the Chinese propaganda machine, President William Lai (賴清德) has been mounting an information offensive through his speeches. No longer are Taiwanese content with passively reacting to China’s encroachment in the international window of discourse, but Taiwan is now setting the tone and pace of conversation. Last month, Lai’s statement that “If China wants Taiwan it should also take back land from Russia” made international headlines, pointing out the duplicity of Chinese President Xi Jinping’s (習近平) revanchism. History shows that the Chinese Communist Party’s (CCP) stance on regional territorial disputes has not been consistent. The early CCP
RSS