Tuesday, September 05, 2006

AmCham Editorial Creates Miniflap

Locals news orgs are reporting on the spat between the American Chamber of Commerce and the Taiwan Solidarity Union (TSU), the more radical of the pro-independence parties. The China Post reports:

The executive director of the American Chamber of Commerce in Taipei (AmCham) Richard Vuylsteke yesterday stood by an editorial in the chamber's magazine critical of the hard line pro-independence Taiwan Solidarity Union (TSU) -- despite a strong backlash from the minority party.

The editorial in AmCham's latest issue of TOPICS magazine criticizing the TSU's opposition to closer economic ties with the mainland yesterday infuriated TSU politicians, who warned the chamber against interfering in Taiwan's internal politics.

The editorial even provoked comments from former President Lee Teng-hui according to local news reports.

Vuylsteke said the chamber's stance on closer ties with China was similar to views held by the majority of the public. He warned that too much economic isolation would make Taiwan a nation similar to North Korea or Burma.


The AmCham editorial is online. The nasty bit is here:

The second dose of reality is that the conference – even given the limitations of its awkward structure – could have accomplished far more to assure a brighter economic future for Taiwan. Unfortunately politics got in the way when the tiny Taiwan Solidarity Union (TSU) held the meeting agenda hostage to the party’s ideological bias against closer economic ties with China. As a pan-green ally, the TSU commands more influence with the government than the number of its supporters warrants, and the party’s “spiritual leader,” ex-President Lee Teng-hui, still has a following because of his past contributions to building Taiwan’s democracy.

But on purely economic grounds, Lee and the TSU are off base. Without an ability to tap fully into the regional and global business activity that flows through China, Taiwan will be just another medium-sized market of limited interest to international corporations (and to their business-minded governments). By deferring to the TSU and failing to adopt further opening to China through expanded industrial investment and the opening of banking connections, the government is weakening, not safeguarding, Taiwan’s competitiveness.

It's comical to accuse the TSU of having an "ideological bias" while remaining silent on China's ongoing campaign to crush the island's independence and democracy. The TSU has one of those weird and unexplainable aversions to being shot at, bombed, and invaded. It also has a strange and inexplicable desire to make Taiwan's economy grow, and to grow Taiwan using Taiwan's capital, not to develop the island's worst enemy. It looks churlish -- nay, ideological -- of AmCham not to at least concede that the TSU has a point. Such writing wins no hearts and minds. Quite the opposite -- it has needlessly caused a flap. Imagine if AmCham had instead written:

The second dose of reality is that the conference – even given the limitations of its awkward structure – could have accomplished far more to assure a brighter economic future for Taiwan. We understand that many in Taiwan fear that more openness to China will result in the "hollowing out" of Taiwan's economy. However, we beg to differ. Taiwan cannot begin to move up in the international supply chain until it becomes part of that chain. It cannot develop more global, international outlook unless it joins the international economy. And for better or for worse, that economy will be focused on China in the future. With its lingustic and cultural affinities, physical proximity, and decades of experience in international trade, Taiwan is ideally poised to grasp another kind of economic future, one that involves it closely with China. Taiwan businessmen know this; that's why there are a million of them just across the Strait.
The way to deal with fear is by facts and reassurance, not contemptuous dismissal and accusations of closemindedness. The TSU may be a minority party, but it represents a large segment of the populace that fears closer ties with China, and for good reason. You catch more flies with honey.....

If it couldn't forthrightly acknowledge uncomfortable facts (I thought businessmen were realists), AmCham would have been better off to remain silent and instead concentrate on things like Taiwan's entirely unreasonable visa laws, the lack of international schools for the children of expats, and sundry other issues that make Taiwan so painful to the outside world. It is pointless to open up to China if foreign businessmen cannot settle here with ease and assure themselves of schools for their children.

AmCham's topical writings are often highly informative, if you can get past the right-wing bias (the well-known right-wing nut poster at Forumosa, "Fred Smith", is actually an AmCham official), and I recommend reading the back issues. The cover story of the most recent issue, Power Supply Blues, for example, does offer a few facts about Taiwan's power situation, but evinces that unreasoning real-men-love-nukes passion for nuclear power that causes people to write all sorts of nonsense about them while denigrating renewables. Also interesting is the advertizement/editorial on the problem of fake fertilizers in Taiwan (If You Don’t Penalize the Infringers, You are Penalizing the Law-abiders), a problem I was not aware of. Also of interest is their take on a US-Taiwan Free Trade Agreement, which seems unlikely at the current juncture.

7 comments:

Sun Bin said...

The sundry other issues are fine. But that still missed the big picture.

AmCham's point is, if Taiwan is satisfied as a medium/small size economy to the world (i.e. 23M people market), these sundry issues are all fine and appropriate. But if you are looking for growth, and leverage. You need to face the reality.

A reasonable question is why Taiwan cannot settle as a medium size economy. Well, the problem with that is, everybody in the world (incl Japan. Korea, Singapore, even US, CAFTA) are leveraging its neighbors. So unless Taiwan want to become a Myanmar or the Ming Dynasty or pre-Meiji Japan isloationist......

Michael Turton said...

I don't think the choices are as dramatic as you make out. Taiwan could be a decent place to live and free of exploitative arrangements with neighbors. The problem is that people want oo much, they think it is somehow bad to live in a medium sized economy with 4% growth, good incomes....

Anonymous said...

Well said... Michael... with 4% stable economic growth! Just look at the KMT, it was so greedy that their territory included PRChina and Mongolia! And, where are they today... lol?

BTW, what I would like to see from Taiwan IS our own top global BRAND, and that means OBM not OEM/ODM? Besides, they are cheap labors all over the place aside to just China!

Iron_Jackal_TW

Anonymous said...

Michael, do you know why China is so in need of money right now?

The reason is because of 2008 Olympic Game. Chinese are a very 'Save Face' people. They want to use someone's capital to build their new and improved city to show off to the world. Clean out all those old buildings sort of speak and replace them with new improved buildings all with courtesy of Taiwan's capital if we are dumb enough to pay for it.

Sun Bin, do China have all the cheap labors in this world? No, they don't because cheap labors are everywhere around Taiwan. Don't ever threaten us with that tone. We, Taiwanese, don't owe you, PRChinese, a damn thing, and we got better economic plans than what you have in store for us!!

Iron_Jackal_TW

Charlie_Six said...

I used to think Taiwanese independence was a good thing, as my dad's from Taiwan and he was part of the Nationalist military. But after reading Philip Short's book "Mao: A Life", I don't understand how Taiwan can be defended by anyone. The Kuomintang lost the war in every way imaginable, and then unarguably stole Taiwan from the victorious Chinese government.

I think Taiwan is a better country than the PRC, but the land itself is stolen and no amount of ideological superiority should make stealing forgiveable.

You say that Taiwan is a democracy, but come on... Taiwan became a democracy only after expelling/killing everyone who disagreed with the Kuomindang in the first place. It's a very hollow democracy. The vast majority of Chinese people supported the Communist side of the war, according to Philip Short's book.

Michael Turton said...

I don't understand how Taiwan can be defended by anyone. The Kuomintang lost the war in every way imaginable, and then unarguably stole Taiwan from the victorious Chinese government.

Ummmm....no. They stole it from the Taiwanese. Taiwan never belonged to China, and no ethnic Chinese emperor ever owned it. No agreement that has force in international law disposes of Taiwan's sovereignty. Hence, it now resides with the people of Taiwan.

And at the moment, it is the Chinese who are trying to steal it.

Taiwan became a democracy only after expelling/killing everyone who disagreed with the Kuomindang in the first place.

Well, no. Quite a lot of people who disagreed with the KMT were left alive to continue the struggle, and eventually they won.

And our democracy may be hollow, but it beats anything in any other Chinese society. And most other countries on earth.

Michael

Anonymous said...

Charlie six, Taiwan was never even a democracy when there was only one party rule. Now that there are real competing parties, Taiwan is the only real democracy Chinese can call their own in the world. And mainland China would love to swallow it up. A nice nonviolelnt way to do that would be to make economic ties even closer than they are now.