In the lead-up to the 2012 presidential election, HTC Corp chairwoman Cher Wang (王雪紅) said at a press conference in Taiwanese and Chinese that she sided with President Ma Ying-jeou (馬英九) in support of the so-called “1992 consensus.” At the time, HTC had a net revenue of NT$619.76 billion (US$19.95 billion), earnings per share of NT$714.74 in 2011, a share price of NT$1,300 and market capitalization of NT$1.63 trillion. However, that same day was the beginning of the firm’s downfall, as she proclaimed that HTC is a Chinese brand. Since then, HTC’s mobile phone division has lost half of its sales in the Taiwanese market, likely in part due to pan-green camp voters vowing never to use HTC products again.
Wang’s words did not gain HTC 1.3 billion supporters in China. Was this situation brought about by the low self-esteem of a small nation, or a company’s long-term indoctrination by a foreign regime?
The unorthodox viewpoint of China held by Taiwanese academics, government officials and journalists is that the nation’s economy is in China’s hands. In particular, a lot of entrepreneurs believe they can rely on the advantage of a common language to establish a brand in the giant cross-strait market, with dreams of then creating a global monopoly. It is this misconception that lead HTC to its demise.
China is a nationalist country. It might have 5,000 years of history, but this has not produced a civic culture of brotherly love and land for all Chinese. Rather, on a small scale, it is a society of many small Chinatowns around the world representing China’s ethnic identity, while on a large scale, it uses the spirit of “the Middle Kingdom,” descendants of the Yellow Emperor and references to China’s mighty revival to maintain a connection to the greater Chinese civilization, while deeming all other races barbarian.
Chinese ethnocentrism was rampant when the Chinese Nationalist Party (KMT) ruled pre-democratic Taiwan, which triggered the 228 Incident and the White Terror era.
Recently, Beijing has pushed guidelines for a national IC industry — the China Manufacturing 2025 effort and related policies — while an alien regime in Taiwan is singing to the same tune. Beijing’s goal has been to substitute Taiwanese-owned businesses in China and semiconductor industries still in Taiwan. Although Beijing has repeatedly called Taiwanese firms “compatriots,” it does not matter how hard they try to cooperate, Taiwanese firms are still Taiwanese and China does not want important industries and brands to be meddled with by “barbarians.”
Wang’s claim that HTC is a firm created by Chinese and that it is a world-class, international brand created for Chinese is not leaving an impression on the Chinese ethnic identity. On the contrary, it is triggering a negative effect worldwide. If the Japanese were told that HTC is a Chinese brand, would they then choose HTC even if the price and functionality were the same?
The same problem would occur in Vietnam, the Philippines and other Southeast Asian nations as well as in the US and Europe, especially when China launches its “One Belt, One Road” initiative to bolster the “glorious revival of the Chinese people.”
In confronting Taiwan’s economic hardships, it is urgent that leaders and entrepreneurs address Taiwanese identity and HTC’s worldview. They must understand that working toward being a Chinese business will not bring the desired outcome and will lead to failure, because it alienates global markets.
Perhaps they should use a similar strategy to Taiwan Semiconductor Manufacturing Co and become rooted in Taiwan focusing on technology to run a successful business.
Huang Tien-lin is former president and chairman of First Commercial Bank and a former Presidential Office adviser.
Translated by Zane Kheir
Taiwan Semiconductor Manufacturing Co (TSMC) founder Morris Chang (張忠謀) has repeatedly voiced concern over the weakening cost competitiveness of its US fabs and challenged the US’ “on-shore” policy of building domestic semiconductor capacity. Yet not once has the government said anything, even though the economy is highly dependent on the chip industry. In the US, the cost of operating a semiconductor factory is at least twice the amount required to operate one in Taiwan, rather than the 50 percent he had previously calculated, Chang said on Thursday last week at a forum arranged by CommonWealth Magazine. He said that he had
Former president Ma Ying-jeou (馬英九), also a former chairman of the Chinese Nationalist Party (KMT), has said that he plans to travel to China from Monday next week to April 7 to pay his respects to his ancestors in Hunan Province. The trip would mark the first cross-strait visit by a former president of the Republic of China (ROC) since its government’s retreat to Taiwan in 1949. Ma’s trip comes amid China’s increasing air and naval incursions into Taiwan’s air defense identification zone, and at a time when Chinese President Xi Jinping (習近平) continues to seek to annex Taiwan. Ma’s trip could be
The International Criminal Court (ICC) arrest warrant issued on Friday last week for Russian President Vladimir Putin delighted Uighurs, as Putin’s today signals Chinese President Xi Jinping’s (習近平) tomorrow. The crimes committed by Xi are many times more serious than what Putin has been accused of. Putin has caused more than 8 million people to flee Ukraine. By imprisoning more than 3 million Uighurs in concentration camps and restricting the movement of more than 10 million Uighurs, Xi has not only denied them the opportunity to live humanely, but also the opportunity to escape oppression. The 8 million Ukrainians who fled
Disruption is coming to the agriculture sector. Around the world, livestock farmers are leaving the land, policymakers are targeting the harmful environmental and social effects of industrial meat production, and consumers are shifting away from meat to embrace healthier, more sustainable alternatives. With the sector approaching a crossroads, decisionmakers in government, industry and civil society need to heed the lessons gained from major transitions in other industries and start preparing. Preparation requires a careful inventory of farmers, workers and consumers’ needs. While farmers are growing older and leaving the land for other pursuits or retirement, the agriculture sector is struggling to
RSS