Taiwan's economy is recovering. News came out on the first day of the 2003 Taiwan Business Alliance Conference that foreign and domestic companies have decided to invest NT$138.39 billion in 186 projects here, exceeding the Ministry of Economic Affairs' original target of NT$110 billion. This better-than-expected result has made government officials happier than ever.
The success of the conference shows that international businesses are still positive about Taiwan's investment environment as well as its economic outlook. This, despite the fact that the economic performance of and investment input in Taiwan have slumped over the last three years due to the global economic downturn and political instability. Taiwan should get out of self-pity mode and more confidently promote itself across the international
community.
Over the last few years, China has copied Taiwan's successful business model and created a magnetic effect, drawing foreign investment into its market on the strength of its cheap labor, enormous size and investment incentives. Taiwan's success in attracting investment this time has again eroded the myth of the Chinese market.
Tempting as it is, China's market is only one part of the global market. As long as Taiwan maintains its competitive edge in technological innovation, marketing and a suitable investment environment, the future of investment in Taiwan remains bright. Many media commentators and China-based Taiwanese businesspeople contend that Taiwan's economy would wither if the country did not open up direct links with China. This belief is spurious. Hong Kong, Japan and Singapore have enjoyed direct links with China for a long time, yet their economies have still performed poorly over the last couple of years. Their recovery was made even more difficult because China has drained capital and technology from them.
International trade holds the key to Taiwan's economic future. In order to maintain the country's competitiveness, the investment environment must be improved by eradicating trade barriers to the free movement of capital, people and goods and to enable businesses to deploy globally.
In spite of a consensus on improving the country's economy, the ruling and opposition parties have devoted most of their efforts to unnecessary political gain. In the best interests of Taiwan's economy, they should put aside their differences, resist electoral intrigue and make an all-out effort to formulate strategies that maximize Taiwan's competitiveness and business development.
As a member of the global economy, Taiwan must abide by international trade regulations. The biggest complaint from foreign companies is Taiwan's violations of intellectual property rights (IPR). Certainly, we do not have to accept all the rules, given the existing disputes over some Internet technologies. The government, however, must demonstrate its commitment to cracking down on piracy to ease the concerns of foreign investors about IPR violations.
The decision by foreign firms to invest in Taiwan indicates confidence in the country's economy. Climbing out of economic recession, Taiwan has to work even harder to remove investment obstacles and create another economic miracle. After all, such good opportunities do not come around very often.
As strategic tensions escalate across the vast Indo-Pacific region, Taiwan has emerged as more than a potential flashpoint. It is the fulcrum upon which the credibility of the evolving American-led strategy of integrated deterrence now rests. How the US and regional powers like Japan respond to Taiwan’s defense, and how credible the deterrent against Chinese aggression proves to be, will profoundly shape the Indo-Pacific security architecture for years to come. A successful defense of Taiwan through strengthened deterrence in the Indo-Pacific would enhance the credibility of the US-led alliance system and underpin America’s global preeminence, while a failure of integrated deterrence would
The Executive Yuan recently revised a page of its Web site on ethnic groups in Taiwan, replacing the term “Han” (漢族) with “the rest of the population.” The page, which was updated on March 24, describes the composition of Taiwan’s registered households as indigenous (2.5 percent), foreign origin (1.2 percent) and the rest of the population (96.2 percent). The change was picked up by a social media user and amplified by local media, sparking heated discussion over the weekend. The pan-blue and pro-China camp called it a politically motivated desinicization attempt to obscure the Han Chinese ethnicity of most Taiwanese.
On Wednesday last week, the Rossiyskaya Gazeta published an article by Chinese President Xi Jinping (習近平) asserting the People’s Republic of China’s (PRC) territorial claim over Taiwan effective 1945, predicated upon instruments such as the 1943 Cairo Declaration and the 1945 Potsdam Proclamation. The article further contended that this de jure and de facto status was subsequently reaffirmed by UN General Assembly Resolution 2758 of 1971. The Ministry of Foreign Affairs promptly issued a statement categorically repudiating these assertions. In addition to the reasons put forward by the ministry, I believe that China’s assertions are open to questions in international
The Legislative Yuan passed an amendment on Friday last week to add four national holidays and make Workers’ Day a national holiday for all sectors — a move referred to as “four plus one.” The Chinese Nationalist Party (KMT) and the Taiwan People’s Party (TPP), who used their combined legislative majority to push the bill through its third reading, claim the holidays were chosen based on their inherent significance and social relevance. However, in passing the amendment, they have stuck to the traditional mindset of taking a holiday just for the sake of it, failing to make good use of
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