Saturday, March 20, 2010

Thoughts on fooling oneself

Online death threats against President Ma's daughters and Ma himself made the news this week, although it looks like the former is a protest move. Such threats serve no one.

Threats or not, Ma's popularity remains in a ditch, and is likely to stay there for the foreseeable future. Both the prediction market at NCCU and current polls appear to say Ma would lose if the election were held today, though much depends on who the DPP runs. The Liberty Times trumpeted today (via Taipei Times translation):
The embarrassing truth about how President Ma Ying-jeou (馬英九) has concerned himself with electioneering rather than running the nation is becoming clearer by the day. Despite this, his approval rating keeps falling. Not only Taiwanese, but also foreign academics are starting to doubt his chances of re-election.

Shelley Rigger, associate professor of political science at Davidson College in North Carolina, recently said Ma’s prospects for re-election look bleak because of his abysmal approval rating and public dissatisfaction with the Chinese Nationalist Party (KMT).
But the Liberty Times is wrong on what Rigger thinks; Rigger said in a Q&A session at a hearing this week that she thinks Ma's chances of losing in 2012 are remote. But then she believes him competent, too. It's striking to read the Liberty Times editorial and see how remarkably fact-free it is; not a single policy, poll, or survey is cited, and it comprehensively misunderstands Rigger's position on Ma. There's a better piece in today's LT that more correctly describes and addresses Rigger.

I was reading an interesting piece the other day (sorry, can't recall where) that asserted that studies show that when an erroneous position is not refuted, belief in it is low, but when it is publicly refuted, belief in it rises dramatically, a sort of academic confirmation of Darwin's observation that false theories quickly die, but false facts are impossible to kill. Counterintuitive results like that one may help explain the ongoing problem in my own family that is replicated across many Taiwan families: gangsters preying on seniors. No matter how many times we explain to my father in law, no matter how powerful our evidence, no matter who presents it to him, he continues to believe that the storage sites for ashes in local columbariums actually exist and that he will make a killing on their sale once they are sold. It's basically swampland in Florida....

My sister in law walked into their house the other day to find him once again handing over NT$90,000 to scammers right in his living room. She was shocked; most everyone in our family could use the money, but he gives it to complete strangers for nonexistent investments. She found out that the scammers had loaded the families onto buses and then driven them around northern Taipei county, pointing to columbariums and saying "yours are here, and your sites are there," etc. Could it be more completely transparent?

It's not like everyone hasn't talked to him about it. Not only my savvy investor brother in law, who is a sought after manager in local tech firms, my wife, myself, my sister in laws, both highly educated, but also a relative who runs a funeral home and knows all the sites personally have all carefully explained to him that it is all a scam. Moreover, he lost all his life savings in a previous scam but still hasn't learned to be cautious. All over Taiwan, families face this problem. It's one that is in serious need of government action, one that could benefit whatever party tackled it.

Twain once said that you can't reason a man out of what he wasn't reasoned into. But surely, there must be a way. Because after their savings comes the house they own...
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AWESOME: Virtual Drive down Highway 11 (h/t to Kerim)

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Friday, March 19, 2010

Expanding Colossal Financial Aggregations

We're trying to help you, Oxmyx."
"Nobody helps nobody but himself."
"Sir, you are employing a double negative."

The flow of good commentary on the ECFA agreement between the KMT and the CCP continues unabated. Pick up local business magazines and you can read articles entitled: ECFA: elixir of life or poisonous brew? and similar. Today the Taipei Times offered an excellent piece by the pro-Taiwan Taiwan Think Tank's Chien Yao-tang that highlighted both the propaganda drive and the eventual negative effects. First he points out that the two generation gap in wafer fabrication technology that President Ma has proposed to protect Taiwan's tech is actually an illusion:
The only restriction the Ma administration placed on this opening up of Taiwan’s electronics sector was that the production technology for wafer fabs in China lags two generations behind Taiwan’s. While it may sound like this seeks to minimize the loss of Taiwan’s cutting-edge technology to China, it is in fact a sure way to hand over technological know-how to China.

.....

In addition, there is a two-generation gap between Taiwan’s United Microelectronics Corp (UMC) and China’s Hejian Technology, which UMC wishes to acquire.

If this happens and Hejian increases its production technology to the same level as UMC’s, does that mean UMC will have to pull out of Hejian? Of course it won’t. So in reality, the two-generation gap in technology is just to dupe the public.
Needless to say, the DPP program was to protect this industry and curtail its ability to move to China. Ma's program is to hand it over to the Chinese. Oh, and the elimination of tariffs that the Ma Administration has claimed Taiwan will need to keep its markets in China in the face of the free trade agreements? What's the actual tariff on Taiwan's exports to China, according to Chien?
The average rate is 0.58 percent.
ECFA's benefits are an illusion. Luo Chih-cheng of the pro-Taiwan Taiwan Brain Trust observed in another Taipei Times piece that some Taiwanese firms in China don't want ECFA but are either directly pressured, or not saying anything for fear of retaliation by Beijing or the KMT. The Ministry of Economic Affairs (MOEA) said that additional industries will be hit by Chinese goods, raising the number to 17 from the 12 originally predicted.
The five additional sectors are: traditional Chinese herbal medicine, agricultural pesticides, environmental medicines, veterinarian medicines, and wood and bamboo products.

The original 12 sectors are garments, underwear, sweaters, swimwear, towels, bedding, socks, footwear, suitcases, home appliances, stoneware and ceramics.

The government has also put restrictions on Taiwanese banking investments in China....
From the Taiwanese side, to ease concerns that the Taiwanese banking sector may use local deposits to fund its loan businesses in China, the commission’s new regulations stipulate that half of the loans to be granted by the banks’ to-be-established outlets in China will have to come from Chinese depositors. The commission has also placed a cap on each Taiwanese bank’s China-bound investment at less than 15 percent of a bank’s net worth or 10 percent of a financial service provider’s net worth.

All of this means that the capital outflow of 14 Taiwanese banks to China will be capped at NT$25 billion (US$785 million), while that of 13 financial service providers will not exceed NT$50 billion.

To a certain degree, both rules aim to put a brake on the acceleration of China-bound capital flight within the banking sector, which was previously barred from branching into China.

This contrasts with earlier estimates by China Development Industrial Bank president Simon Dzeng (曾垂紀), at the time executive vice president at Mega Financial Holding Co, that once the government gave the green light, most domestic banks would move into the Chinese market “within three months,” resulting in a fund outflow of as much as NT$300 billion.
What's Mega Financial Holding Co? Well despite the name, it is not something out of The Jetsons or Destroyer Duck. Hold that thought....

Sorting out the links between the US financial industry, China, and Taiwan is going to be a full time job and I sure am glad I won't have to be doing it. But just a taste: prior to the 2008 election the global finance world was backing Ma, and is now getting its support returned in the ECFA agreement. A friend flipped me the Taipei Times editorial I linked to above, and this seemingly unrelated piece in the China Post, with Ma congratulating Park Strategies on opening its office in Taipei:
President Ma Ying-jeou described a U.S. strategic consulting firm's decision to set up its Asia operations center in Taipei as "wise" during a meeting with former U.S. Senator Al D'Amato, founder and managing director of the company, at the Presidential Office Thursday.

....

D'Amato said Park Strategies chose Taiwan as the location for its operations center in light of the vast business opportunities expected to be created with the warming relations between Taiwan and China and a proposed economic cooperation framework agreement likely to be signed between the two sides.
The VP of Park Strategies is Sean King, and some of his articles are listed here. King, a big fan of President Ma, is a former Senator D'Amato staffer, D'Amato himself having a long and very positive interest in The Beautiful Island. Recall that a financial industry official told me shortly before the election that the financial industry had been lining up players in anticipation of a Ma victory for two years. ECFA is not just about selling out Taiwan to China....or rather, not everything sold will be sovereignty. But it is who is doing the buying and selling that is interesting.

Past and present commingle: when the KMT came over in 1949 the bond holdings of Chinese, Taiwanese, and Japanese (Jan 2010 lawsuit in US on the issue) were converted into assets of the Bank of China, which is now a unit of Mega Holdings, and which is named in passing a lawsuit against the KMT to recover the monies. An article on the lawsuit notes:
The bonds have exotic names like Imperial Chinese Government Hukuang Railways Gold Loan, French Boxer Indemnity and 1913 Reorganization Gold Loan and they are all in default.

Holders of Chinese bonds issued from 1895-1942 which are all in default since 1949 are taking on the former masters of Nationalist China – the Kuomintang. The bondholder plaintiffs which include two American bond holding corporations and the Taiwan Civil Rights Litigation Organization are suing the Kuomintang’s business management committee for an accounting and redemption of 120,000 separate bonds some over 110 years old and backed by gold.

The name of the case filed in the United States District Court for the Northern District of California is Taiwan Civil Rights Litigation Organization et al v. Kuomintang Business Management Committee – Case No. C10-362JL.
What's Mega Financial Holdings? This little blurb on Grand Cathay notes:
Unlike most other Taiwanese securities firms, which are owned and operated by family groups, Grand Cathay is owned by a group of institutional investors. The largest shareholder of Grand Cathay is an investment arm of the KMT (Kuomintang), controlling 25% of the firm. Although the KMT is no longer the ruling party, it is not expected that its status as the largest shareholder of Grand Cathay will change over the near term.
That investment arm of the KMT? Oh yeah -- Mega Holdings.

Recall that the Financial Supervisory Commission has said that the current restrictions on Taiwanese bank investment in the PRC will be relaxed over time.

Yes, and a big beneficiary will be big institutional investors...like Mega Holdings, the investment arm of the KMT.

Manus Manum Lavat.

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Naval Gazing

The Jamestown Brief, consistently useful on China, offers a piece on Taiwan's navy this week:
The outlook for ROCN sea control is worsening by the day. For one thing, in the event of an imminent conflict, Taipei must contend with the likelihood of a preemptive attack from China’s growing force of short-range ballistic missiles, which can strike at targets like ports and airfields [3]. With the ROCN fleet concentrated in a few ports like Tsoying, Suao and Keelung, this constitutes a critical vulnerability in the island’s defenses (GlobalSecurity.org). In a much-discussed 2008 article, William Murray of U.S. Naval War College opines that China “has shifted its anti-Taiwan military strategy away from coercion by punishment toward denying Taiwan the use of its air force and navy.” Neither the ROCN nor the Republic of China Air Force (ROCAF), says Murray, “is likely to survive such an attack” [4].
The meat of the piece: what do Chinese observers of the ROC Navy think?
Chinese observers by and large agree that, for a variety of reasons, the Taiwan Navy is not up to par regarding the sea-control functions outlined in the ROCN Vision. Condescension pervades Chinese analyses of the ROCN. Writing in Modern Navy, Yang Peng notes that Taiwan’s surface fleet is acutely vulnerable to guided missile-strikes. The fleet’s AAW pickets are particularly susceptible to saturation missile attacks (baohe daodan gongji) and rely excessively on the protective umbrella hoisted by tactical air power [8]. Yang forecasts that Taiwanese ships will hesitate to venture beyond the range of land-based air cover. This reticence severely constricts the Taiwanese Navy’s tactical radius. Wu Letian not only questions the Taiwan Navy’s ability to prosecute anti-submarine and minesweeping operations, but also deprecates its capacity to fight at sea for very long [9].
We're wholly reliant on the US here in Taiwan. FAS has a complete list of ROC navy ships. Note that the Taiwan navy possesses many fast attack craft which are not covered in the Jamestown brief discussion. This force could probably do useful damage and deterrence in any cross-strait invasion scenario, and should probably be expanded. There is a useful description of them at GlobalSecurity.org....
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Monday, March 15, 2010

Evolving Colonial Formosa Again

Idle speculation: I was reading the speculative articles on the Brobdingnagian engineering project of running a vehicle tunnel under the Taiwan Strait to connect Taiwan with China. This got me thinking about water: anyone ever thought that Taiwan, with its massive water surplus (80% of the water that falls on the island runs back to the ocean) is an ideal place for a water deficit nation like China to grab? Maybe you never did, but I'd bet dollars that the CCP brain trust has. In contrast to a vehicle tunnel, running a large water pipe under the Strait is a simple and strai(gh)tforward engineering problem.

Reuters published an unintentionally humorous interview with KMT Secretary-General King Pu-tsung, Ma's hatchet man, known as "little knife". The Reuters reporter who did the interview, Ralph Jennings, is on the ground in Taipei and had no trouble identifying the problem locals have with Ma's policies (unlike some):
The KMT and DPP will face off in tense local elections at the end of this year that are seen as a bellwether for the 2012 presidential race. The KMT has already lost seats in recent by-elections on voter concerns over its pro-China policy.
King comically assured all readers that everything was going to be peachy-keen:
"ECFA can be a turning a point. Wen Jiabao said he's going to yield benefits to Taiwan, so how can you say the deal would sell out Taiwan?" King said.
Wen Jiabao said it, I believe it. Everyone knows that China's leaders are inveterate truth tellers.

There's been quite a few pixels expended in debating the effects of ECFA on Taiwan industries, but less of a focus on the way Taiwan, as a Liberty Times commentator noted a couple of weeks ago, is becoming a de facto colonial holding of China: as its industries are sucked into China's maw, the island is gearing up to supply plastics for processing, steel, and other basic industrial materials. China is not only de-industrializing the island; it is returning it back to the 1930s when Japanese planners envisioned Taiwan as a place that would provide basic industrial and agricultural inputs like rice, timber, camphor, and sugar. Former Taiwan rep and international trade specialist Benjamin Lu pointed this out in a Taipei Times interview:
“I certainly don’t believe that the proposed ECFA will provide any opportunity for Taiwan to increase its exports to the PRC [People’s Republic of China],” he said. “The reason is that what we can manufacture in Taiwan can be manufactured in mainland China at a much cheaper price. We have no competitive edge at all, even with the concession of a tariff provided by ECFA, if there is any. There is a slight chance for Taiwan to export more tropical fruit to mainland China and some semi-finished products.”
We have already seen this reversion in Mailiao, where new petrochemical and steel plants, running on state-subsidized water (supplied by a hugely destructive dam in the mountains above it), will supply the Chinese market, but another complex is going in Changhua which will borrow water and hurt a wetland (Chinese). Not just waterfowl are suffering: the Formosa Plastics coal-fired power plant at Mailiao is the fifth largest single human source of CO2 on earth. Going in Changhua is the Changgong Power Plant, another coal-eating monster that when completed will edge out the Mailiao plant to become number four. The plant is being built to serve Changbin Industrial Park, slated for completion this year, on the coast north of Lukang. This entirely retrograde industrial movement, for the sake of China, is punishing Taiwan's dwindling natural resources and warming the earth. Our industrial structure is not the only thing being shaped by increased contact with China.

Taiwan News argues in another hard hitting editorial that the title of the cross-strait economic agreements constitutes an acceptance of domestic status vis-a-vis China, in contrast to Ma's promises that ECFA will not impinge on the island's sovereignty. To wit:
After all, a cursory review of trade agreements between Beijing and other countries indicates that the PRC is meticulous in ensuring proper "protocol" and insisting on the use of formal titles. The innumerable examples include the "Framework Agreement on Comprehensive Economic Co-Operation Between the Association of Southeast Asian Nations and the People's Republic of China" signed on November 4, 2002.

The only exceptions appear to be pacts between Beijing and the subordinate "special administrative regions" of the former British colony of Hong Kong and the former Portugese colony of Macau.

In both of the "closer economic partnership agreements" (CEPA) signed with the Hong Kong Special Administrative Region (HKSAR) and the Macao SAR on June 29, 2003 and October 18, 2003, respectively, Beijing refrained from using its formal status and instead used the term "Mainland" (literally "neidi" or "inside territory" instead of the usual "dalu") and the geographical phrases "Hong Kong" and "Macau."

Through footnotes, the preambles of both CEPA pacts also explicitly define "the Mainland" as referring to "the entire People's Republic of China," which includes the two SARs.

The "cross-strait economic cooperation framework agreement" title apparently agreed upon by the KMT and the PRC's ruling Chinese Communist Party departs from international protocol and is also by no means "ambigous." Instead, its use constitutes direct evidence of acceptance of a "domestic" status within the PRC parallel to that of the Hong Kong and Macau "special administrative regions."

Hence, the refusal of the Ma government to insist, at the very least, that the formal WTO titles of both parties be used in the title and body of the ECFA constitutes a profoundly "political" concession of our international legal status as a state or "economic legal entity" and has troubling implications for Taiwan's sovereignty and economic autonomy and horizons.
For Beijing, ECFA is about annexing Taiwan. D'oh. James Wang commented in the Taipei Times on ECFA, saying it is pretty clear what Beijing wants:
Once Taiwan buys into the “one China” principle, Beijing will be taking a mile for every inch given to it and say “thank you very much.” It will be reaping its “early harvest,” alright: a present of Taiwan’s sovereignty. It may even well mete out its concessions and remove the odd missile or two, orchestrating a “warming” of the Taiwan Strait situation and pushing for “peace talks.” This would, in turn, make all the more plausible China’s case to the US that there is no real need to sell arms to Taiwan.
All you can say is BINGO. Meanwhile government officials continue to insist ECFA will be signed in the very near future. Please note the government's constantly shifting rationale for it -- remember when we had to have ECFA IMMEDIATELY to save the economy? Oh yeah, two years have passed with no ECFA, but we have recovery already now with the links to the China market we already had under the DPP. Then it was to prevent marginalization by the ASEAN FTAs -- which have turned out to be not so great for those trading with China. Note also that the announcement is from V-P Vincent Siew: remember when he was the amazing technocrat that Ma promised to make Czar of All Economies in Taiwan? Yea, verily, it was the bright spring of our naivete.

In other ECFA news, AFP reports that Taiwan's financial industry wants to be able to take a 30% stake in Chinese banks.
The government hopes such a move would let any individual Taiwanese bank to buy up 30 percent of any Chinese lender, as opposed to the current 20 percent ceiling China imposes of foreign investors, the Commercial Times said.

It said Taiwan also hopes its banks will be allowed to open branches as soon as they enter the mainland market, instead of having following the prerequisite that foreign banks have to first open representative offices for two years.
As I have been saying, the main beneficiary of ECFA is going to be the financial sector; local manufacturing industries are going to be decimated. Will China really let Taiwan take out stakes in its financial sector? That isn't how China works.

Businessweek offered another China Pessimism article: biggest bubble in history. Because China is so opaque, it is hard to make judgments about what kind of handle the government has on the problem. Yet, if you recall famous Taiwan scandals that occurred in the credit sector during the martial law era, such as the massive Tsai family conglomerate collapse, one might argue that the authorities in authoritarian states show a marked reluctance to put a stop to things once the size of the problem grows. Hence that chilly feeling between the shoulder blades when one contemplates China's bubble -- you know that bubble economy that Ma desperately wants Taiwan to graft itself onto. Wouldn't it be ironic if ECFA came online just as China's growth went ka-boom!

Idle speculation: is the desire to annex Taiwan a factor in keeping China's yuan down? The material basis for Taiwan's independence is its vibrant industrial base, which will undoubtedly be stimulated by a rise in the yuan, both in terms of rising demand for exports when the currency appreciates, and because as the cost of manufacturing rises, firms will move out (and back to Taiwan).
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"Elections" are a problem for Taiwan

In Patterns of Force, Kirk and Spock beam down to a planet to find a Federation historian named John Gill, who apparently turned the place into a Nazi state (compete with I vant to make you talk hot Aryan chick). Kirk and Spock interrogate Gill, drugged and used as a figurehead:
Kirk: “Gill! Gill! Why did you abandon your mission? Why did you interfere with this culture?”
Gill: “Planet . . . fragmented . . . divided. Took lesson from Earth history.”
Kirk: “But why Nazi Germany? You studied history; you know what the Nazis were.”
Gill: “Most efficient State Earth ever knew.”
Spock: “Quite true, Captain. A tiny country, beaten, bankrupt, defeated, rose in a few years to stand only one step away from global domination.”
Kirk should have smacked Spock right down, as this is total nonsense: Nazi Germany was an illegitimate, bureaucratized, inefficient, inept nightmare, as numerous books on its economy and war conduct have chronicled. But for some reason one hears from time to time of the "efficiency" of authoritarianism, especially in the encomiums for Chinese growth. There's plenty of appeal to this idea in the discourse surrounding democracy in Taiwan, particularly in the Blue papers.

Lately there has been a spate of stories on the problem of "elections" in several newspapers that appeals to this feeling that somehow, democracy is inefficient. The China Times claimed the other day that Elections Hijack Taiwan. Commenting on resigning health minister Yaung's claim that elections have hijacked public policy in Taiwan:
For a long time, politicians from the Kuomintang and Democratic Progressive Party (DPP) have been reluctant to unveil public policies before elections in order to avoid displeasing voters.

But the passive attitude of politicians in doing nothing to please voters does not necessarily work, as evidenced by the results of the 2008 legislative and presidential elections when the then ruling DPP suffered consecutive losses.

In the run-up to the elections, it froze domestic gasoline prices out of election considerations to spare consumers from skyrocketing crude oil prices, but it also cost the state-run petroleum giant CPC Corp., Taiwan tens of billions of dollars.

In Yaung's view, Taiwan is a mature society in which the majority of the people are rational enough to cope with hikes in oil prices and insurance premiums.

If the politicians are right that the government should not move to carry out policies that could upset voters before elections, then the country will not be able to move forward.
The Apple Times similarly argued:
Although the ruling Kuomintang (KMT) has an absolute majority in the Legislature, many of President Ma Ying-jeou's campaign promises have failed to materialize. The reason behind this is that politicians and policies have all been held hostage by elections.

The latest example is a draft amendment to the Civil Service Performance Evaluation Act, which would require that government employees be dismissed if they get a "C" rating for three consecutive years. The bill drew a strong backlash from civil servants, who threatened to oust the KMT in the next elections.

As expected, Ma was frightened and decided to meet with Examination Yuan President Kuan Chung and Legislative Yuan speaker Wang Jin-pyng next week to try to sort out the differences. While we are not surprised that Ma would backtrack on his policy, we feel sad and helpless.

Who is the target audience of this show? It is the sitting duck taxpayers like you and me. Allowing elections to hold politicians hostage and extort them is the greatest misfortune of Taiwan's democracy.
There is a common claim in Taiwan that the island has become more disorderly since the advent of democracy -- it is practically a given that when you hear someone make that claim, they are Blue.

The problem lies in the construction that the cause is "elections." The problem in Taiwan is not the politician's need to get elected, but a public that has been coddled for decades by absurdly low water prices, absurdly high interest rates on savings for the bureaucracy (and other breaks such as low interest loans for homes for teachers), subsidized gasoline and electricity prices, low NHI fees... these are merely highly sophisticated versions of vote buying whose budgetary pigeons are now coming home to roost. The real problem is the political mentality that says it is ok to pay for tomorrow what we buy today, that lacks the political will to explain to the public what is needed, and treats the public like spoiled kindergartners to be bribed with candy and pretty pictures. This island so needs a progressive, pro-active legislature that takes for granted the political maturity of its public. Kudos to Minister Yaung for leading the way.
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Daily Links, March 16, 2010 + UPDATED meetup info

Drew flipped me this photo from China posted to a bike forum with the invitation to caption this photo. Good luck!

BLOGS
  • Peking Duck with an excellent post comparing brainwashing in China to the recent decision by the Texas School Board to brainwash its own students by omitting and distorting US history. When you legitimate your values via Transcendent Absolute, be it the Laws of History, God, Allah, or the State, the end result is always the urge to control the minds and bodies of others.What is your god but a claim to my mind?
  • Dixteel on the health care issue, says if Taipei City repays its debt, no fee raises for NHI will be necessary. Just another way in which the rest of the island subsidizes the lifestyle of those in Taipei.
  • David writes on Tears and Transitional Justice, reminding us that for all the debates about the death penalty, there is no debate whatsoever on how KMT officials and the associated torturers and murders of the martial law era are to be punished.
  • Photos of rally for Tibet.
  • Michael C with more pics of our trip to Laos.
  • 1.3 billion people left sobbing: Dodgers prefer Taiwan to China.
  • Taiwan Airpower on the U2 training for Taiwan
  • Drew with an excellent piece on our saturday ride around Chingshui, an area rife with interesting local history. A little local knowledge really helps improve rides through urban areas. Drew also writes on his excellent local bike shop and gives advice on choosing your Taiwan bike.
  • May the Froth Be With You.
  • ESWN, always a great place to find T&A, has a post collecting information on the nude woman in Hualien who appeared in Google Drive-by.

MEDIA
  • Textbook example of how China uses the manufacture of "tensions" to attempt gain leverage over the US: China blames US for recent "tensions". Luckily it seems, from watching US officialdom, that the Obama Administration is slowly waking up to the reality of China, the demon summoned by US elites into the international system, which can neither be banished nor shoved back into its pentacle. China Matters argues that the Obama Administration is rolling back Chinese influence in Africa.
  • John Tkacik's remarks that ECFA is a bad idea draw return fire from KMT officials. Also in that article, DPP Chair Tsai Ing-wen observes that identification with Taiwan does not necessarily mean support for Taiwan nationalism. Interesting to see a public acknowledgment of that fact by a DPP leader.
  • The Taipei Times today prints another anti-science propaganda screed from Bjorn Lomborg, the Screwtape demon of denialism. Isn't it time to stop giving the corporate anti-science crowd a voice in Taiwan's most important newspaper? And no, I'm not giving a link to that poisonous crap. Instead, Climate Progress has a discussion of a new book about Lomborg.
  • Rising pay, labor shortages in China have Taiwan industry sourcing staff from Taiwan, or even moving back.
  • Ma promotes ECFA to farmers, saying no ag imports will be allowed. They are not needed; smuggling is already rife. There's a good story there, local journalists!
  • Criticism of government's plans to lower housing prices by massive infrastructure investments in Greater Taipei. Can someone explain to me how local improvements lower housing prices? "What? A park and metro going in next door? I think I'll drop the asking price on my house!"
  • "It was not very strange, then, that Wen juxtaposed an ECFA and peaceful unification on Friday last week, because one is a natural and necessary prerequisite for the other." Good commentary.
  • Central bank is monitoring hot money inflows.
  • Why China drags its feet on Iran. A CS Monitor piece that misses the key advantage China gets by inexpensively reinforcing America's crazed obsession with the Middle East, keeping it from a vigorous effort to confront China in Asia and elsewhere. Once again showing that Israel's most important occupied territory is American foreign policy debates.
  • Civic groups urge government to stop building reservoirs. Like health fees, water prices are too low, encouraging overuse. Building more dams conserves water use the way building more roads lowers vehicle use.
  • DPP candidate for Kaohsiung stupidly claims the DPP mayor of Kaohsiung had him under surveillance.
  • The Apple Daily argues, like a number of other publications, that elections are preventing progress in Taiwan.
  • The Smangus Three win the in Taiwan High Court. Good news for aborigines, says Wild at Heart
  • Taiwanese-American Goodwin Liu nominated for Ninth Circuit Court by Obama (Wiki).


UPCOMING BIKE RIDES AND HIKES:
If you want to come along, everyone is invited!
  • April 3-4 (tentative): Biking the East Coast Rift down 193
  • April 10-11: Reprise of recent ride in Nantou: from Shuili leaving at 10:00 AM to give Taipei residents time to join (take HSR/early train to Taichung, then local train to Shuili) to Hsitou the first day, second day to Shanlinhsi and then down to Linnei for train back to Taipei. Date moved up one week due to friend's wedding. Note to JM: time to unpack that Cannondale.
  • April 24-25: East Coast two day ride -- first day to Changbin, second day leave early to make afternoon train in Taitung and home via south link line and Kaohsiung HSR.
  • April 24: Drew is going on a Paris-Roubaix Tribute Ride. Taichung-Kaohsiung on Highway 17. 260km in one day.
  • Check Pashan for updates on their latest hikes.
  • As always, let me know if you are coming down to Taichung with a bike on the weekend. Although it appears that Taichung is located in a strange tesseract that has no direct connection to Taipei, for the denizens of Taipei appear quite unable to find it and often pass by without stopping.
EVENTS: Next meet up is the 20th, same time and place as always. Speaker is Pavel Suian Ph.D. Professor at Bogdan Voda Unviersity, Romania.Born in Transylvania, Romania, in 1940
Studies of law and international relations in Romania and Amsterdam University (Holland). Ph.D. in international relations.
Topic: Romania as it experienced Communism and later changed directions.

UPDATE: After the meeting, Linda Arrigo will guide a tour of the White Terror cemeteries above Liuzhangli station. $150 cab ride.
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Saturday, March 13, 2010

Principled Resignation

I always enjoy reading comments from China on Taiwan's democracy, such as this excerpt from a speech from a PRC scholar on rule of law in Taiwan. Such principles were on display this week as two cabinet officials tendered their resignations over issues of principle.

First, justice minister Wang resigned over the death penalty....
Justice Minister Wang Ching-feng published an article on March 9 entitled “Rationality and Forgiveness,” articulating her view that the death penalty should be abolished and stating that she would not sign the execution order for any convict on death row during her term in office. Minister Wang’s article induced an angry backlash among the public. Wang wrote that she would insist on doing the right thing even if her opposition to the death penalty meant that she would have to step down.

However, Presidential Office spokesman Lo Chih-chiang yesterday, in a press conference, stated that ours was a government of law, therefore, everything must be done according to the law. The executions of death row inmates must be carried out unless there was a legally sufficient reason for the execution to be stayed, Lo said, adding that otherwise, the Justice Ministry must carry out its duty in accordance with the law.
The local focus was on how the President simply threw Wang to the wolves, refusing to support her. Focus Taiwan translated a China Times editorial that sketched her career as an activist. The editorial observes that the Chen Administration stalled executions because it feared international repercussions. It also hints at a problem within the Administration: when it vetted its appointees for the justice post, didn't anyone ask about this key issue? D'oh.

The Wang resignation also highlights another problem endemic with Ma: the appointment of individuals to high position who come from academic backgrounds and have little political experience. This pan-Blue papers have roundly condemned Ma for this.

The death penalty is highly popular in Taiwan, with widespread public support. It make a cheap target for moralizing. But when it comes to the hard stuff.... it is a shame that Wang's high morals didn't extend to the numerous problems with the Chen Shui-bian detention and trial. Taiwan News gives another take and observes that under the law -- despite claims to the contrary by KMT officials and KMT papers -- she is not required to sign execution orders:
Unfortunately, Taiwan society remains dominated by the hoary and barbarian precept of vengeance and understandable but dangerously vindictive feelings of survivors of murder victims, which ultra-conservative KMT lawmakers are utilizing to stir a reactionary populist storm in order to turn the clock back on Taiwan's human rights progress.

The fuse was lit by Control Yuan Commissioner Chao Chang-ping and other colleagues who declared "orders for the death penalty should be approved by the justice minister and implemented within three days" and threatened to "investigate" Wang for "illegally" delaying executions.

Indeed, Article 127 of the Criminal Code mandates that public officials who do not implement legal punishments are liable for a sentence of up to five years, but this rule applies mainly to prosecutors or jail wardens and not to the justice minister who is not an "public official tasked with implementing punishment" but the chief of the highest administrative judicial agency.

Indeed, there is no article in the Criminal Code that explicitly requires the justice minister to sign such orders and it is evident that the justice minister is granted the "under the law" the discretionary power to sign or not to sign such orders.

Therefore, neither Wang or any other previous justice ministers who refused to sign death sentence orders have transgressed the law and indeed have honored the Constitution through their respect for all human life.
There were even gloating KMT legislators who said that all 44 of the prisoners currently on death row should be executed. Disgusting. The sad part, as many noted, is that with Wang calling attention to the death penalty, which has 70%+ support on the island, it is likely that executions, which had been stayed for the last five years, will resume.

Also resigning this week was the Health Minister Yaung Chih-liang, who bluntly told the Premier that his requirements to confine health fee increases to the upper income brackets wouldn't work. The Premier had wanted 75% of the population to experience no fee increases, but the math doesn't work. Yuang instead had called for 41% of the population to experience slight increases. His resignation has not been accepted.

Take note of the explosive political issue that underlies this, one that shapes so many issues in Taiwan, but often flies under the radar: local government debt. A number of local governments, including Taipei, have not paid their debts to the NHI. It is not just fees that have to rise, but enforcement of payments on local governments as well.

It is obvious to every sentient mind on the island that health fees must go up if the wonderful NHI system is to survive. It would be great if the legislature would sit down and pass a set of fee increases with bipartisan support. I think the government and both parties would be pleasantly surprised to find how quickly the public would adapt.
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Theology vs Reality: Rigger on Taiwan

Some days being a father offers rewards that no material compensation can match. We bought the kids a stand-alone basketball net that came in a box for them to assemble. This morning they called me over for some help. "Dad, look at this," said my DIY intern son in frustration. "When we put in these spacers, the bolt becomes too short to go all the way through the support pipes. We can't put this nut on. What do we do?"

Tears came to my eyes, as they always do when the opportunity to be Dad involves hand tools. "Son," I said, "let me teach you the proper use of a wrench." Firmly gripping the wrench in my strong yet gentle fatherly right hand, I gave the head of the offending bolt a strong bash. Suddenly the threads poked through the other side of the pipe. My children looked on, gaping, obviously drawing important life lessons. "Wow," exclaimed my daughter, "I am so bored."

I don't know what this story has to do with Shelly Rigger's latest piece over at Brookings out this week entitled Ma’s Puzzling Midterm Malaise, so I am counting on the creativity of my readers to make the connection. A longtime Taiwan watcher, Rigger interprets events in Taiwan for the Beltway Establishment, using well-worn Beltway Establishment frames. I had a bad Popperian Conjectures and Refutations moment perusing it, but took some Modernity leave to recover.

Sometimes not too bad, sometimes completely wrong, Rigger mostly sounds like a colonialist missionary trying to explain to the audience at home, in a fair and open-minded manner, the beliefs of the local heathens, which he understands in terms of his own Christianity. As many of the people who shot this piece off to me observed, Rigger does not appear anywhere to get the complexities of local politics. The whole piece is framed in the best Establishment style by the cross-strait relationship, as if Rigger were simply squinting through a telescope on the banks of the Potomac at Taiwan, and was not a trained scholar who has spent many years studying the island.

Rigger opens with a summary of Ma's "accomplishments":
It is two years this month since Ma Ying-jeou was elected president of Taiwan. As he approaches the mid-term milestone, President Ma’s record is puzzling. On the one hand, he has made significant progress toward his most important goals. First, he’s stabilized cross-Strait relations. The tension that gripped Taiwan and China during the Chen years has abated, high-level visits have become routine and the two sides are engaged in energetic negotiations on a wide range of issues.
There are multiple problems with this use of the word stabilized, which appears to be a code term for relations moving in the direction we want in the way that pragmatic in this type of discourse functions as a synonym for utterly lacking in principle. We're not in a period of stability here -- as I noted two years ago, before the current President was elected, Ma's refusal to stand fast on sovereignty means that there is literally no limit to what he can concede except -- as Rigger correctly notes further down in the piece -- what the public is willing to tolerate. The public here sees relations that are non-transparent, have no defined limits, and no clear goals. That is the very picture of uncertainty and instability. It seems the telescopes they use in Washington to peer across the Beltway at the Pacific simply lack the resolution to clearly discern the reality out here.

Note that the passive voice is used to good effect: it is the "tension that grips" during the Chen years. You know, that turbulent, causeless tension that comes like a poltergeist in the night to upset everyone's dreams. The reality is that tension in the Straits is not caused by Chen or by Taiwan, but by China's desire to annex Taiwan. It's fascinating how in every other case of Chinese expansionism, "tension causing" is forthrightly assigned to Chinese expansion. But in the case of Taiwan......

Stabilized? But -- and in every discussion of what Washington puts out we always come back to this but -- there remains the Chinese military build up. Naturally, since China's enormous, destabilizing, and totally unnecessary military build up is a gigantic problem for anyone claiming that Ma has "stabilized" relations, it disappears. Yes, that's right. In this piece there is no concrete reference to China's missiles or military build up, just a vague nod to Taiwan's declining relative power vis-a-vis the PRC. Gee, it sure is hard to figure out why these pagans don't worship at our Establishment altars.

Rigger continues:
What is puzzling is that these successes have failed to endear President Ma to his constituents. On the contrary, his popularity has plummeted since the election, and today his personal approval ratings hover below 30 percent. [evidence skipped] .... Hence the conundrum: Why are Ma’s successes in areas believed to be important to voters – reducing cross-Strait tension and reviving the economy – not boosting his approval ratings or his party’s political fortunes?
Note that both these claims of "success" - reducing cross-strait tensions, and reviving the economy -- are not successes here in Taiwan. From Washington's perspective, perhaps "tensions" have been "reduced", but to make an argument about "tensions" is to confuse Washington's agenda with that of local voters (note how "believed to be important" is a passive construction). There are a million Taiwanese in China working daily. How much "tension" do they experience day to day? None, of course. For most Taiwanese, "tension" as Washington understands it is something that occurs far from their daily lives in the international media, and involves Washington and Beijing, especially now that Beijing is ruthlessly attempting to transfer its anger and anxiety over Taiwan to the Washington-Taipei and Washington-Beijing relationships.

Turning to the economy, voter unhappiness with Chen Shui-bian was driven largely by the relentless propaganda that Taiwan's economy had gone bad, and by the corruption cases. Taiwan's voters want good relations with China but not at the island's expense.

As for "reviving the economy" that is primarily the result of policies put in place under the DPP and under Lee Teng-hui, the results of China's current growth, and the marginal improvement in the US economy. The Ma Administration is not responsible for any of that. Indeed, it has simply seized upon the crash as an excuse to push the ECFA agreements as rapidly as possible while failing to take firm action on the domestic economic front. Rigger missed a golden opportunity to inform her readers that throughout the economic crisis the Ma Administration has appeared almost completely indifferent to the plight of ordinary Taiwanese, something that has profoundly harmed its standing among voters.

The Establishment presentation is not necessarily a factually inept one, but instead, it proposes a slant on events that sanitizes them. For example, Rigger follows the familiar pattern of sanitizing attacks on the headlong rush of the Ma Administration into China's arms as a criticism of the DPP that "might" be true:
A number of factors contributed to the public’s waning trust in Ma. The lack of transparency in decision-making has been a particular concern. DPP leaders suggest high-ranking KMT cross-Strait specialists might be willing to compromise Taiwan’s autonomy in order to reach an agreement with Beijing. They argue that the government’s closed cross-Strait decision-making – including on the proposed Economic Cooperation Framework Agreement (ECFA) – is dangerous, because these specialists, whether out of perfidy or naïveté, might fail to protect Taiwan’s interests.
But as anyone who spends time talking to locals knows, the sudden swerve toward Beijing has caused widespread public anger across the Green and Blue political spectrum. The criticism that Ma is too close to Beijing is not limited just to the pan-Greens. To get elected, Ma promised that he would not impair Taiwan's sovereignty, but he has utterly reneged on that promise. The criticism that Ma is too close to China is not just a DPP criticism -- most KMTers also do not want to become politically closer to the PRC.

It might be nice if Rigger had mentioned that the KMT's own theology is based on annexing the island to China, thus providing a meaningful context for the DPP's analysis of KMT elite behavior. Oh well....

Sometimes Rigger goes badly wrong....
Several of the KMT’s recent electoral set-backs resulted from local politicians rebelling against Ma’s attempts to clean up local politics, a development that further reinforces this impression.
It's 2010 folks, not 1990. Sorry Dr. Rigger, but it is delusional to imagine Ma, a longtime opponent of democracy in Taiwan, is a reformist attempting to clean up local KMT politics. In fact Ma has taken huge hits even in the KMT papers for his inexplicable and often unnecessary support of candidates widely perceived as corrupt (Green version). Another strange moment occurs in paragraph 2:
In Taiwan’s domestic politics, “normal” is a highly-competitive democracy in which the executive is forced to accommodate an active and activist legislature while defending its positions from an energetic – and politically viable – opposition.
Perhaps in some alternate reality Taiwan has an activist legislature, but in this universe Taiwan's legislative performance is widely acknowledged to be awful. Taiwan News reported in the last year of the Chen Administration:
As the Citizen Congress Watch noted in its evaluation of the Legislative Yuan's performance last July, "there is nothing good to say."
In case you think things have changed under Ma, just google public opinion about the legislature in Taiwan; it usually has lower approval ratings than Ma himself (example). I have no idea how anyone who knew anything about Taiwan's politics could write that the legislature is active and activist. Rigger also takes seriously Legislative Speaker Wang's protestations that he would lead the legislature in oversight of ECFA; as far as I know, she is the only person who does.

Of course, no Establishment piece is complete without that Establishment shibboleth, the provocative Mad Chen© who is Anti-China:
Many Taiwanese found Chen’s Sino-phobic policies unnecessarily provocative, but that did not mean they were ready to support blindly whatever policy the next administration proposed. As the pace of elite-level interactions accelerated, the focus of the domestic political debated shifted from restraining Chen’s provocations to scrutinizing Ma’s performance.
Did the domestic political debate "focus" on "Chen's provocations?" I was here for all four years of that in the second term, and in Taiwan, we focused on the economy and on the corruption issue. "Chen's provocations" was a purely Washington concern; in the local arena, the "provocations" such as UN entry -- widely supported by locals -- appeared as part of the debate over Taiwan identity. Once again Rigger is confusing Washington's agenda with that of Taiwanese voters.

As for "Sino-phobic" there is no need to list the large number of accomplishments in cross-strait relations under the DPP. But -- and here is a crucial point -- by using this pejorative rhetorical frame, Rigger paints herself into a corner -- she cannot then explain that Ma has angered Taiwanese by moving too close to China without vindicating Chen's position. That is an inherent problem of using this Washington Establishment frame -- Chen the Mad Provoker juxtaposed with Ma the Tension Reducer -- to explain Taiwan's local politics. That is why there is no clear, concrete mention of a real issue with Ma for locals: too close to China. The best she can do is mention criticisms of the transparency of the process. To say that Ma is "too close to China" is to utter what is currently a heresy in the Establishment theology.

Also missing in this piece purporting to explain Ma's puzzling drop in approval is any mention of the competence issue. Everyone in Taiwan knows that Ma is the Chairman of the KMT (no mention of that in Rigger's piece UPDATE: Yes, it is buried in there.). He's both President and head of the party. The electoral problems thus also stem from Ma's mishandling of local elections and the installation of an unpopular close associate as Sec-Gen of the KMT, King Pu-tsung, whose nickname, "little knife", alludes to his role as Ma's hatchetman. But since the whole piece is premised in the opening two paragraphs on the purely Washington belief that Ma is a competent leader, none of his numerous political failings -- appointing academics with little experience of politics to high office or mishandling the last couple of elections -- can appear here. Yet so widespread in Taiwan is the belief that Ma is utterly incompetent that if you type his name in Chinese in Google Taiwan the first prompt Google offers you is 無能 -- "incompetent." The reader will search in vain for this little nugget of reality in Rigger's piece, however, since Establishment Theology is premised on Ma Inerrancy.

The Beltway Establishment view is concerned -- and quite justly -- with What Beijing Will do, and Rigger spends the last three muscular and generally sound paragraphs reviewing this. While this is nice, it is simply three paragraphs of missed opportunities to more fully sketch the utter failure of the Ma Administration to make forward progress despite having a large public mandate, total control of the legislature, and the ardent support of Washington. This failure can only be explained in terms of the Ma Administration's own pervasive incompetence, and thus, cannot be explained within the framework Rigger has chosen.
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Daily Links:
  • State Department Human Rights Report out on Taiwan. Alas, until the US cleans up its own torture and detention apparatus and puts its architects and propagandizers behind bars, the impact of its human rights reports will be....impaired.
  • J Michael Cole says China is showing worrying signs of fascism. Let's see... concentration camps and prisons for political prisoners? check Suppression of dissent and control of communications networks? check A racially-driven belief in cultural supremacy inherited from discredited 19th century European racial theorists? check Apparent economic success amid global economic meltdown? check Territorial claims on most its neighbors? check Previous conquests providing rationale for current expansions? check A one-party state? check Deluded admirers in western democracies thinking its authoritarianism is more efficient than democracy? check An obsessive focus with the followers of a harmless religion, including controversial claims of state-run murder programs? check A historical mythology driven by an artificial sense of victimhood? check Rapid military build up? check A state-centered authoritarian ideology? check A long history of centralized monarchy with little democratic experience? check Whew! Aren't we lucky that China is nothing like the fascist states of the 1930s, especially Nazi Germany?
  • Michella with a really wonderful post on the reporter as stalker: "As a TV reporter and sometimes-anchor, I get a stalker here and there once in a while. But as a reporter, I also become the stalker sometimes too." My opinion of the outgoing Health Minister just rose again.
  • Taiwanese-American Org interviews child actress Crystal Chiu of the film Children of Invention.
  • Wings Taiwan finds that a bridge near my house sheds light on the construction-industrial state.
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Don't miss the comments below! And check out my blog and its sidebars for events, links to previous posts and picture posts, and scores of links to other Taiwan blogs and forums!

Thursday, March 11, 2010

ASEAN Free Trade Agreements Disaster for all but China

It's really time for the reality to penetrate the debate over ECFA: Taiwan, with so many industries in direct competition with China, is going to be blasted by waves of cheap Chinese junk. The Straits Times has the call:
The China-Asean Free Trade Area (Cafta), which kicked in at the start of this year, has been greeted with little enthusiasm in the region.

A Philippine Daily Inquirer story, headlined 'The China-Asean Free Trade Area: Propaganda and reality', contended that contrary to the positive spin by the country's leaders, 'most of the advantages will probably flow to China'.

A Jakarta Post analysis urged Indonesian companies to 'face the music' and take on the challenge of competition from China. The most telling headline was in Beijing's China Daily: 'China allays fears of Asean nations over Cafta'.
This article begins with Thailand, which China absolutely screwed:
Thailand, in particular, had a bitter experience. In 2005, tariffs for 200 items of vegetables and fruits were abolished. Thailand expected to export tropical fruit to China and import winter fruit from it at zero tariff. But what happened was that Thai farmers of garlic, longan and other fruit and vegetables were decimated by cheap Chinese imports. Worse, Chinese officials reportedly either refused to lower tariffs on Thai imports or left the Thai produce to rot in warehouses.

The Thai experience fanned fears that Asean would become the dumping ground for cheap Chinese agricultural and manufactured products. And that fear is not unfounded.

Already, smuggling of cheap Chinese shoes into Viet Nam has done damage to the shoe industry there. In Indonesia, cheap imports of clothes, toys and electronic goods, often through smuggling, have hurt local manufacturers of such products. What would happen when the floodgates to cheap Chinese products are thrown wide open? It is no wonder that Indonesia has asked for a two-year delay in tariff reductions for 228 items.

The trade and foreign direct investment (FDI) figures are not encouraging either. Since 2004, tariffs between the two sides have been coming down, and Asean's trade deficit with China has widened. From 2000 to 2008, China-Asean trade grew sixfold to US$198 billion (S$280 billion). But Asean's trade deficit also widened five times to US$21.6 billion. Asean's cumulative FDI in China was US$52 billion in 2008. By comparison, China's FDI in Asean was just US$2.8 billion.
This piece, after discussing hopes for change in this situation (yeah, good luck with that), goes on to make the connection between China's duplicitous, mercantile trade policies and its territorial ambitions...
Still, if the Chinese hope to allay the fears of Asean, they should do more to assure that bilateral trade and investment flows are not skewed in their favour. If Beijing cannot reassure Asean that the grouping has little to fear from it economically, how can it begin to address fears over its intentions in issues such as the territorial disputes it has with various countries in the region?
So many of Taiwan's industries have counterparts in China. Cheap Chinese junk is going to go through the island's economy like a tsunami. Hey journalists! Someone needs to ask Ma at a press conference a direct question about these economic realities: how can Taiwan expect to succeed where everyone else is experiencing problems?

Note also that according to the FDI figures, China doesn't reinvest in its ASEAN partners. Money comes in, but it doesn't go out. US Establishment China policy is to tame China by ensconcing it in the global financial and trade system like Gulliver pinned to the sand by the ropes of the Lilliputians. This policy appears to be a failure (except for the well connected foreign policy types making the big bucks off consulting and similar work, which is why the "tame China by binding it to us" approach will always have spokesmen): the world system is finding China too big a mercantilist nugget to swallow.

UPDATE: Walden Bello has a long piece on this problem in the NI (h/t to David in comments), similar to a piece of his I blogged on earlier.

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Wednesday, March 10, 2010

Bader and Steinberg Journey to Beijing

Last week Obama Administration officials Jim Steinberg and Jeff Bader visited Beijing to discuss Czechoslovakia Taiwan with Berlin Beijing. The US state department said....
Deputy Secretary of State Jim Steinberg, along with the Senior Director for Asian Affairs Jeff Bader, are now in Tokyo for meetings with senior officials of the Japanese Government. In Beijing, they had talks with senior PRC officials, including Foreign Minister Yang and State Councilor Dai. The U.S. and PRC agreed on the high importance each attaches to the relationships and their commitment to building a positive, cooperative, and comprehensive relationship. The two sides engaged in an in-depth exchange of views on issues of mutual concern, and they look forward to working together constructively to address these issues. In particular, the U.S. raised concern over Iran’s and North Korea’s nuclear programs, economic, trade and market access issues, and climate change.

The U.S. responded to PRC’s concerns over Taiwan by reiterating that it has followed a consistent approach, pursued by both administrations of both political parties on a one-China policy, adherence to the three joint communiqués in the Taiwan Relations Act, and expectations of a peaceful resolution of the differences across the strait.

Mr. Steinberg and Bader indicated a willingness to try to work together with China to bridge differences and deepen cooperation on areas of common interest.

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QUESTION: Can we follow up on (inaudible). Follow-up on Steinberg’s – Jim Steinberg’s trip to China, you mentioned that there were concerns raised about Iran, North Korea, and climate change. Did you get the sense that there was any forward movement on any of those issues from the Chinese side?

MR. CROWLEY: As we’ve said before, we came into this conversation with different – maybe a shared overall goal. I don’t think an arms race in the Middle East is in anyone’s interest. We do come at it from different vantage points regarding the utility of sanctions, and this is a conversation that we will continue to have with China in the weeks ahead.

QUESTION: Also on China, they announced a military budget which is a bit less than in previous years. Does this respond to U.S. concerns at all? Does this meet the U.S. concerns about a lack of transparency? Is there any reaction to --

MR. CROWLEY: I haven’t – I’ll probably defer to my colleagues over at the Pentagon. It is an issue that we have raised in the past, but I’ll defer to them to characterize it.

QUESTION: On the same visit with Mr. Steinberg, did the Chinese raise any concerns about the recent visit of the Dalai Lama to the White House?

MR. CROWLEY: I do not know. It would not surprise me.

QUESTION: But you don’t know that it came up?

MR. CROWLEY: I don’t know.
Foreign Policy, which seems to be improving week by week, had a good blogpost up at The Cable which cited the usual suspects at CSIS, Bonnie Glaser and Charles Freeman. It noted:
When top Obama administration officials went to Beijing last week, they had a broad agenda for discussion, including Iran, climate change, and North Korea. What did the Chinese want to talk about? Taiwan, Taiwan, and Taiwan.

Several China experts close to both sets of officials said that Deputy Secretary of State James Steinberg and National Security Council Senior Director Jeffrey Bader went to China with the understanding that they would have substantive discussions on some key issues of U.S. interest, but the Chinese side used the opportunity to try to bargain for an end to U.S. arms sales to Taiwan, something Beijing has wanted for decades and now feels bold enough to demand.

"It was all about Taiwan," said Bonnie Glaser, senior fellow at the Center for Strategic and International Studies (CSIS), "The message that the Chinese are giving us is ‘We've had enough; we're fed up. We've been living with this issue of U.S. arms sales for too long and it's time to solve it.'"

The Obama team has been noticing increased confidence on the Chinese side when dealing with the United States, and some officials see that as partly a result of the rise of hard-liners within the Chinese system who advocate a tougher stance toward Washington.
The Nelson Report, the Washington insider report, said of the visit:
"Chinese officials continue to present a skewed version of the Steinberg/Bader visit last week...they continue to encourage the blogosphere to paint the pair as coming to kow-tow, even to apologize for Obama's recent decisions on Taiwan arms and receiving the Dalai Lama.

The latest jab is to imply that Bader and Steinberg tried to "put the blame on Congress" for the decisions...thus denying the fundamental foreign policy and "China management" issues involved."
In the last sentence, Nelson refers to a China Daily report that had Bader and Steinberg blaming Congress and saying that the whole thing was out of their hands. Perhaps it is true, but it is just as likely to be disinformation aimed at Beijing's own domestic audience....

Just another week in China's relations with the world: a Uighur exile was jailed in Sweden for spying for China, downstream from China's dams other countries are complaining about reduced water supplies, and China is pretending to its own people that the US is kowtowing. This Foreign Policy piece argued that China's response to the arms sales to Taiwan and Obama's meeting with the Dalai Lama is confused, and in part is driven by its vibrant and highly nationalist online community -- Beijing has been stoking that nationalism for years, so it shouldn't be surprised that it is now becoming irascible and difficult to control.
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Tuesday, March 09, 2010

Upcoming Events: Meet Up, Bike Show.....


Plenty of stuff going on now. ...

If you are filling out the US census and you are Taiwanese-American, be sure to put that down on the form!

The Bike Show is next week in Taipei. I'm looking for low prices on shifters and wheels. How about you?

Advance notice: Breakfast Club Meet Up is MARCH 20. Speaker is Pavel Suian Ph.D. Professor at Bogdan Voda University, Romania.

The latest issue of Taiwan Communique is out:
We are pleased to let you know that the new issue of Taiwan Communiqué is just off the press (attached). This issue starts with an overview of the debate on the Economic Cooperation Framework Agreement (ECFA) with China, which is heating up in Taiwan. Many in Taiwan have major hesitations, as it not only ties Taiwan too closely to China, but it infringes on Taiwan’s sovereignty and democracy.

We then present the results of a series of local by-elections in which the DPP did very well, bringing back some balance to the political landscape in Taiwan. What are the implications for the “Big Five” elections at the end of this year, and the Presidential elections in 2012?

Then we briefly touch on the January 2010 decision by the Obama administration to sell arms to Taiwan, and how this can be seen as part of an overall reassessment of how China is viewed internationally following the Chinese obstruction of a meaningful accord at Copenhagen, the Google affair, and other situations where the Chinese authorities have run roughshod over concerns about human rights and democracy.

We then focus on several developments inside Taiwan, where the erosion of justice and democracy is continuing, not only in relation to the appeal trial of former President Chen, but also the indictment of the prosecutor-general, and the passage of amendments of the Local Government Act, which inhibit good governance and democratic principles. This is followed by a brief overview of this year’s February 28th commemorations, and a criticism of a 2009 inquiry into political murders of the 1980s, which amount to a whitewash.

The Report from Washington gives a brief summary of the DIA report on Taiwan’s air power, and touches on the beef issue between The US and the Ma administration. This is followed by an In Memoriam on Jim Lilley, the former US diplomat who passed away in November 2009.

We close this issue of the Communiqué with a book review of The Spanish Experience in Taiwan, 1626-1642, an exciting new work on the Spanish colonial experiment in Northern Taiwan in the beginning of the 17th century.
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Daily Links
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Monday, March 08, 2010

Taiwan's gender imbalance

My friend Kerim Friedman tipped me off to this piece at Language Log on on literacy and the sex ratio. It observes:
I was spending a pleasant portion of a Sunday morning reading a shocking article in The Economist on The Worldwide War on Baby Girls. One of the sad conclusions of that article is that the preference for male babies, which in some parts of the world is driving the ratio of male to female births to as high as 130 male births per 100 female, is actually getting worse as education gets better in some parts of the world. One of the points made is that "[i]n China, the higher a province’s literacy rate, the more skewed its sex ratio."
The post's author then went on to make a graph that illustrates his point: the higher the literacy, the higher the gender imbalance in favor of males. Is Taiwan any different?

Taiwan Today offered this summary of Taiwan's gender imbalance issues yesterday:
Over the past five years, the imbalance between the sexes at birth in Taiwan ranged between 108 and 109 boys to 100 girls. The figure is far higher than the ratio of 105 to 106 suggested by the United Nations, according to the Ministry of the Interior.

MOI data show the sex ratio at birth in Taiwan from 1955 to 1986 was within the U.N. scale. It began rising in 1987 and in 2004 was 110.7 on average, the highest in the ROC’s history and topping countries around the world.

“This figure was even higher than that in China, which has a one-child policy,” said Ho Bih-jen, secretary-general of the National Alliance of Taiwan Women’s Associations, March 5. “The proportion dropped in 2008, but was still the third-highest in the world.”

.....

According to the MOI, in 2004, the sex ratio at birth for first child was 108.7; for second, 109.4; for third, 122.6; and for the fourth, 122.8.

....

“But in recent years, the South Korean government has forbidden obstetricians from revealing a baby’s sex before it is born. Today, the country is no longer in the top-three list,” she said. “Parents in Taiwan still tend to give up having a baby when they learned of the fetuses’ sex.”

Ho said if Taiwan’s sex ratio remains on track, in 10 years there will be 200,000 fewer girls than boys. “This grave imbalance would create serious social problems such as sharp decline in birth numbers.”
As this article on the similar phenomenon in Korea describes, not only does the sex ratio mean fewer women to bear babies, it also lowers the fertility rate because couples stop having children when they hit their first son. Further, as birth order increases, so does the sex ratio -- the last kid is more likely to be a son, since couples stop when they reach a boy. This leads to another weird family shape I have seen in Taiwan several times but not elsewhere: families with 4,5,6 or even 7 girls as mom and dad fail to get a son despite repeated tries.

One has to wonder about the other social effects. If girls are more likely to be raised in families where there are more kids and they get proportionally less attention, what are the results on things like self-esteem, competitiveness, negotiating skills, or independence? If boys are more likely to be raised in families where they are only children, or the youngest child, what are the likely effects?
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