After US president-elect Joe Biden is sworn in, Taiwanese and international commentators agree that US-Chinese relations are likely to remain unchanged. That might be true, but there would be great differences in the force and scope of any confrontations. If the issue is not handled with caution, it could endanger not just Taiwan, but the world.
It took US President Donald Trump’s administration about three years to find China’s Achilles’ heel: It is technology, not trade. When the US imposed sanctions on Huawei Technologies during a US-China trade dispute, Huawei founder Ren Zhengfei (任正非) remained unfazed and continued to expand his business worldwide.
Once Washington issued restrictions on the Chinese telecom’s access to US technology, Ren begged for mercy. If Trump’s tech ban remains, it would delay Chinese technology development by 20 years.
After his victory, Biden is likely to be pressured by US companies to relax the restrictions for short-term commercial gains. If the US fails to protect trade secrets and stay alert for Chinese spies, technological innovations and job opportunities would be stolen by the Chinese.
Taiwan’s significance lies in the world-class Taiwan Semiconductor Manufacturing Co (TSMC) and the upper, mid and downstream sectors of its supply chain. If TSMC and related businesses are able to transform into an exclusive industrial cluster by cooperating with US, Japanese and European companies, that would create the a strong protective shield for Taiwan.
If Taiwan does not attach sufficient importance to the protection of intellectual property rights and prevent the flow of talent to China, it will be left with a bunch of outdated factories in 20 years.
Biden’s long political career shows that he avoids offending anyone. When former US president Barack Obama first took office nearly 12 years ago, he tolerated Beijing’s building of artificial islands in the South China Sea and did not send US warships to deter it.
Instead, Obama mobilized the Philippines to file a lawsuit against China with the International Court of Justice. The Philippines might have won the lawsuit, but China still occupies the South China Sea.
It is possible Biden will follow Obama’s approach. He might join hands with free democratic countries and place strong sanctions on China, but as a result of business pressure this is likely to be more talk than action. This could also accelerate China’s theft of technologies from the world’s advanced countries, and help it speed up its transformation.
Taiwanese businesses must understand that the Chinese Communist Party’s nature is that “if you cannot trick someone into giving you what you want, buy it; if you cannot buy it, steal it.”
These companies need to tighten control of their talent, and every key position must be accompanied with noncompetition agreements with specific time limitations.
Executives such as former TSMC research and development director Liang Mong-song (梁孟松), who left the firm for South Korea’s Samsung Group and then China’s Semiconductor Manufacturing International, should be prohibited from working for major competitors for at least 10 years after their resignation.
Taiwan’s chance to turn things around might lie in taking advantage of global anti-Chinese sentiment to recruit foreign talent, offering them job opportunities, permanent residency and quality healthcare insurance.
Using this approach, the nation could become a treasure island where global talent in high-tech industries would love to work, and where a leading semiconductor powerhouse acts as a critical strategic partner of Biden’s administration.
Richard Huang is Asia-Pacific general manager of US-based TRENDnet Inc.
Translated by Eddy Chang
When former president Tsai Ing-wen (蔡英文) first took office in 2016, she set ambitious goals for remaking the energy mix in Taiwan. At the core of this effort was a significant expansion of the percentage of renewable energy generated to keep pace with growing domestic and global demands to reduce emissions. This effort met with broad bipartisan support as all three major parties placed expanding renewable energy at the center of their energy platforms. However, over the past several years partisanship has become a major headwind in realizing a set of energy goals that all three parties profess to want. Tsai
An elderly mother and her daughter were found dead in Kaohsiung after having not been seen for several days, discovered only when a foul odor began to spread and drew neighbors’ attention. There have been many similar cases, but it is particularly troubling that some of the victims were excluded from the social welfare safety net because they did not meet eligibility criteria. According to media reports, the middle-aged daughter had sought help from the local borough warden. Although the warden did step in, many services were unavailable without out-of-pocket payments due to issues with eligibility, leaving the warden’s hands
There is a modern roadway stretching from central Hargeisa, the capital of Somaliland in the Horn of Africa, to the partially recognized state’s Egal International Airport. Emblazoned on a gold plaque marking the road’s inauguration in July last year, just below the flags of Somaliland and the Republic of China (ROC), is the road’s official name: “Taiwan Avenue.” The first phase of construction of the upgraded road, with new sidewalks and a modern drainage system to reduce flooding, was 70 percent funded by Taipei, which contributed US$1.85 million. That is a relatively modest sum for the effect on international perception, and
Indian Ministry of External Affairs spokesman Randhir Jaiswal told a news conference on Jan. 9, in response to China’s latest round of live-fire exercises in the Taiwan Strait: “India has an abiding interest in peace and stability in the region, in view of our trade, economic, people-to-people and maritime interests. We urge all parties to exercise restraint, avoid unilateral actions and resolve issues peacefully without threat or use of force.” The statement set a firm tone at the beginning of the year for India-Taiwan relations, and reflects New Delhi’s recognition of shared interests and the strategic importance of regional stability. While India
RSS