Looking back at former president Lee Teng-hui’s (李登輝) “no haste, be patient” policy with regard to Taiwan’s cross-strait economic and trade relations, it was important at the time in terms of risk management and internal government controls. Even today, when dealing with China, Taiwan still cannot overlook the effects that any policy could have on national security, economic independence, the investment environment and social development — a consideration that was included in the “no haste” policy implemented in 1996 during Lee’s 12 years in power.
In the mid to late 1990s, the whole world was focused on the massive investment opportunities in China, and Taiwan was no exception, aiming to grab a sizeable share of the huge Chinese market. However, as opportunities are inevitably accompanied by risks, the government under Lee adopted the “no haste” policy to cap China-bound investments at US$50 million per project, ban the production of high-tech products in China and place restrictions on infrastructure sectors.
The policy received a lot of criticism from several business heavyweights at the time, including Formosa Plastics Group’s late founder, Wang Yung-ching (王永慶), and former Taiwan Semiconductor Manufacturing Co (TSMC) chairman Morris Chang (張忠謀).
The “no haste” policy certainly did not end capital outflows from Taiwan, and it also failed to effectively bar industries from making investments in China through indirect channels or relocating their assets there via a third country. Some political observers might also see it as a superficial measure, but it still set up some key thresholds so that the flow of funds across the Taiwan Strait would not excessively affect Taiwan’s overall economic and social development. In retrospect, the substitution of the “no haste” policy with former president Chen Shui-bian’s (陳水扁) “active opening and effective management” policy in 2001 led to even more investment pouring into China.
This year, the COVID-19 outbreak left China’s economic activities stagnating for three to four months due to factory shutdowns, production suspensions and city lockdowns. As China remains the largest offshore production base for Taiwanese manufacturers, it is difficult to imagine how Taiwan’s economy would fare today if all of the nation’s major industries had relocated and set up factories in China 24 years ago without the restrictions set by the “no haste” policy.
The outbreak has also revealed the deficiencies in the crisis management capabilities of the Chinese government, which proves that a certain level of economic control in specific areas regarding the development of trade relations with China is needed. Regarding cross-strait economic exchanges, it was righ to promote the “no haste” policy two decades ago and remains so today, considering the deteriorating trade relations between the US and China, and Beijing’s geopolitical ambitions.
Whether it is Lee’s “no haste” policy or President Tsai Ing-wen’s (蔡英文) “New Southbound Policy,” people must be reminded not to put all their eggs in the China basket to prevent Taiwan from becoming over-reliant on its giant, unstable neighbor. If there was no “no haste” policy, TSMC and many other semiconductor firms might have invested heavily in China, and Taiwan would have lost its “silicon shield.” In the past, people had different opinions about the necessity of the “no haste” policy, but looking back at it today, more people are feeling differently, including those who criticized it strongly.
The Chinese Communist Party (CCP) has long been expansionist and contemptuous of international law. Under Chinese President Xi Jinping (習近平), the CCP regime has become more despotic, coercive and punitive. As part of its strategy to annex Taiwan, Beijing has sought to erase the island democracy’s international identity by bribing countries to sever diplomatic ties with Taipei. One by one, China has peeled away Taiwan’s remaining diplomatic partners, leaving just 12 countries (mostly small developing states) and the Vatican recognizing Taiwan as a sovereign nation. Taiwan’s formal international space has shrunk dramatically. Yet even as Beijing has scored diplomatic successes, its overreach
After 37 US lawmakers wrote to express concern over legislators’ stalling of critical budgets, Legislative Speaker Han Kuo-yu (韓國瑜) pledged to make the Executive Yuan’s proposed NT$1.25 trillion (US$39.7 billion) special defense budget a top priority for legislative review. On Tuesday, it was finally listed on the legislator’s plenary agenda for Friday next week. The special defense budget was proposed by President William Lai’s (賴清德) administration in November last year to enhance the nation’s defense capabilities against external threats from China. However, the legislature, dominated by the opposition Chinese Nationalist Party (KMT) and Taiwan People’s Party (TPP), repeatedly blocked its review. The
In her article in Foreign Affairs, “A Perfect Storm for Taiwan in 2026?,” Yun Sun (孫韻), director of the China program at the Stimson Center in Washington, said that the US has grown indifferent to Taiwan, contending that, since it has long been the fear of US intervention — and the Chinese People’s Liberation Army’s (PLA) inability to prevail against US forces — that has deterred China from using force against Taiwan, this perceived indifference from the US could lead China to conclude that a window of opportunity for a Taiwan invasion has opened this year. Most notably, she observes that
The Chinese Nationalist Party (KMT) said on Monday that it would be announcing its mayoral nominees for New Taipei City, Yilan County and Chiayi City on March 11, after which it would begin talks with the Taiwan People’s Party (TPP) to field joint opposition candidates. The KMT would likely support Deputy Taipei Mayor Lee Shu-chuan (李四川) as its candidate for New Taipei City. The TPP is fielding its chairman, Huang Kuo-chang (黃國昌), for New Taipei City mayor, after Huang had officially announced his candidacy in December last year. Speaking in a radio program, Huang was asked whether he would join Lee’s
RSS