The government's relaxation of the ban on local wafer plants is a true test of the DPP government's political wisdom as it must exercise the utmost care in balancing national security and economic development.
Although every opinion counts in a democracy, it is impossible to hammer out a public policy that pleases everyone. The bottom-line, however, is that the issue gets thoroughly debated before a final decision is made.
Economy versus politics
Over the past month, Taiwan's semiconductor industry has been at the heart of a heated political debate.
Some say that greater freedom is needed if Tai-wan's chipmakers are to compete with foreign rivals in the world's third-largest semiconductor market.
Many have voiced their concerns over national security and fear that Taiwan's industries will be hollowed out if the government allows local companies to relocate to China.
Some even said that Taiwan's blind push for investment across the Strait may not only enhance Chinese power but also send a signal to the US that Taiwan is slowly moving from economic to political integration with China.
While it is understandable why those concerns were raised, it does not make sense, however, that a democratic country stops its people from making efforts to pursue a better life.
The unique political relationship between Taiwan and China, nevertheless, has complicated the issue.
Lee Kuo-hsiung (
"Instead of rushing to make a decision, the Cabinet listened to different opinions," Lee said.
He added that it is impossible for a democratic country to ignore the free-market system in an era of globalization.
"How do you expect to persuade your people to ignore a market which is so big and so close to you geographically?" he asked. "Besides, as the world economy becomes more globalized, the governments' power gradually decreases while market forces grow."
In fact, the outflow of Taiwan's capital to China is not something that started today. It happened long before the government started to mull adjustments to its cross-strait trade policies.
The government has been under constant and intense pressure to loosen or even eliminate barriers to direct economic exchanges with China.
In light of this pressure, the Economic Development Advisory Conference was convened last August and proposed replacing former president Lee Teng-hui's (李登輝) "no haste, be patient" (戒急用忍) policy with the policy of "active opening and effective management" (積極開放, 有效管理) for increased economic relations with China.
Although many have expressed concern about national security, attention has focused more on immediate economic problems because it is well accepted that liberalization is an option for reviving Taiwan's economy.
"It's a fact that the sheer size of the Chinese market has such a substantial significance that no single country in the world can ignore it," Lee Kuo-hsiung said.
If economic investment in China is inevitable, it seems logical to make adjustments accordingly as China's economy grows.
The US has effective restrictions on certain security-related goods exported to China and uses sanctions when the use or export of certain products violates agreements.
Us model
There is also a full understanding among US companies that they are on their own should they fail in their operations abroad. Only if clear discrimination against US firms is practiced by a foreign country does their government intervene.
The government's "effective management" mechanism should do just that.
"Don't be afraid of opening up. Even President Chen Shui-bian (
"I don't think the government can stop local chipmakers from relocating to China if they really want to. Why not allow local investment in China and effectively manage it? Doesn't it sound appropriate and necessary?"
‘DENIAL DEFENSE’: The US would increase its military presence with uncrewed ships, and submarines, while boosting defense in the Indo-Pacific, a Pete Hegseth memo said The US is reorienting its military strategy to focus primarily on deterring a potential Chinese invasion of Taiwan, a memo signed by US Secretary of Defense Pete Hegseth showed. The memo also called on Taiwan to increase its defense spending. The document, known as the “Interim National Defense Strategic Guidance,” was distributed this month and detailed the national defense plans of US President Donald Trump’s administration, an article in the Washington Post said on Saturday. It outlines how the US can prepare for a potential war with China and defend itself from threats in the “near abroad,” including Greenland and the Panama
The High Prosecutors’ Office yesterday withdrew an appeal against the acquittal of a former bank manager 22 years after his death, marking Taiwan’s first instance of prosecutors rendering posthumous justice to a wrongfully convicted defendant. Chu Ching-en (諸慶恩) — formerly a manager at the Taipei branch of BNP Paribas — was in 1999 accused by Weng Mao-chung (翁茂鍾), then-president of Chia Her Industrial Co, of forging a request for a fixed deposit of US$10 million by I-Hwa Industrial Co, a subsidiary of Chia Her, which was used as collateral. Chu was ruled not guilty in the first trial, but was found guilty
DEADLOCK: As the commission is unable to forum a quorum to review license renewal applications, the channel operators are not at fault and can air past their license date The National Communications Commission (NCC) yesterday said that the Public Television Service (PTS) and 36 other television and radio broadcasters could continue airing, despite the commission’s inability to meet a quorum to review their license renewal applications. The licenses of PTS and the other channels are set to expire between this month and June. The National Communications Commission Organization Act (國家通訊傳播委員會組織法) stipulates that the commission must meet the mandated quorum of four to hold a valid meeting. The seven-member commission currently has only three commissioners. “We have informed the channel operators of the progress we have made in reviewing their license renewal applications, and
A wild live dugong was found in Taiwan for the first time in 88 years, after it was accidentally caught by a fisher’s net on Tuesday in Yilan County’s Fenniaolin (粉鳥林). This is the first sighting of the species in Taiwan since 1937, having already been considered “extinct” in the country and considered as “vulnerable” by the International Union for Conservation of Nature. A fisher surnamed Chen (陳) went to Fenniaolin to collect the fish in his netting, but instead caught a 3m long, 500kg dugong. The fisher released the animal back into the wild, not realizing it was an endangered species at
RSS