Taiwan Insights

Taiwan’s tea – more than just a drink

2010-07-09T11:00:00.000-07:00

Tea production technology was introduced to Taiwan from Fujian province (southeastern China) in the late eighteenth century. During the Japanese colonial rule (1895-1945), tea was Taiwan's largest export item. Today, it is an important part of people’s daily routine in Taiwan.

Well before science discovered the many health benefits of drinking tea, the Taiwanese people were drinking tea to satisfy their thirst or when spending time with friends. These days, tea has been shown to combat all sorts of ailments (cancer, heart disease, lower cholesterol, burn fat, prevent diabetes), converting more Americans to the taste of tea.

Taiwan’s teas can be classified into three broad categories: non-oxidized tea (green tea), fully oxidized tea (black tea) and semi-oxidized tea (including Pouchong tea, Oolong tea, Tie Kuan Yin tea). Among the three, Oolong tea is the most unique and popularly cultivated on the island. There are 20,700 hectares (51,150 acres) of tea plantations in Taiwan, with a total output of 20,300 metric tons (22,377 American short tons) of tea per year. Taiwan tea was originally cultivated for export, but in the 1980s, that began to change. Now only 10 percent is exported and the rest is cultivated for domestic consumption.

With the rise in Taiwan’s living standards, drinking in tea houses has become popular as a leisure activity, a place to rest, drink tea and socialize. The quantity of tea consumed per person per year in Taiwan has increased from 577 grams in 1980 to 1,500 grams in 2000.Taiwan’s tea industry has also undergone plenty of changes, with the popularization of cold and sweet tea drinks, and in particular, with the introduction of bubble teas. Originating at the Spring Water Ice Tea House (Chun Shui Tang) in Taichung, Taiwan, bubble tea is a frothy drink that includes small tapioca pearls, tea, condensed milk and syrup. Introduced in 1988, bubble tea has become a well-known Taiwanese drink. Its popularity has spread from Taiwan to Hong Kong, China, Southeast Asia, Japan and the United States. Today, tea houses serving bubble tea can be readily found on both the US east and west coasts.

(Courtesy of the Government Information Office, Taiwan Tourism Bureau and Ten Ren Tea)

Taiwan's tea dynasty strives for markets and cultural presence

2010-07-09T10:59:00.000-07:00

At one time, the only brand of tea that most Americans had heard of was Lipton’s, served either hot or iced. Thankfully, American tea drinkers today have become more sophisticated and educated about the art and culture of quality teas from Asia. At the same time, people in Taiwan have discovered a love for premium coffee that would have seemed very foreign even twenty years ago. Between the two cultures, businesses have had to adapt to satisfy the taste buds of both cultures and to compete in an increasingly niche markets.

Ten Ren Tea establishes strong brand image

In the United States, one of the biggest tea importers is Ten Ren Tea. Founded in 1953 in Taiwan, the business has grown steadily to include snack foods, ready-made drinks, ginseng and loose teas. Ten Ren Tea was started by Lee Rie-ho, whose father also grew and sold tea. The family has been in business for four generations now, since Lee’s grandfather began growing tea. Under Lee, the business grew to become Taiwan’s biggest tea company with 74 stores. It also includes the Lu Yu Tea Art Center that works to preserve Taiwan’s tea culture.

In 1980, Ten Ren established it first US store in Los Angeles. Lee's brother and sister-in-law, Ray and Lily Lii, would open a San Francisco store two years later. Located in San Francisco's Chinatown, the store continues to be a strong presence. A New York City store would follow in 1984, set up by Lee's nephew and wife, Mark and Ellen Lii. Today, Ten Ren has a solid brand recognition and operates 61 stores in the United States, Canada, Japan and Malaysia.

Family buisness prospers

In its San Francisco store (http://www.tenren.com/), the bulk of Ten Ren’s early earnings were not from tea sales - as would be expected from a tea company - but rather from selling ginseng. Known throughout Asia for its health benefits, quality ginseng was being grown in Wisconsin, but very few pharmacies or health stores sold American ginseng in the early 1980s. When Ten Ren began stocking it, the store became a regular stop for tour buses carrying Singaporean, Malaysian and Chinese tourists.

With the growing popularity of bubble teas in the late 1990s, the company began to add tea stations to its stores, preparing hot and cold teas to-go. These tea stations now account for a large percentage of each store’s profits in the United States.

Still, the tea stations and traditional tea are very different businesses, according to Henry Lii, general manager of Ten Ren Tea (San Francisco). Lii learned the business from seeing his parents run the San Francisco store, and worked elsewhere before joining the family business. Customers who enjoy a particular loose tea are usually very loyal to that tea and are willing to travel long distances to purchase their favorite tea. It is a business that takes time to build up. Whereas a bubble tea might cost US$2 to US$3, traditional tea can range anywhere from US$5 to US$5,000 a pound. And, the cost often depends on how the tea is processed, according to Henry.

The flavor or scent of a traditional tea is very much a matter of personal preference, he explained, and is related to where the customer is from. While Taiwanese tea-drinkers enjoy Oolong teas, people from Beijing prefer Jasmine tea. Somebody from Hangzhou would probably drink Dragonwell (Long Ching), but if they come from Fujian, then they might select a Green, Jasmine or Iron Buddha (Tie Kuan Yin) tea.

The scenting of a quality Jasmine tea is dependent on the layers of Jasmine flowers used. The tea could be scented several times and use up to five pounds of Jasmine flowers simply to make one pound of Jasmine tea, Henry said.

“Each cousin has different recipes”

Tea is a beverage that has been around since 350 AD, and yet according to the Henry Lii, “the tea industry is still in its infancy.” He sees it as a business with great growth potential. One of the biggest factors is the research on green tea, especially over the past five years. “Lots more people are showing an interest. Tea bags used to be all people knew, but they are working on trying more,” Lii said. Ten Ren Tea also makes a range of snack foods, many of which include tea as an ingredient.

The younger generations in this family business are also making their mark. The “cousins,” as Lii calls them, have opened new stores selling Taiwanese food and tea. In Southern California, they include the 11 Tea Station restaurants (www.teastation.us) and three Cha for Tea restaurants (www.chafortea.com). Unlike Ten Ren, the majority of its business is food, not drinks. According to Lii, “Each of my cousins sort of manager an area and each one of us will have our own recipes and menus which are different from one another.”

However, to Lii it is clear that the most growth potential in the family tea business comes from Ten Fu, Ten Ren’s sister company in China. Also founded by Lee Reiho who early on recognized the vast potential of the Chinese market, Ten Fu now has 987 tea stores. Lee has also established several production facilities throughout China along with two museums. The company is currently working to open a Ten Fu Tea College in China.

Other businesses compete for American markets

Another Taiwanese business offering a refreshing treat for Americans is 85° Celsius (http://www.85cafe.com/85cafe.us/html-us/about.htm), so named because this is the perfect temperature at which to enjoy a cup of coffee. The company opened its first bakery two years ago in Irvine, California, and has been phenomenally successful. In order to be a customer at 85°C, one must have the patience to wait in the long line that normally stretches out of its front door. The bakery offers inexpensive baked goods with a Taiwanese twist.

Like other Asian bakeries, 85°C sells baked goods with taro and red bean paste fillings. But, unlike other bakeries, they also sell a wide selection of gorgeous cakes and a few products unique to their stores, such as a dark bun made from squid ink, and also sea salt coffee. You can still get a regular Tapioca Milk Tea, but also specialty drinks such as Coffee Jelly Milk Tea and drinks for more adventurous taste bud. The bakery tries to keep the price of its buns at around one dollar yet still uses top quality ingredients.

The first 85°C bakery opened in Taipei in 2004 and quickly expanded around the island. Currently there are 325 85°C cafes in Taiwan. The Irvine store served as the test store of the US market, and to help the team iron out any kinks. The bakery is already planning to open more stores, with rumors of an IPO due later this year.

If Ten Ren Tea epitomizes high quality tea, then Quickly (http://www.quicklyusa.com/) dominates the market at the other end with its tea-flavored drinks. With 2,000 locations in Asia, Africa, Europe and North America, Quickly has introduced Tapioca Milk Teas to the world in a big way. Started by Nancy Yang in Taiwan, the Quickly corporation in California has gradually expanded to include Asian-style fast food and Wi-Fi internet access. Instead of using steeped tea in their products, the drinks are usually made from powdered mixes. This allows Quickly to sell their tapioca teas at almost half the cost of other tea stations.

There can be little doubt that a taste for Taiwanese snacks in all their guises is rubbing off on today’s American foodies. Gone, thankfully, are the days when the only choice was Lipton’s hot or cold. Yet in a market where there are literally hundreds of products from hundreds of tea companies competing for the American tea dollar, Taiwan’s Ten Ren dynasty with its four generations of experience is continuing to show a drive and entrepreneurship that will give the best of them a run for their money.

Signing of trade deal with China heralds new era for Taiwan

2010-07-09T10:50:00.000-07:00

On June 29, Taiwan and China formally signed the Economic Cooperation Framework Agreement (ECFA) in Chongqing, China. Considered a prelude to other exchanges and trade across the Taiwan Strait, the ECFA has generated controversy in Taiwan since President Ma Ying-jeou first championed it. The agreement is expected to take effect in January 2011 with further rounds of negotiations still pending on investment protection, commodities trading and other regulatory issues.

The landmark agreement, the first between Taiwan and China since the division in 1949, will allow Taiwanese products to be more competitive in China. The speed of the negotiations and the strong official involvement has made the agreement unique, according to the Taipei-based China Times. After the implementation of more agreements and economic exchanges, both sides are expecting the agreement to strengthen mutual cooperation.

The United Daily News said in an editorial that the ECFA, the largest economic reform project since Taiwan joined the World Trade Organization (WTO) nine years ago, is of great significance to Taiwan’s economic development.

Taiwan benefits greatly in early harvest list

In the early harvest list of the ECFA, Taiwan has 539 items entering China with zero tariffs, worth US$13.83 billion, while China has 267 items entering Taiwan without tariffs with an estimated value of $2.86 billion. The main beneficiaries in Taiwan’s list are the petrochemical industry, machinery manufacturers, the textiles industry and the automotive components industry. The deal also covers products from some more traditional industries, in particular covering 17 vulnerable industrial products and 18 agricultural and fishing products, which the island will be allowed to export to China without needing to reciprocate. Taiwan will likely save US$1 billion in tariffs each year, which will significantly increase the appeal of Taiwanese products.

In the service arena, Taiwan has won six preferential market access conditions for its financial industries, and its banking industry will receive relatively more favorable conditions than the banks of Hong Kong. In addition, China will open up five locations where more Taiwanese investors can set up wholly Taiwanese-owned hospitals. Provisions of the deal will also make concessions to Taiwan’s aircraft repair and maintenance industry which is an important starting point from which to enter the Chinese aviation service market.

Not only will Taiwanese products be more appealing, but setting up business in Taiwan will be more attractive to Chinese companies according to Global View monthly. Polaris Investment Trust associate manager Chen Jun-ying said with the ECFA’s tariff reduction of Taiwanese products into Chinese markets, even some Chinese companies will consider moving their factories to Taiwan, given that shipping costs by sea are lower than by inland transportation from the factories in western China to coastal cities.

Taiwan: a springboard to China for multinationals

President Ma said at a press conference on July 1 that the signing of the ECFA is not only significant for Taiwan, but also important for cross-strait relations, the Asia-Pacific region and the whole world. First, the ECFA will help Taiwan break out of economic isolation and marginalization. Secondly, the deal is a major step toward mutually beneficial economic and trade cooperation across the Taiwan Strait, and can provide an institutionalized framework to create more business and employment opportunities in Taiwan. Thirdly, the ECFA is a big step to accelerate the integration of the Asian economy. The Asia-Pacific region and the international community will pay more attention to the value of Taiwan. And, more and more foreign enterprises will consider the island as a springboard to enter the Chinese market.

The president said, “Taiwan's development absolutely cannot, and will not depend on the Chinese mainland solely, and must diversify and control the risks to achieve the goal of global planning and positioning. We have the geographical advantage to attract foreign businesses to invest in Taiwan.” He added, “Taiwan can become a platform for multinational companies to invest in mainland China. Meanwhile, mainland China’s investment in Taiwan could also become a channel for it to enter the world market in the future.”

AmCham takes a fresh look at Taiwan

According to a survey by Global Views monthly, 87.5 percent of foreign enterprises in Taiwan said the ECFA will increase Taiwan’s competitiveness and 82.1 percent believe the ECFA will elevate Taiwan’s economy.

American Chamber of Commerce (AmCham) chairman Alan Eusden congratulated Taiwan on the signing of the ECFA with China. He credited the ECFA for providing a rare opportunity for businesses and research institutes to “take a fresh look” at Taiwan. While the ECFA might lessen Taiwan’s isolation in the global market, Eusden believes that the island's most serious challenge is in trying to maintain its competitiveness through pursuing trade talks with the US and other countries.

According to a report released on June 29 by the Taiwan branch of Credit Lyonnais Securities Asia, an investment and brokerage firm, most corporations do not believe that the signing of the ECFA will significantly impact profits, but the agreement will place Taiwan’s enterprises on an equal footing with those of the ASEAN countries, and as such is bound to be good for Taiwan’s economy as a whole. The report emphasized that the effects of signing the ECFA are expected to gradually become apparent after 12 months, or even have an impact on Taiwan’s 2012 presidential election.

In a speech on June 22, Japanese strategy master Kenichi Ohmae said Taipei enjoys three economic advantages that will help the island become an Asia-Pacific hub. This includes the current 370 direct flights a week across the Taiwan Strait, the drop of corporation tax to 17 percent, and now, the signing of the ECFA.

In a special article in Global Industry and Commerce monthly, Liu Zhen-tao and Li Yin-bo, professors at the Taiwan Institute of Tsinghua University (Taiwan), said that the current model of “placing orders in Taiwan – production in China – export to Europe and America” is disadvantageous to both sides of the strait because the dominant powers are controlled by Japan, the US and Europe. Hit by the global financial turmoil, both Taiwan and China have been impacted. Therefore, the division of labor should be changed to “placing orders in both Taiwan and China - cooperation in industry and R&D – and integration of domestic and overseas sales channels.” Based on this view point, the signing of the ECFA will have long-term strategic significance to promote mutually beneficial win-win cross-strait cooperation.

After Foxconn, Taiwan seeks to lure firms in China

2010-07-09T10:45:00.000-07:00

In speaking to Taiwan’s industry leaders on June 9, President Ma Ying-jeou spoke of his plan to create a special trade and economic zone on the island to attract Taiwan businesses operating in China to relocate to Taiwan. As wages in China continue to rise and its environmental controls tighten further, more business leaders are considering relocating to Taiwan as an alternative. This trend began in 2006 and has continued as businesses see a decline in their profit margins. And, by lowering business taxes, Taiwan government hopes to lure more business back to Taiwan.

In 2006, the first batch of Taiwanese businesses returned due to newly adopted industrial policies and environmental standards in China, leading the government to crack down on high-pollution, low-technology industries. This prompted a number of Taiwanese businesses to close their small-scale plants and return to Taiwan.

In 2008, the Ma administration eased trade and investment restrictions with China and promoted the first and the second listing of Taiwanese Depository Receipts (TDR), which attracted more Taiwanese businesses to return home, and boosted the local stock market. In this wave of returning businesses, some overseas Taiwanese firms have made direct investments and have taken control of failing companies in Taiwan.

Coping with the end of China’s cheap-labor era

This year, businesses have returned to Taiwan due to changes in the labor market in China and further wage rises in the country. Initially, factories experienced a shortage of labor in the coastal provinces, then, this problem spread inland. Taiwanese firms could not find sufficient manpower despite offering higher wages. Then a spate of suicides at the Taiwanese-owned I-Phone manufacturer Foxconn led the company to announce a 122 percent wage increase last month. These wage increases have heavily impacted Taiwanese firms and the Chinese labor market as a whole.

According to the Taipei-based China Times, the Beijing government has decided that its export-oriented economy shall give way to one of increasing domestic consumption following the global financial tsunami. Beijing wants Chinese citizens to be wealthy enough to generate a vibrant domestic market. Thus "wage increases" have become a key policy goal of the Chinese government. Since the beginning of 2010, all provincial and municipal governments in China have announced plans to raise the minimum wage, with increases ranging from ten percent to over 40 percent. And, this wage adjustment will continue every year from now on. It is increasingly evident that the era of China as the "world’s workshop" with an abundant supply of cheap labor is coming to an end.

Idea of “special economic zones” considered

The China Times, in an editorial, pointed out, that due to rising labor costs and labor market change in China, coupled with relaxed cross-strait relations and the opening up of direct air links, more overseas Taiwanese businesses are returning home to invest. Taiwan's government has also prepared a plan that it hopes will attract NT$40 billion (US$1.25 billion) of returning Taiwanese investment a year. This returning overseas Taiwanese investment will no doubt enhance the island’s economic structure and hopefully create a higher value-added economy that will also promote the general well-being of Taiwanese citizens. What the government wants to avoid, is Taiwan becoming a processing zone for large-scale high-pollution, low-value exports. The paper said the government should encourage the creation of pollution-free tourism, cultural and creative businesses, and financial services, as well as high value-added R&D and marketing centers, and the emerging green technology energy industry.

The United Daily News also commented in an editorial, that Taiwan has been the main supplier to the "world’s workshop," yet the island have been buried in an economic slump in recent years. Only Taiwan’s export processing businesses in China have helped maintain Taiwan’s domestic economic growth. The industrial environment in China has changed, affecting not only overseas Taiwanese businesses, but also the fundamentals of the whole Taiwanese economy, to which the government should not turn a blind eye, cautioned the paper.

Taiwan’s cabinet-level Council for Economic Planning and Development is reported to be assessing the risks and feasibility of implementing "special economic operations zones" in Taiwan. The purpose of setting up special zones is to duplicate the successful cases of export processing zones and science parks in the past, starting a third wave of economic transformation. This new generation of "economic operations zones" is intended to attract investment from returning overseas Taiwanese businesses and multinational corporations, and to reduce the high unemployment rate in Taiwan.

Taiwan works to reclaim Asian Tigers’ top spot

2010-07-09T10:40:00.000-07:00

Upon becoming the new chairwoman of Taiwan’s Council for Economic Planning and Development in May, Christina Liu, outlined the ambitious goal of reclaiming Taiwan’s former spot at the top of Asia's Four Little Tigers. In a speech, she stressed this is an achievable dream. And, according to predictions by the International Monetary Fund (IMF), Taiwan does stand a real chance of surpassing the other tigers with an economic growth rate of 6.5 percent this year, higher than that of South Korea, Singapore and Hong Kong.

South Korea outperforms Taiwan since 2004

According to an Economic Daily News report, Taiwan was the leader of the four Asian Tigers from 1980 to 1987, when Taiwan’s average annual economic growth rate and export growth rate ranged from 8.2 to 16.3 percent. However, from 2002 to 2009, Taiwan's economic performance was ranked at the bottom of the four. In 2009, Taiwan's per capita GDP was US$16,423, less than half of Singapore's US$37,293. Taiwan’s exports totaled US$2,037 million, only 56 percent of South Korea’s. Taiwan’s unemployment rate also compared unfavorably at 5.7 percent, two and a half times that of Singapore’s 2.3 percent.

Among the four Asian tigers, Taiwan and South Korea have similar industrial development patterns, both promoting the manufacturing sector, while Hong Kong and Singapore are city-state economies, with more service-oriented economies.

Before the Asian financial crisis in 1997, Taiwan surpassed South Korea in economic growth, industrial development, and living standards. However, since 1997, South Korea has outperformed Taiwan by building up super brand names like Samsung, LG and others. In 2000, South Korea’s per capita GDP was only 77 percent of Taiwan’s. The two were tied in 2004. But in 2007 the Koreans enjoyed a 26 percent higher GDP than the Taiwanese.

Other factors behind South Korea’s rise

The Commonwealth monthly reported that the relative exchange rate has contributed greatly to South Korea’s growth. In the past ten years, 80 percent of South Korea’s per capita income increase came from its exchange rate rise, while only 20 percent was the result of real economic growth. However, Taiwan's central bank has been more careful, fearing its small and medium sized enterprises could not afford similar fluctuations as experienced by the Korean Won.

Ten years ago, Taiwan’s total export volume was similar to that of South Korea. But in 2009, South Korea’s exports were 80 percent higher than Taiwan’s. South Korea also invested a higher percentage of its GDP in research and development, upgrading its brand names and increasing its exports around the world.

The Commonwealth pointed out that Taiwan's electronics exports in 2009 were 27.8 percent, higher than those of South Korea. But South Korea has diversified industries of shipbuilding, automobiles, semiconductors, wireless communications, machinery, LCD displays, steel, and petrochemicals. Its diversification strategy has lessened the country’s economic risk while maintaining a market expansion capability better than in Taiwan.

Taiwan hopes for ECFA boost

In an interview with the NOWNews network, Liu said that the signing of the Economic Cooperation Framework Agreement (ECFA) with China will give Taiwan an advantage of enjoying investment protection in China. In addition, Taiwan has reduced its business income tax to 17 percent, much lower than South Korea’s 22 percent, which will make Taiwan more attractive to international companies. This is Taiwan’s big advantage over South Korea. According to the Directorate-General of Budget, Accounting and Statistics, Taiwan’s economic growth rate for the first quarter of 2010 is forecasted to be 13.27 percent, marking the largest quarterly increase since the fourth quarter in 1978. In a recent revision, the annual growth forecast is predicted to be 6.14 percent. Liu said the ECFA will not only impact cross-strait relations, bilateral trade and tariff concessions, but will also strengthen Taiwan’s competitiveness against South Korea, especially since the investment protection agreement which Korea and China will not take effect for another two years. This is Taiwan’s advantage over South Korea, in addition to lower business income tax. According to Liu, another advantage is that the Taiwanese have a better understanding of China than the South Koreans. With all these advantages, Liu believes that international enterprises would likely align themselves with Taiwan rather than South Korea.

In the Taipei-based China Times, Huang Chih-peng, Taiwan’s director-general of the Foreign Trade Bureau under the Economics Ministry, noted that almost 20 percent of the early harvest list deals are with competitive industries from Taiwan, Japan and South Korea. With the agreement, Beijing has agreed to cut tariffs on 539 Taiwanese products entering China. This cut will likely translate into a US$13.84 billion advantage, said Huang.

NTU blushes over students working as show girls

2010-07-09T10:35:00.000-07:00

Dr. Li Si-chen, president of National Taiwan University (NTU), has expressed his disappointment over the intensive media coverage devoted to current and former female NTU students who have chosen to don skimpy clothes to promote products as so-called "show girls" or even work as pin-up girls. Having studied at the most prestigious educational institution on the island, he feels that NTU students and alumni should contribute to society with their brain power, rather than rely on their physical assets. Li thinks it is a pity that such students enjoy the nation’s best educational resources, but then go on to become show girls or TV variety show hostesses after graduation.

“President is old fashioned”

Yang Yi-mei, a 23-year-old former NTU student, is one of these girls. She got her big break after starring as the “Black Widow” in a television commercial. Her performance generated a large following of male gamers attracted by her substantial assets, sized 34G.

According to the Taipei-based China Times, Yang is proficient in both Chinese and English, and has studied in the United States. She has hosted over a hundred events, including trade shows and corporate events. With her 34G-26-35 measurements, she was dubbed one of the “NTU Thirteenth Sisters” while in school. After appearing topless in a commercial for a video game, she earned the nicknamed “Black Widow.” In May, she signed a contract with a management company that hopes to broaden her appeal by having her write a book and study Cantonese in order to enter the lucrative Hong Kong entertainment market.

In response to Li’s criticism, Yang said each student has to freely develop his or her own potential. She stressed, she knows what she is doing and is capable of making good decisions.

A student at NTU’s veterinary graduate school, Lydia, works as a program host for the ETTV channel. She also disagrees with the president’s comments. “Dr. Li is too old fashioned,” she said “Good looks are bestowed by God. Everyone should take full advantage of heaven’s gift. You need to develop professional skills to stand out in the world of entertainment. The president should not give the entertainment industry such a low grade,” she said.

Performer Pink Yang, also an NTU graduate, said one can be outstanding in any trade, and, encourages younger students who are interested in a career in entertainment to join her to learn more, especially if they have the right attitude – that of enriching oneself. With the exception of variety show host, Nancy Kou, singer and music producer, Huang Shu-chun, and actress, Bowie Tseng, there were few NTU graduates working in the industry when Yang started out in the early 2000s. Now there are a growing number of artists graduating from NTU. While the NTU alumni can look out for one another how you develop your potential is down to the individual, according to Yang.

Sex appeal won't necessarily bring self-fulfillment

In view of the current sexualization of women in Taiwan’s media, and in society in general, commentator Chan Wei-hsiung wrote in the United Daily News, that Li understands the nation’s annual investment in each NTU student does not come cheap. Each public university student receives a subsidy of up to US$6,250 per year, and as one of the most prestigious schools in Taiwan, NTU graduates should select higher level professions so they can further contribute to society. This is a logical expectation from the point of view of collective well-being.

Most of those who disagree with Li argue based on an individualized point of view, quoting the Chinese saying, “You are a hero as long as you stand out, regardless of origin of being low or high,” according to Chan. Show girls can make contributions to society and the school should respect the free development of each student. This is a pluralist claim, which opposes any priority over personal choice by an external authority, said Chan. Since the democratization of Taiwan in the 1990s, individual claims have become the mainstream of social thought.

However, Chan questions, can an opposition to collectivization really achieve personal freedom? In earlier times, nudity was a big issue. But nowadays, nudity is more commonplace, so our desires as consumers can only be peaked by the juxtaposition of nudity with a product. As an example, the pairing of a new sports car or computer with a young woman wearing next to nothing can deepen the sense of pleasure for the consumer. Chan believes Li does not understand the economic aspects of the phenomenon. Still, as the same young women scramble to defend their individual freedoms in a commercialized world now, in time they may face the consequences of their choices, said Chan.

Freedom vs. beauty?

The United Daily News points out in an editorial that young women have the right to capitalize on their bodies and their appearance as a means of making a living or even just enjoying themselves. But it is worth noting that the phenomenon reflects a gender bias that can be detrimental to women and which establishes unrealistic role models and definitions of what is beauty.

Also, in a survey by 101 Human Resources Bank cited in the China Times, on average, nine out of ten college students do work on the side while in school. In an average week they may spend 16.4 hours working and 18 hours studying. So working is also a central part of the college experience. Financially, models at trade fairs earn the highest hourly pay of NT$500 (US$15.6), compared with other jobs held by college students, so in that sense who can blame them.

Inevitably these days, any profession that promises both money and fame is bound to attract young people. However, rising stars cannot simply rely on their good looks. If marketability is linked with a model revealing her impressive cleavage or other parts of her body, the whole of society would be in trouble, and not just the values of NTU students.

Writing in the China Times, Wu Dian-rong is in total agreement with a fellow female commentator Tsao You-fang who said that a “beautiful woman’s life is determined by others, and the less pretty woman’s life is self-navigated.” Beauty is disturbing for those of us spectators who are always worried about it being squandered, resulting in a wasted life. Wu lamented that talking about people who are not pretty but who are more in control of their own fate seems “a bit like saying that the poor enjoy more freedom to wander in the park.” Such self-control and freedom probably do not comfort us, according to Tsao. Still no matter the added degree of control, most women would probably be beautiful than free, concludes Wu.

Chinese tourists are impressed with Taiwan's dynamic society

2010-07-09T10:30:00.000-07:00

In the first four months of this year, Taiwan welcomed 530,000 Chinese tourists, an almost 100 percent increase from the same period last year, according to the Commonwealth monthly. In the first quarter of the year, 340,000 Chinese tourists visited Taiwan, surpassing the number of Japanese tourists (270,000) for the first time. At this rate, there will be one Chinese visitor for every three tourists from elsewhere.

On May 4, Taiwan opened its first tourist representative office in Beijing, and three days later China followed suit by opening a tourist office in Taipei. This was the first time since the division in 1949 that Taiwan and China set up a regular tourism institution on the other side, marking a new milestone in the development of cross-strait relations.”

So far, Chinese visitors have been thrilled by Taiwan and have been keen to share their impressions of the island.

In the Want Daily, Meng Fanjia, a Chinese man with a Taiwanese wife, recalled his first impressions of visiting the Temples of Confucius in Taipei and Tainan. “It was really amazing to see two groups of elementary school students on a field trip, learning about Confucius’ teachings at the temples. The Confucian Temple in Beijing is quiet and deserted. However, the temples in Taiwan are not just tourist attractions or places to worship the ancient great teacher, but are also classrooms to pass on Confucian teachings to the next generation …there are at least two cases where I have witnessed Taiwan’s education and the passing on of traditional culture.”

According to Taiwanese tour guide Li Chien-chen, Taipei’s Presidential Office and the Chiang Kai-shek Memorial Hall are among the most popular spots for Chinese tourists. Talking to the Taipei-based China Times, he said that Chinese visitors like to have their pictures taken in front of the Presidential Office, which is just like Beijing’s Zhongnanhai – headquarters of China’s leaders. Li often joked with his clients that “President Ma Ying-jeou is working in the fifth floor. Do you see him waving at you? I called him just now, but he is busy and can’t meet you in person.”

Another observation in the Want Daily was by Zeng Qiqi, a woman from Zhejiang province, China, who said, “in Taiwan, I hear them talking in standard Mandarin. There is no communication problem even in remote areas. Our 60-year-old driver, who is originally from Guangdong province, speaks without any Cantonese accent. After all, there have been decades of separation across the Taiwan Strait. However, even speaking the same language, the people of China and Taiwan use different expressions for modern objects like laser, rapid mass transit, lunch box, information technology, digital camera, and mobile phones, etc.”

In the same paper Chinese tourist Tang Jin said that “the Taiwanese have a better quality education and are civilized. They talk quietly, even in public places such as in stations and restaurants, while the Chinese always talk loudly and shout at each other.”

According to Taiwan's Bureau of Tourism, more than 1.2 million Chinese tourists have visited the island since 2009. Many of them grew up hearing about Taiwan, so the visit allows them to finally see Taiwan for themselves. This was the case for an elderly woman in a wheelchair. She came from Beijing so she could see Sun Moon Lake and Mountain Ali, which she had studied in elementary school. She could even sing the Taiwanese popular folk song “The Girl from Mount Ali.”

Zhang Yuping, originally from Sichuan province, China, has a Taiwanese husband. The couple has a one-year-old son. In speaking to NOWNews, she said that the Taiwan television soap dramas are more appealing. She watches them daily and finds the style of programming very different on the two sides of the Taiwan Strait. The Chinese programs are more conservative with many restrictions, while those in Taiwan are more diverse and lively. This is true for political talk shows too, which are open and bold, very different from those in China, Zhang said.

Gao Xingjian, the first Chinese person to win a Nobel laureate, told the Central News Agency that each time he visits Taiwan, he sees something new. Although he now lives in France, Gao considers Taiwan to be a treasure in the Chinese world, something dynamic and rare.

Maternity benefits may be extended to single moms

2010-07-09T10:25:00.000-07:00

With the vast majority of Taiwanese preferring to remain single in their 20s, the island’s marriage rate has hit a 40-year low. This is problematic given an increasingly gray population coupled with the low birth rate. If this situation continues, more people will be drawing from the system than are paying into it, hampering not only social services, but economic development as well. A solution suggested by Vice Interior Minister Chien Tai-lang, would entitle single moms to maternity benefits as an incentive to increase Taiwan’s birth rate. The suggestion was met with staunch opposition from the island’s media.

According to the Taipei-based China Times, the number of single mothers has more than tripled, from 1.4 percent to 4.39 percent annually over the last 30 years. More women are having children outside marriage said Chian Chih-chie, deputy secretary-general of the Women’s Awakening Foundation, and the government could solve the problem of low birth rates by granting more social welfare maternity benefits to single mothers who are currently not covered. This would not only be fair, but would also serve as an added incentive, she said.

Not only are less people getting married, but they are getting married later. In a recent study announced on June 27, the Interior Ministry found that the average age of marriage in Taiwan in 2009 was 31.6 years old for men and 28.9 for women, an increase of half a year compared with the 2008 averages.

The decline in the number of people getting married can also be attributed to the economic recession, higher unemployment and the fact that last year happened to be a traditional Taiwanese “lonely phoenix year,” which is said to be a bad year to get married.

In a survey conducted by the China Times, only about 60 percent of respondents were married and as high as 40 percent were not. An in-depth statistical analysis also showed that 90 percent of men between the ages of 20 and 29 were not married, and as many as 71 percent of women in the same age group were unmarried. This is troubling since the 20s are the best age for conceiving children.

Remaining single or marrying later in life is also becoming more acceptable, according to the Central News Agency. Professor Wang Yun-tung of the Department of Social Work at National Taiwan University said that traditional values dictated that women had to be married by a certain age. But, as society has changed, so have its values. Wang believes that Taiwan is a diversified society, and with the rise of individualism, young Taiwanese do not feel the pressure to get married. Couples living together without the benefit of marriage are no longer stigmatized as before. Marriage is not indispensable, so more people wait to get married or remain unmarried.

Yao Shu-wen, chief executive of the Modern Women's Foundation, believes that there are other reasons that less people got married in 2009, outside of it being a “lonely phoenix year.” Contributing factors include the high divorce rate and a lack of belief in the institution of marriage, said Yao. And, women who have worked hard in their careers are reluctant to marry later for fear of losing their independence.

The United Daily News reported that when making the remarks about single mothers, Chien also pointed out that children born outside of marriage should enjoy the full benefits of legitimacy. In France, social workers visit the homes of girls of child bearing age. As soon as they become pregnant, young women in France are entitled to government subsidies regardless of their marital status. After children are born in Taiwan, the government should extend more help and allowances to help reverse Taiwan’s low birth rate.

Exhibition of Taiwanese poster art utilizing indigenous motifs, UC Berkeley until Aug. 16

2010-07-08T17:31:00.000-07:00

The Institute of East Asian Studies at the University of California (Berkeley) will be exhibiting “Taiwanese Poster Design: An Engagement with Indigenous Arts” at its conference room on the 6th Floor (2223 Fulton Street, Berkeley, California) until August 16, 2010. The selection of award-winning posters were created by Taiwanese artists by incorporating aboriginal myths, motifs, and the contrasting pull of traditional and modern life.

The exhibition is on loan from Taipei’s Shung Ye Museum of Formosan Aborigines and is co-sponsored by UC Berkeley’s Center for Chinese Studies, and Taiwan’s Ministry of Foreign Affairs and Council for Cultural Affairs.

The exhibition is open weekdays from 9 AM to 5 PM and is free of charge.

Taipei’s Metro

2010-06-10T12:45:00.000-07:00

With the second highest population density in the world after Bangladesh, Taipei’s Rapid Transit System (TRTS) is up to the challenge of transporting the city’s 2.6-million residents.

Designed by three American firms in 1985, construction of the TRTS began in 1988 with the engineering and the electric subway cars manufactured by European, Canadian and Japanese contractors. The first routes began operations in 1996, instantly relieving Taipei residents of overcrowded streets and buses. The expansion of the system into the suburbs has delivered a better quality of life for all residents in Taipei.

The system has five principal color-coded lines and 80 stations, and stretches for 191.3 kilometers (119 miles). As with the Bay Area Rapid Transportation (BART) system, ticket prices on Taipei’s metro are determined by the distance traveled, with prices ranging from NT$20 (US$0.63) to NT$65 (US$2.00). Passengers with bicycles are charged an additional NT$80 (US$2.50) each.

Frequently scheduled trains, together with the orderly behavior of passengers has enabled the system to convey roughly 2.16 million passengers to their destinations each day. The system has consistently received high satisfaction scores, as high as 95 percent, according to a recent survey.

Foxconn suicides reveal inconvenient truths

2010-06-10T12:40:00.000-07:00

On June 1, Foxconn, the world’s largest contract electronics manufacturer and maker of the iPhone, iPod and iPad, announced a comprehensive 30 percent wage increase for all its production-line workers in China. This bold announcement was followed by another six days later, that the minimum wage at its factory in Longhua, Shenzhen, would more than double from RMB900 (US$132) to RMB2,000 (US$293) starting in October. The company’s actions have sent shockwaves through the foreign investor community in China, according to the Commercial Times. The company has been making news for another reason recently, the alarmingly high number of employee suicides at its Shenzhen campus.

Foxconn, which falls under the umbrella of the Hon Hai Precision Industry Group, is headquartered in Taipei, Taiwan. After the 11th employee suicide at its 300,000-worker Longhua site, Terry Gou, the chairman of Hon Hai, invited over two hundred local and foreign journalists to inspect the facility. This initiative proved effective as the journalists could find little to criticize at the plant. Yet, the very night that Gou returned to Taiwan, the 12th suicide took place prompting him to fly back to Shenzhen immediately.

Gou: “I carry 12 crosses on my back”

At the annual shareholders’ meeting on June 7, Gou said he has ceased the practice of paying the high death benefits, which might be considered by some as an inducement to commit suicide. Foxconn previously paid out almost ten times its employees’ annual wages in death benefits, reported the United Daily News. Gou also stressed, “I carry 12 crosses on my back” and said he takes full responsibility for any management flaws.

In reference to an investigative report by Taiwan’s Suicide Prevention Association, Gou said three of the 12 workers attempting suicide had previous mental disorders, and their actions were in no way related to the work environment or to work pressure. The Foxconn management has been shocked that half of the suicide attempts occurred in quick succession in May, a fact that may be attributed to the so-called “Werther Effect” of copy-cat suicides. After Gou flew to Shenzhen to take personal command of the factory, dozens of suicides were apparently prevented, according to the United Daily News.

Not a “sweatshop,” only a “pressure cooker”

The Taiwanese media has written widely about Foxconn’s management style and Gou’s personality in particular. Yang Ren-kai, a veteran journalist who used to work at Hon Hai said, if Foxconn is a "sweatshop," Chinese journalists who have snuck into the factory by hiding their identity would have broken the story.

Yang wrote in the Journalist magazine that “Terry Gou is downright masochistic…Gou is the axis of Hon Hai, with all the people revolving around him… Gou is an absolute workaholic. He gets up usually around 7 a.m. and enters his office around 8 a.m., he is busy all day, until around 1 or 2 a.m. before returning home… Gou knows of course how to rally his subordinates; however, he has a superior sense of self-motivation. He started Hon Hai from scratch, and has long been fighting to keep his business afloat during hard times. This is all part of his survival instinct.”

Xin Huai-nan, a former senior executive at Hon Hai, said in an interview with the Hong Kong-based Sing Tao Daily that “Gou does not run a sweatshop, and Foxconn is not a “sweatshop,” but it might be a “pressure cooker.” “Hon Hai's culture dictates that it must be superior to its competitors. There are three elements that are crucial – the company must produce better products, with shorter lead times and at a lower cost.” Gou asks his staff to achieve all three. That is why Foxconn is like a “pressure cooker.”

Originally established in Taipei in 1974, Foxconn has held the top spot for a Chinese exporting enterprise according to Fortune magazine’s Global 500 for the last seven years. It employs in excess of 800,000 people in China. The entire employee population at its Longhua complex, including 3,700 Taiwanese workers, is greater than the population of one medium-sized city in Taiwan.

Managing that many employees is not easy and requires strict control, according to David Sun, co-founder of the flash memory maker Kingston Technology, speaking in an interview with the United Daily News. “It is not easy to run a factory, let alone to manage hundreds of thousands of employees, he said. Ray Chen, general manager of Compal Electronics, stressed, “I hope Foxconn can properly deal with this crisis as soon as possible. Otherwise this could lead to a chain of events affecting other Taiwanese and foreign enterprises in China.” In their view, this is not just a Foxconn issue, but is symptomatic of the changing economic and social environment in China.

Is rigid management a necessary evil?

The United Daily News said, China has been playing the role of “manufacturing base” in the global supply chain for almost three decades now. Many Taiwanese people have moved to China to set up operations to create large contract manufacturing businesses. They impose strict discipline when managing tens of thousands of employees to achieve fast delivery and quality production for global brand leaders. As well as the in-demand iPhones, iPods, and ipads, the latest computer models for HP and Dell are also made at Longhua. Even Acer Computer depends on these manufacturers to make its notebook computers in a bid to increase their global market share.

How to manage such a huge group of low-paid workers and achieve maximum performance in a short space of time has proved problematic for foreign businesses in China, but it works to the advantage of the Taiwanese firms. However, the Foxconn suicides are showing that even Taiwan businesses are powerless. Gou lamented, “What can I do except to apologize? I have done my best to seek advice from psychologists, feng-shui masters, Buddhist monks and the media, even announcing a 30 percent pay rise.”

Gou is not without his supporters though. Reporter Wang Zhong-fang wrote in her blog, “The recent criticism by the local media of Foxconn’s management style seems correct on the surface but not altogether correct. Those who have not worked in China do not really understand the situation there. Implementing a strict system is a “necessary evil.” Without such a system or discipline, the management of tens of thousands of workers would descend into chaos, with no production at all…” Wang also compared Chinese workers to their Taiwanese counterparts working in clean rooms at science parks in Taiwan. Asking why don’t they commit suicide? In either case, if these employees dislike their jobs, they can always quit, she wrote.

Generation Y factor

The labor conditions at Foxconn, at least on a physical level, are far better than the requirements stipulated in China’s official regulations, and certainly do not qualify as being a sweatshop. However, other factors could contribute to the high suicide rate; chief among these is the low regard given to the formation of personal relationships, which is reflected in the institutionalized management style. Additionally, most of the workers are young and away from their families and hometowns for the first time, so they might be emotionally vulnerable as well.

Most of today’s Taiwanese business leaders, including Terry Gou, were born into the first wave of baby boomers in the post-war period and grew up in poverty. In order to improve their lives and those of their families, they worked extremely hard to succeed. China is entering a stage where the generations born in the 1980s and 1990s are starting to work, noted the Commercial Times. The thinking of this generation is very different from those of their parents. The tried and tested Taiwanese business management models do not necessarily apply to this generation.

In speaking to the Taipei-based China Times, a senior manager at Foxconn said that young employees come to work with unrealistically high expectations. Whether they are pampered children from a one-child household, or hard workers away from their hometown and family for the first time, they are frustrated when reality does not meet their expectations.

Alienation and a lack of social mobility

The United Daily News also pointed out that China has learned from Taiwan’s experience to become the world’s workshop with an export-oriented economy, but the economic take-off in Taiwan in the 1970s differs from the current one in China. In Taiwan initially there were gaps between the cities and the countryside, but it was not as extreme as in China. In the early 1970s, Taiwanese workers in export processing zones went home at night, so their work pressure had an outlet for release and this allowed for the continuation of a normal family life. The Chinese workers, however, migrate to the cities from all over the country. There is no easy outlet for them to let off steam and forget about the pressures of work and life.

Furthermore, Taiwanese workers enjoyed equal educational opportunities, and social mobility is a real possibility. As long as they work hard, they have the opportunity to start their own business or succeed doing other things. While in China, the migrant workers are unable to register their households in the cities that they move to. The younger generations are excluded from equal educational opportunities. They feel hopeless because it is difficult for them to rise out of poverty regardless of how hard they work.

Preparing for the manufacturing shift

The reality is that the issues raised by the Foxconn suicide incidents signal a fundamental structural problem in China’s economic development pattern.

According to the Taiwan Electrical and Electronic Manufacturers’ Association chairman Arthur Yu-cheng Chiao, speaking in an interview with the United Daily News, Foxconn’s wage rise will mean higher production costs in China over the next three to five years and Taiwanese electronics manufacturers will be forced to leave. When this happens, the association will help them move to India, Indonesia, Vietnam and other countries, he said. Taiwanese manufacturers must expand their industrial scope and invest in new industries. Those firms that stay in China will have to enhance production automation.

Taiwan’s Economic Minister is already preparing for this critical moment in China’s transformation. In an interview with the Central News Agency on June 8, Minister Shih Yen-hsiang said the government will encourage Taiwanese businessmen to return to Taiwan to invest, and to help Taiwanese entrepreneurs transfer their investments to South East Asia, especially Indonesia. The government is urging investors to make technology-intensive manufacturing process in automated factory in Taiwan and move labor-intensive industries in Southeast Asia. The tragic Foxconn deaths serve as a stark early warning to Taiwan's government and businesses to be ready to face these inconvenient truths.

Former top advisor assesses the first two years of Ma's administration

2010-06-10T12:35:00.000-07:00

On May 28, Dr. Su Chi, the former secretary-general of Taiwan’s National Security Council was the guest speaker at a luncheon discussion at the Center on Democracy, Development, and the Rule of Law (CDDRL) at Stanford University. The event was part of a larger seminar on “Trends in the Strategic Triangle: US-China-Taiwan Relations in the Coming Decade.” The informal luncheon was hosted by Professor Larry Diamond, director of CDDRL and was on the topic “Assessing the first two years of the Ma Ying-jeou Presidency: A Conversation with Dr. Su Chi.”

Key problems facing the Ma administration

Su began by listing the problems that have dogged the Ma administration since assuming office in May 2008. “Economically, we were hit by the tsunami, the worst since 1929. We were surprised and ill prepared… Then in September 2008, the US economy had a heart attack. We were able to save Taiwan’s banking sector, but could not save our export sector,” he said. This in turn cast doubts on President Ma and his ability to turn things around.

Politically, public trust in government and democracy was at an all-time low. Former President Chen Shui-bian was convicted of embezzling official funds and was detained in jail. The Taiwanese people used to celebrate their democracy, but by the end of 2008, it was hard to celebrate. The opposition party also played a part in manipulating Taiwanese fear of China, according to Su.

In dealing with these issues, the Ma administration has focused on instilling trust, both internal and external, noted Su. Many Taiwanese people felt that the government had betrayed them and it was incumbent on the government to rebuild that trust within the country. Externally, Taiwan also needed to build a good relationship with the US and to prove itself trustworthy again, he said.

Rebuilding trust with the US

Taipei did not want to put the US in the position of again having to mediate between the two sides across the Taiwan Strait, where Washington needed to tell China “I love you” and then reassure Taiwan, but “I love you too,” said Su.

Much to the amusement of the audience, Professor Tom Christensen of Princeton University interjected that the State Department likely did not use “love”, maybe “like.”

Now Taipei is able to communicate directly with Beijing, sparing Washington the need to be the go-between. Since Ma took office, Taiwan’s international standing has improved, stressed Su.

Also, in the early days of the administration, Ma’s government strived not to make promises it could not keep. Ma himself was “surprise-free and low key,” said Su. This meant no hanky-panky, but being predictable where the administrations would consult each other fully. The Ma administration has also not rushed to claim victory at every round, said Su.

Professor Diamond noted the similarities between President Obama and President Ma. The former is noted for being “No Drama Obama,” while the latter is “surprise-free and low key.”

Focus on pragmatism

The Ma administration has focused on pragmatism, according to Su, approaching issues in a pragmatic fashion and not from an ideological standpoint. If it could be done, it would be done. It has not been a matter of what should be done. If it couldn’t be done, then it wasn’t attempted, said Su. As an example, a direct flight to Shanghai took 80 minutes. It made sense to allow direct flights between the two countries, but not direct flights to Taichung since it would be across Taiwan’s central line and not defense savvy, he said.

Pragmatically, the Ma administration sees Taiwan in geographic terms and in terms of US, China and Japan, said Su. Taiwan may represent only 1 percent of the world’s GDP (US - 25%, China - 7% and Japan - 7%), but nobody else is as close to the top three. Besides, Su joked, “we speak better Chinese and Japanese than the Koreans.”

“We have gone from being enemies to being good neighbors with China,” said Su. Eventually, maybe the two countries can be good friends, but Beijing has to show Taipei that they are trustworthy also, he said.

If the FTA-like Economic Cooperation Framework Agreement (ECFA) is signed between Taiwan and China, then fear of China will decrease and economic relations across the Taiwan Strait will be closer. However, people should not expect things to get easier as Taiwan and China become more integrated economically, said Su. The ECFA is shaping up and that by itself is getting more difficult, because both parties are now talking about specifics and fighting to gain ground on the early harvest list. It is the nature of things, Su concluded.

Young Taiwanese scientists lead the way

2010-06-10T12:33:00.000-07:00

This year, seven Taiwanese high school students took home prizes from the Intel International Science and Engineering Fair (Intel ISEF) held in San Jose, California. In total, an impressive 87.5 percent of Taiwan’s entries won prizes, the highest percentage of any participating country.

Intel ISEF is the world’s largest science fair competition with over 50 countries participating this year. This May, over 1,700 pre-college students competed in 17 categories. The first prize in chemistry went to Jacqueline Hung and Lin Chi-chieh from the Taipei Municipal First Girls’ Senior High School for their experiments with iron selenide and its electrical superconductive properties at minus 273 degrees Celsius without suffering any energy loss.

Also in May, a group of young Taiwanese students competed in Malaysia at the 2010 International Invention, Innovation and Technology Exhibition (ITEX). Organized by the Malaysian Invention and Design Society, the exhibition concluded with Taiwan again outperforming other countries. With the theme of “Green Innovation,” the ITEX had 680 entries from eight countries on display at the Kuala Lumpur Convention Center. Taiwan’s 88 participants were made up of university and high school students, as well as individual inventors. Out of the 47 entries, Taiwan took home 18 gold, 22 sliver, 4 bronze and three special awards.

The results of both international competitions are very encouraging for Taiwan as it seeks to be an innovation leader as well as a hi-tech manufacturing center.

Can US learn from Taiwan’s health insurance system?

2010-06-10T12:26:00.000-07:00

On May 15, the Silicon Valley Taiwanese American Industrial Technology Association (TAITA-SV) held its annual conference in San Jose, California. The association chose to focus this year’s theme on “Health Care Reform – Changes and Opportunities” by inviting speakers knowledgeable about health care reforms in Taiwan and the United States. Dr. Yeh Ching-chuan, the founding CEO of the Bureau of National Health Insurance (NHI), Taiwan’s universal health care system, noted that Taiwan spends one seventh of what the US spends on health care but with the same or better results.

Founded in 1995, the NHI is about to undergo a second-generation of reforms to combat rising costs. The new system will be in place by 2012 and will alter the premium structure currently in place. Before NHI, nine million of Taiwan’s twenty-two million residents were uninsured. Now, 99 percent of the population is insured. The program has consistently earned high satisfaction ratings, ranging from 60 to 80 percent during the last 15 years. It has helped to increase Taiwan’s life expectancy by four years and improved the health of Taiwan’s less fortunate.

Taiwan’s single-payer system is run by the government with mandatory enrollment. The premiums come from employers and the government, with the user also paying a share. The single payer system fosters social equity by protecting low income groups. Moreover, by pooling general administrative costs it also substantially reduces tax costs. As an example, if the US health care administration could be as efficient as Taiwan’s the US would save US$110 billion and cover the 50 million Americans currently without health insurance.

According to Yeh, the virtue of the US system lies in its research and development, which is two to five years ahead of Taiwan’s. This has enabled the US to more quickly adopt new drugs and technology. The US also has excellent medical education. Even so, health care should be an universal right and not a luxury. Taiwan’s system offers uniform benefits and equal access, but also reduces costs and improves efficiency, for instance by using a single database, containing costs and providing a higher level of quality control.

In conclusion, Yeh said the US system is marked by “inefficient insurance,” whereas Canada’s system is marked by “inefficient delivery.” Taiwan’s system is a matter of “inefficient government,” but out of the three, he considers it the better alternative.

Taiwan condemns Pyongyang

2010-06-10T11:59:00.000-07:00

In an interview with the Doha, Qatar,-based Al-Jazeera TV network on May 28, President Ma Ying-jeou condemned North Korea’s breach of peace and its use of violence in the Cheonan Incident. President Ma also urged the international community to take joint measures in order to maintain peace and stability in the region. Tensions on the Korean Peninsula have escalated since May 20, when Seoul accused Pyongyang of torpedoing one of its naval patrol ships in March and killing 46 crewmen.

On May 29, President Ma condemned North Korea and supported the joint efforts of the Republic of Korea, the United States, Japan and other countries in seeking to reduce tensions through the United Nations. And, Taiwan is concerned that the use of violence or any provocation will undermine regional peace.

At another occasion that day, President Ma said the Korean Peninsula and the Taiwan Strait were once considered the two dangerous flash points in the region. With significantly improved relations between Taiwan and China, few would consider this area as a tipping point now. However, the Korean Peninsula is still perilous, said President Ma.

As a precaution, Foreign Minister Timothy Chin-tien Yang is ready to evacuate the 30,000 overseas Taiwanese in South Korea if tensions explode between the Koreas. As a contingency measure, a C-130 Air Force transport plane is on standby just in case evacuation is needed said the Ministry of Defense. During the riots by the Red Shirts in Thailand, a C-130 plane was also ready for any evacuation missions.

In addressing what possible impact the crisis on the Korean Peninsula might have on Taiwan, Christina Liu, the new chair of the cabinet-level Council of Economic Planning and Development, told the Legislative Yuan that it would cause “more harm than good.” With very similar industries in common, if South Korea were to be embroiled in a war, international companies would likely turn to Taiwanese manufacturers to fulfill orders instead. As for the negative impact, Liu said, no matter which Asian country has a problem, international capital would withdraw from the region completely. The recent drops of both the stock markets and foreign exchange in Taiwan reflect this dual trend. Also, in today’s economic structure, it is much quicker to shut off capital flows and switch orders.

According to Chen Tian-yj, an economics professor at National Taiwan University, increased tensions on the Korean Peninsula would bring absolutely no benefits to Taiwan. In a world of globalization, we are all closely connected, he said. Instability in any region would impact international trade, especially since South Korea is a large economy and Taiwan is an important trading partner.

Chen is also skeptical about companies switching orders from Korea to Taiwan. He said once war breaks out between the two Koreas, international capital would flee to safer areas. Unless absolutely necessary, orders withdrawn from Korea would not come to Taiwan. Once a war breaks out, not matter who wins, no one will benefit, he said.

Liang Kuo-yuan, president of the Polaris Research Institute in Taipei, said with the global economy still not fully recovered, any uncertainty would simply “rub salt into the wounds.” With the continued debt crisis in Greece and the tensions on the Korean Peninsula, he expects the global stock markets to continue to reflect these tumultuous times.

Taiwan ranked world’s 8th most competitive economy

2010-06-10T11:57:00.000-07:00

Based on a newly released forecast from the International Monetary Fund (IMF), Taiwan’s economic growth rate is ranked No. 1 among the four Asian Tigers in 2010, and is expected to remain at the top from 2013 to 2015. According to Christina Liu, the new chairperson of the cabinet-level Council for Economic Planning and Development, Taiwan will continue to be at the top of the pack by embracing an open market policy.

The IMF predicted in April that Taiwan’s economic growth rate would be 6.5 percent, topping the other three economies, Hong Kong, Singapore and South Korea. Although Taiwan used to lead in growth, it has not done so over the past few years. After the global financial tsunami, the world economic order has witnessed a reshuffle so that the island is again outperforming its rivals.

Taiwan’s GDP for the first quarter of 2010 reached over 10 percent, the highest single quarterly figure in 20 years. The director-general of Budget, Accounting and Statistics also said that the GDP forecast will be revised from 4.72 to 5.3 percent.

Many other organizations have upgraded Taiwan’s GDP forecast, including Global Insight, a leading economic and financial intelligence publication, which has upped its February forecast from 5 percent to 5.3 percent.

The United Daily News reported government officials as saying that all indicators of production, export, expenditure and investment show a better forecast than the numbers released in February. First quarter exports reached US$92.17 billion, about 50 percent higher than the same period in 2009. The index of first quarter industrial production rose to 47.12 percent, the highest recorded for a single quarter.

There were 435 cases of overseas investment approved in Taiwan during the first quarter, almost a 26 percentage point jump from the same period in 2009. The total amount of overseas investment was US$1.6 billion, 50 percent higher than the same period in 2009.

In addition to economic growth, Liu noted that Taiwan has worked hard to increase employment, solve its structural unemployment, stabilize commodity prices, and balance income distribution. This has reflected positively in Taiwan’s competitiveness ranking as well.

Taiwan is now the eighth most competitive economy in the world according to the 2010 World Competitiveness Yearbook published by the Swiss-based Institute for Management Development (IMD). This is a huge jump from its 2009 standing of 23rd place. Rising corporate competitiveness and government efficiency have contributed to the island’s ascent. Currently, Singapore is ranked first, followed by Hong Kong and the US, which placed first in 2009.

Regarding Taiwan’s competitiveness ranking, Suzanne Rosselet, Deputy Director of the World Competitiveness Center at IMD, told the Central News Agency that it is really incredible to see Taiwan jump from 23rd to 8th. This shows Taiwan has a high degree of confidence in economic development. Also, based on the “first in first out” theory - meaning the first to enter the crisis should also be the first to exit - Rosselet suspects Taiwan will lead East Asia out of the woods.

After the recession of 2008, Taiwan’s recovery has benefited from China's continued rapid growth, which has helped boost Taiwan’s competitiveness ranking. According to Rosselet’s analysis, the Economic Cooperation Framework Agreement (ECFA) between Taiwan and China will further improve overall economic prospects.

New tax cut to create social injustice or to upgrade economy?

2010-06-10T11:56:00.000-07:00

Under Taiwan’s newest law, the “Industrial Innovation Act,” business income taxes will be cut from 25 to 17 percent. On April 30, the amendment passed its third round of reading in the Legislative Yuan. It is estimated that the tax cut will cause total government income to fall by up to NT$34.3 billion (US$1.07 billion), reported the United Daily News.

But in the mid-to long-range, the promotion of economic industrial development, and the expansion of the tax base, will increase the tax income according to the ruling Kuomintang (KMT) legislative caucus. Under their estimates, the tax cut will create government revenues of NT$69 billion (US$2.15 billion).

Island of inequality?

However, in a recent Commonwealth monthly article, the projections were less rosy. A recent cover story, “Taiwan to become island of inequality?” criticized the new tax cuts. “The salaries and wages earned by Taiwan's 9 million workers account for 72 percent of the reported income on which individual income taxes are paid in Taiwan, a far higher ratio than the 56 percent in the United States and the 49 percent average across wealthy Organization of Economic Cooperation and Development (OECD) countries. In Taiwan, there are 7.54 million households, but only 5.38 million, or 71.3 percent, pay taxes.”

“The taxes that many people pay are totally disproportionate to their incomes,” says economist Ma Kai. “Many households' accumulated wealth relies on gains from property and stock transactions, the vast majority of which go untaxed.”

According to the 2009 World Competitiveness Yearbook put out by the Institute for Management Development (IMD), corporate income taxes paid by Taiwan's enterprises account for only 3 percent of the GDP, lower than the ratio in the other Asian Tigers (South Korea, Singapore and Hong Kong), China, Japan and the United States. Reported corporate pre-tax earnings, which account for only 18 percent of all taxable income reported in Taiwan, amount to barely 20 percent of the business income listed in Taiwan's national income statistics.

In Taiwan, the more a company earns, the lower its tax burden. Commonwealth found in looking at the 2009 financial statements of publicly listed companies, the 10 companies that made the most money only paid an average marginal income tax rate of 9.97 percent. The magazine's survey clearly indicates that the unfairness of the tax system is one of the greatest sources of public anger.

Asked about the government's policy to lower the corporate tax rate from 25 to 17 percent, 43 percent of respondents believed it was unfair, while 70 percent felt that the tax reforms of the past two years have been increasingly favorable to businesses and wealthy households.

Big tax cut to create GDP increase

Since coming to power in 2008, the Ma Administration has rolled out a number of tax breaks for companies and the wealthy. This new business income tax cut package became the biggest tax cut measure in Taiwan’s history. It was passed at a time when the country's finances are in their worst shape in eight years.

However, high taxes will scare away money, said Huang Yo-hui, associate professor of the National Taipei College of Business. As an island economy, Taiwan can’t afford to impose high taxes. The tax cut is an adjustment in the right direction over the long term because it will promote international competitiveness, attract foreign investment, and encourage a return of overseas Taiwanese businessmen. Ultimately, it will cultivate more tax resources.

According to the estimate of the Ministry of Economic Affairs, Taiwan’s business income tax rate is lower than that of China (25%) and South Korea (22%), similar to that of Singapore (17%) and Hong Kong (16.5%). With the new cuts, Taiwan will create an environment of fairness, efficiency, simplification and international competitiveness, thus reducing the tax cost of businesses.

Based on the experience of American tax cuts where every dollar cut in tax creates a GDP increase of US$1.5 to US$2.5, Taiwan’s business income tax cut will create a total of NT$69 billion (US$2.15 billion) GDP.

Wang Jiann-chyuan, vice president of the Chung-Hua Institution of Economic Research, said the upgrade to research and development will be a big incentive for businesses in the mid- to down-stream of the supply chain. For example, the NT$30 billion (US$930 million) R&D investment government spent in 2008 brought in NT$500 billion (US$15.62 billion) from private business towards the GDP. Wang added “This is key to the national transformation, and the upgrade of R&D in the service sector will be the lifeline to future employment for young people.”

What’s next?

It is also the right time for government to revitalize the green tax system, said Commonwealth. Tax cuts at the start will be followed by tax increases later. Huang Yo-hui cited an example of the green tax, which is a consumption tax taking advantage of the resources of society. Once you use it, you have to pay taxes, especially for the businesses that consume the most energy. After enjoying the tax cut benefits, it is necessary for the business to pay more tax later.

The United Daily News said it is predictable that the rich will pay less tax because business income taxes are down and the government’s revenue will soon be greatly reduced. But the government should monitor how businesses spend the funds due to the decline of corporate tax. If companies pay less tax and spend the reserved money on research and innovation, human capital and increased employment, it would be the best starting point to create a win-win situation for government, business and the population as a whole.

On the other hand, the side effects of the decline in business taxes must also be guarded against, said the paper. With more retained earnings, the company holds a lot of cash in hand, resulting in the pressure of how to use the funds. Due to the expansion of capital, companies will face the pressure of breaking the bottleneck of business profit. These two pressures may lead enterprises to repeat the mistakes of diversified merger and acquisition (M&A) a common phenomenon in the United States in the 80’s and 90’s, causing companies to lose focus on business operations, and creating the M&A bubble.

Over the past decades, Taiwan has used tax cuts as an incentive to encourage business investment; but times have changed, said the paper. Society is moving faster, with issues of high unemployment, low birth rates and so on. The government has to establish a stable system of social welfare and economic security, which is an integral part of the investment environment. It is not enough just to have a tax cut.

Made-in-Taiwan uniforms to kick off World Cup

2010-06-10T11:55:00.000-07:00

As the quadrennial FIFA World Cup tournament kicks off in South Africa tomorrow, Taiwan will be appearing not among the 32 contending teams, but as a maker of their uniforms. Nine of the competing teams will be donning uniforms made of recycled materials completely made-in-Taiwan (MIT). So even without a national soccer team playing, Taiwan’s textile-technology will still be present to flex its muscles on the fields.

Over 13 million polyethylene terephthalate (PET) bottles were used to produce the 2010 World Cup jerseys for the teams and retailers. On average, eight plastic bottles can be recycled into one jersey. Not only are they environmentally green, it weighs 13 percent less than traditionally shirts. Each one is fashioned from 144-thread-count fibers, which helps keep the players drier by allowing sweat to evaporate quicker. This not only shows Taiwan’s technological superiority, but also demonstrates the island’s advances in “green” products.

According to the Taiwan Textile Research Institute (TTRI), PET bottles are reprocessed and extruded into polyester fiber, which in turn are turned into fabric for the shirts. Dyeing techniques are also crucial as coloring standards for FIFA soccer jerseys are quite strict. The jerseys were dyed in an environmentally friendly fashion in keeping with the Global Green Standards. In this regard, the jersey’s high quality reflects Taiwan’s leading technology and cost-effective production.

After years of vigorous efforts by the TTRI in research and development, Taiwan’s continued innovations has made steady breakthroughs in dyeing and textile-fiber-production technology. As such, Taiwanese textiles have become a favorite choice of renowned international sports brands. According to the TTRI, nine national teams (Brazil, The Netherlands, Portugal, United States, South Korea, Australia, New Zealand, Serbia and Slovakia) will be wearing uniforms made by Taiwanese manufacturers.

The jerseys, cut to fit the world’s best soccer players, will provide unmatched airflow and pliability. It speaks to Taiwan’s outstanding achievements in textile-manufacturing technology and serves as a testament to the island’s commitment to protecting the environment, conserving energy and reducing carbon emissions.

Artists battle scientists, government over fragile wetland

2010-06-10T11:40:00.000-07:00

In a show of force, prominent members of Taiwan's literary and artistic circles banded together with well-known writer Chang Hsiao-feng in opposing the government's plan for a 25-hectare block (62 acres) of land in Taipei City. The army depot known as “202 Arsenal” is slated to become the National Biotechnology Park (NBP). The government allotted the land to Academia Sinica in 2007 and construction at the park was scheduled to begin on June 1.

Preserving the city’s last piece of green land

In the United Daily News, Chang, a writer and former professor of Chinese Literature at Soochow University in Taipei, has urged President Ma Ying-jeou to abandon the project and to preserve the “last piece of green land” in the city. President Ma took Chang’s supplication seriously and inspected the allotted land on May 10. Along with other government officials, Ma decided that it was not wetland as Chang and other environmentalists had claimed.

Instead, President Ma attempted to persuade Chang to agree to the government’s development plan. Upon hearing this, the 70-year old Chang was seen on TV, dropping to her knees and bowing her head three times, begging the president to change his mind.

Although only a small portion of the 185 hectares of the former arsenal will be used for construction of the NBP, the 25-hectare wetland is considered the most choice of the whole piece. Chang stressed that once the concrete structure is built, it will destroy the ecological balance of the area.

On May 16, in a compromise, cabinet spokesman Johnny Chiang said that the government will suspended construction at the park, and will form a monitoring group to conduct environmental assessments over the next six months to find a balance between ecological conservation and development.

Academia Sinica: surprised and frustrated

According to the United Daily News, the Academia Sinica President Wong Chi-huey said, “I can understand the sense of distrust expressed by environmental groups." Taiwanese society previously had no respect for environmental protection. He hopes this incident will establish a new pattern of taking environmental protection into account in future economic developments.

However, Wong noted that the development of Taiwan’s biotech industry is a race against time. Putting its national resources behind growing its biotechnology, South Korea has successfully developed four new drugs that have been approved by the U.S. Food and Drug Administration. Taiwan, on the other hand, has no drugs in development due to the difficult integration of all parties involved. If Taiwan cannot create a biotech brand, it will forever remain only as an original equipment manufacturer (OEM).

Although Taiwan might have excellent basic research and experience in human trials, it lacks the transition process to new drug development. The establishment of the NBP is designed to create those missing links. Wong said there were several cities and counties that approached him to offer land for a national biotechnology park, but he declined their offers thinking that the NBP would benefit from being close to Academia Sinica, National Taiwan University, National Yang Ming Medical University and other major hospitals in the Taipei metropolitan area.

The Central News Agency reported, Academia Sinica thinks the wetland Chang Hsiao-feng is striving to preserve is not located within the planned biotech research park, but the media and other groups have focused their attention and attacks on Academia Sinica. All this has left Wong feeling surprised and frustrated.

As an internationally recognized chemist, Wong has worked at the biotech research unit of Scripps Research Institute in La Jolla, California and was recruited by former Academia Sinica President Lee Yuan-tse to come to work in Taiwan. Many people feel sorry for Wong who is regarded as Taiwan's best contender for a Nobel Prize, but now, also considered an ecological foe.

Has Taiwan learned its lesson?

Because of its proximity to the capital, Nangang was selected as the site for the “202 Arsenal” when it relocated from China to Taiwan in 1949. As the production site of sensitive munitions, the arsenal was considered a high-risk military facility. In maintaining security, the depot was exempt from development and became isolated from the outside world. Military control, plus a low level of construction has kept the depot fairly unspoiled.

The “202 Arsenal” occupies a total area of 185 hectares. About 25.31 hectares are designated for the planned NBP site, in which only 9.6 hectares will be developed and the other 15.71 hectares will be preserved in its original green state. On the other 160 hectares of land, 15.8 hectares are used by Taiwan’s national army as a base for its Patriot missiles, and the remaining area (including the wetland Chang proposes to preserve) is currently not tied to any plans, reported the United Evening News.

With regard to the current dispute for the NBP, the United Daily News editorial said it is sad that Taiwan has paid a heavy price for not yet learning to discuss issues of environmental conservation and development and it has resulted in not being able to attract long-term foreign investment. Ever since the beginning of the large-scale environmental protests movement (the Anti-DuPont incident in Lugang, Changhua County) in 1985, the emphasis has been on using emotional warfare to get the other side to surrender. This is not a wise approach for dealing with such issues.

However, another writer Sang Ping-zai expressed a different view in the United Daily News. “I saw something great from this dispute. That is, the government reacted immediately to the cause Chang Hsiao-feng stated. Even President Ma entered into the dialogue. Both sides are rational. Whatever the outcome, both sides are honest and focused on the issue.”

This response differed from the past, Sang noted, “There have been numerous social movements where…the government did not want to talk to the other sides, blaming them for their political motivations…” "This time, Ma’s administration took a high-profile response to Chang Hsiao-feng, as Chang is a famous female writer who has a good reputation in society. The most important thing is that she is not considered a political figure. There is no need for political concern for the Ma’s administration,” said Sang

Environmental protection vs. technology

In the editorial, the United Daily News added, “Biotechnology is the fourth industrial revolution, and a high value-added knowledge industry. It is a brand new industry to transform the island and give birth to a new Taiwan.

The Economic Daily News also says the “202 Arsenal” is a rare and precious area of land and swamp in Taipei. But there are many other similar places with little land value in Taiwan. From the perspective of economic development, employment opportunities have been concentrated in the north, not in the south, resulting in a serious imbalance. Therefore, the government should place more effort on finding other locations in central and southern Taiwan for biological science and technology parks to replace the “202 Arsenal.”

Kaohsiung City Mayor Chen Chu said that if Taipei does not want the biotech park, Kaohsiung welcomes it with open arms. She noted that it takes only 90 minutes from Taipei to Kaohsiung by high-speed train. There are many universities in Kaohsiung so there is no shortage of talent.

Stricken with cancer but still fighting to preserve one of Taipei’s last large green spaces, Chang has gained the support from Taiwan’s literary and arts community. In a statement on May 16, the group said they wanted to follow the example of the Na’vi tribe in the Hollywood movie Avatar to fight to preserve the land. Chang and her supporters have demanded that Academia Sinica and the consortium leave the green site, and have asked President Ma to preserve the 185-hectare green space as Taipei's Central Park. They urged the people to work together to help save the last piece of green space in Taipei.

Can environmental protection and technology development co-exist side by side? The successful development of biotech parks in Boston, San Francisco and San Diego seems to indicate so. In the meantime, Wong is still hoping that the discussion of the National Biotechnology Park will return to a more rational footing.

Chinese singers seek stardom in Taiwan

2010-06-10T11:35:00.000-07:00

Recently, Chinese singer Hu Xia claimed first place on the final episode of “Super Star Avenue,” Taiwan’s popular singing contest. He was the first Chinese singer to win on Taiwan’s equivalent of “American Idol” and “Britain’s Got Talent” where contestants compete hoping to win a record deal. Other Chinese performers are also coming to Taiwan to try their luck on another music contest, “Super Idol.”

Hosted by Matilda Tao, “Super Star Avenue” first aired on the Taipei-based China Television Corporation (CTV) in January 2007. Each six-month season works toward finding the next singing superstar. Lin Yu-chun, now considered Taiwan’s “Susan Boyle” rose from obscurity after appearing on “Super Star Avenue.” Even though Lin did not win, this April he was invited to sing on the Ellen DeGeneres Show and Lopez Tonight in the US. He has since signed a contract with Sony Music Entertainment.

In the latest season, a vocal group nick-named the “Three Handsomes” – Mo Sao-srai, Jiang Yifan and Li Guangbo from China’s Shandong, Heilongjiang and Hubei provinces respectively, made it to the finals.

According to the United Daily News, these young Chinese men, with an average age of 20, moved to Taiwan for over six months and stayed in a small motel in Taipei. All the arrangements were made by the production company. Li said, “I was told that Taiwan is a beautiful island. I was eager to come here and see what it is like. But it is hot and humid.” These four singers from China experienced “the warmest ever winter in their lives.”

Living in a place different from their native land and living on very little money was tough. They survived with thanks to a large group of Hu’s fans who supplied them with abundant summer fruits, snacks, Taiwanese specialties, and even stomach and throat relievers. Hu has no regrets, despite a diet of cheap braised pork and rice, and the time-consuming visa process; the men hope to release records in Taiwan. The group even said that they would like to find Taiwanese brides, because “the girls here are particularly kind.”

Another popular talent show is “Super Idol.” Around since October 2007, the show is hosted by Li Chin. The show is less restrictive in terms of the age of its participants, their professions, and does not limit itself to filming only in Taiwan.

A recent contestant was 27-year-old Li Yasa of Shanghai, China, who released an album in Taiwan a few years ago. At that time, she did not come to Taiwan to promote the album. This time around, she temporarily relocated to Taiwan for six months and found an apartment while appearing on “Super Idol.” Since she came from a well-to-do family, her relocation was not a financial burden.

Another contestant was Duan Xuming, originally an actor from Harbin province, China. He married a Taiwanese businesswoman, Liu Si-ling, who runs the well-known bridal salon “Paris, France.” Under her encouragement, Duan participated in the “Super Idol” contest.

Contestants have also included Kim Kiji, an overseas Chinese artist from South Korea, and a freshman in the advertising department at National Chengchi University. He stumbled across the “Super Idol” contest by chance, and he had a hard time getting used to the food and the humid weather in Taiwan. Language was also a big barrier for him. Having a limited Chinese vocabulary, he could not understand what the judges were saying. Nevertheless, he sees Taiwan as a “land full of opportunities. More and more people like Taiwan. I want to be a singer and have albums made in Taiwan,” he said.

Others hoping to capitalize on the popularity of the shows include 29-year-old Zhao Taixiang from Burma. With two albums already released in Burma, he hopes the added exposure will result in an album deal in Taiwan. In the meantime, he is coping with the keen competition in Taiwan and earning a living by working in a pub. Someday, he hopes to return to Burma as a star.

Former overseas Chinese contestants who have shown promise on the shows have included Wong Jinglun, Ai Chen and Fu Chunying. They have all successfully started their singing careers and released albums in Taiwan.

At 28, Ai came from Malaysia in 2002 to take part in “Super Idol.” After several failed attempts, he finally won in January 2010. Another fellow Malaysian, 26-year old Fu also participated in “Super Idol.” She won second place after Ai. Fu noted, “Taiwan and Malaysia are home for me. But it bothers me that laundry takes so long to dry in this humid Taipei weather.” Even coming sixth place can mean a significant break-through. Just ask Wong, who appeared during the third season of “Super Star Avenue.” The 27 year-old Singaporean still signed a contract with Warner Music Taiwan, and has since released two albums in two years. He is now working to build his fan base in China.

Taiwanese food goes global

2010-06-10T11:30:00.000-07:00

For decades, Taiwan has been famous for manufacturing computer chips and hardware. Now, the island is also cultivating its soft power over the Chinese world through its specialty foods.

At the Shi-lin Night Market in Taipei, you will see groups of tourists from Japan, Hong Kong and Southeast Asia seeking out local Taiwanese food delicacies. Every day, a long queue of foreign visitors lines up outside of Ding Tai Fun Dumpling House to sample its famous soup dumplings. Advertised on travel web sites from Singapore and Malaysia, you will see tour options for groups to visit Taipei to sample Taiwanese snack food. Taiwanese specialties such as beef soup noodles, soup dumplings, pineapple cake and pearl milk tea have won the taste buds of 1.9 billion Chinese and Southeast Asians. And in major cities throughout California, bubble tea shops are as equally populated as Starbucks.

Instant noodles remain one of Taiwan’s favorite foods. Early success stories have included Master Kong, a brand name of Taiwan’s Tingyi Holding, now the largest instant noodle manufacturer in China. The company specializes in making instant noodles, baked goods and soft drinks. Another Taiwanese company in China is Want Want, which specializes in rice cakes and drinks. They have been in the Chinese market since the 1980s.

In Southeast Asia, where the consumer market numbers 600 million people, Namchow (Thailand) Limited, established by Namchow Group (Taiwan) in 1991, is a successful manufacturer and distributor of rice crackers, rice snacks and instant noodles. Also started in the same year, Vedan set up a company in Vietnam to make and market instant noodles, soft drinks, nutrition products and cosmetics.

Resurgence of home cooking

With a renewed interest in home cooking throughout the Taipei area, Taiwan's gourmet industry is taking another step toward maturity.

City’super, a supermarket originally from Hong Kong, arrived in Taiwan and started offering cooking lessons in 2004. Ever since, City’super has cultivated a customer base that is highly health conscious and inclined towards home cooked gourmet meals.

And it is not simply an elite population who are eager to learn the art of cooking. Cooking classes throughout Taipei are often packed to capacity. Even during a working Friday afternoon, between 50 and 70 eager students fill the cooking classroom of the Xinyi Eslite Bookstore.

Given Taiwan’s abundant snack food culture that provides an endless variety of inexpensive convenience foods, why would anyone want to study cooking? Taiwan’s growing health consciousness plays a part, according to the Commonwealth magazine. The magazine mentioned Yang Su-ling, who works in Taipei, and grabs a quick lunch before returning to work again. Like others who are becoming more health conscious, Yang enjoys cooking for herself.

Another reason behind the craze is the desire of Taiwanese people to cultivate closer familial bonds, and cooking together is one of the best opportunities to interact with one’s children. Founded more than 11 years ago, Choi's Home School of Culinary Arts started children's classes two years ago, after seeing a desire for parent-child interaction in the kitchen.

Promoting Taiwan’s gourmet foods

Parents who use cooking to further cement family ties can also plant a seed that will take culinary roots. This can be seen as more kids consider pursuing a career in the culinary arts. It is also a clear indication that the profession is gradually gaining social acceptance according to the magazine.

This March, Taiwanese pastry chef Wu Pao-chun won the title of Master de la Boulangerie in the bread category of the Bakery Masters Competition in Paris. Wu was able to beat 24 contestants from 17 countries. Within eight hours, Wu was required to bake bread such as baguettes and sandwich loaves and something typifying Taiwan. Among the ingredients of Wu’s winning bread were Taiwanese millet wine, dried lychees and organic roses.

Meanwhile, Taiwan will launch a project to promote Taiwanese gourmet food into the global market place, according to a report from the Economic Daily News. Funded by the National Development Fund and private investors, the project will form an “international Taiwanese gourmet food promotion company” to set up state-owned restaurants overseas.

Seeing the merits of promoting Taiwan through its specialty foods, the paper said a specialized government institution will standardize a variety of Taiwanese dishes and train chefs to further promote Taiwan through foods. Other collaborating institutes will be established to expand the business horizons of Taiwanese cuisine by opening chain restaurants, participating in business fairs and holding promotional activities for Taiwanese culinary arts.

Jade Mountain

2010-05-06T10:20:00.000-07:00

Taiwan’s tallest mountain is getting renewed international interest by making the shortlist of the New Seven Wonders of Nature Contest last summer. Standing at 3,952 meters high (13,966 feet), Jade Mountain is the jewel of Yushan National Park, a parkland sanctuary rich in plant and animal life.

Jade Mountain, also known as Yushan, is a Taiwanese icon. Although taller than Mount Fuji by 176 meters (577 ft.), it is not visible to most of Taiwan’s people. Unlike Mount Fuji which is readily seen by millions of Japanese throughout all seasons. Yushan can only be seen once you are in the mountains. After it was realized that Yushan was higher than Mt. Fuji, its reputation skyrocketed and it became a popular destination for Japanese and Taiwanese in the first half of the 20th Century. In fact, climbing the mountain became a popular graduation ritual.

When the Chinese Nationalists fled to Taiwan in 1949, the mountain’s popularity waned with a more mainland-centric government. “The status grew slowly, alongside a Taiwanese identity that is still struggling to define itself and its icons,” said the Wall Street Journal.

Today, Yushan National Park is again a popular tourist destination, and climbing Jade Mountain has once more become a post-graduation tradition. The park stretches over 105,000 hectares (259 acres), covering subtropical forest to highland scrub. It has incredible biodiversity and in the last ten years, has seen a rebound of some of the park’s endangered wildlife. The park is well protected with a maximum of only 90 hikers allowed to start the two-day climb up to Jade Mountain each day. During certain months, the mountain is closed entirely to prevent overuse.

If you think Jade Mountain should be one of the New Seven Wonders, voting will continue into 2011. The winner will be announced on November 11, 2011. To vote for Yushan, visit: http://www.new7wonders.com/community/en/new7wonders/new7wonders_of_nature/finalists?page=1.

Photo by Chen Fang-yi (Taiwan Tourism Bureau)

Photo by Chen Fang-yi (Taiwan Tourism Bureau)

Photo by Yang Chun-shan (Taiwan Tourism Bureau)

Courtesy of the Government Information Office

Courtesy of the Government Information Office

Courtesy of the Government Information Office

Courtesy of the Government Information Office

Courtesty of the Government Information Office

Taiwan’s Generation X: High hopes meet hard reality

2010-05-06T10:16:00.000-07:00

Generation X, those born from 1971-1980, make up Taiwan’s largest population segment. Born at the beginning of the island’s economic boom, they grew up during the island’s most prosperous period and now face a world with fewer opportunities than their Baby Boomers parents.

God’s favored ones

It is not an exaggeration to say that Generation X (Gen X) are God’s favored ones in Taiwan. In the 1980s, Taiwan achieved an economic miracle, becoming one of Asia's Four Little Dragons. In the years from 1978 to 1990, Taiwan's economic growth rate averaged 8.4 percent and the unemployment rate was 1.94 percent. Average national income was US$2,455 in 1980 and increased to US$7,622 by 1990. Martial law was lifted in 1987, so Gen X only have a vague memory of Taiwan under an authoritarian government. They know little about the decades of cold war across the Taiwan Strait, not to mention the military confrontations in the 1950s. Mainly in their thirties, they take Taiwan’s pluralistic, free and democratic society for granted. They are well-traveled and many have studied abroad, giving them a very international outlook.

Baby Boomers, on the other hand, were born in the decades immediately after World War II. In particular, the term refers to the large population of people who were young adults in the 1960s and who went on to define themselves as a distinct generation.

Employment is difficult, getting married even more so

In traditional Chinese culture, marriage and a career are expected to have been achieved by the age of 30. However, for Gen X, it is proving difficult to have a career, much less get married.

Ten years ago, when the first of Gen X started graduating from college, they entered the job market just in time to face the 1997 Asian Financial Crisis. In the past 10 years, there have been several economic booms and bubbles with the rise of China’s economy. Taiwan, however, has not enjoyed the same level of economic prosperity. According to the Directorate-General of Budget, Accounting and Statistics, Taiwan’s current unemployment rate for workers ages 30-34 is 5.68 percent. In 2000, it was only 2.59 percent.

According to the Interior Ministry, the average age at which men marry is 32.9, while for women, it is 29.5. Both men and women are delaying marriage one to two years compared with ten years ago. This has also led to a significant drop in the birth rate.

Taking control

According to Chiu Tien-chu, professor of psychology at Shih Hsin University, Taipei, Gen X grew up in a culture with abundant choices, but they have difficulty finding a purpose. If you were to consider Baby Boomers as people born in the late 1940s and early 1950s, according the Global View monthly, these are the people who brought about Taiwan’s economic miracle with their hard work ethic and a focus on the Chinese tradition of family. How then can Gen X compare? Chiu said Gen X are not sure of who they are nor what they should do.

Professor Liu Weigong of Soochow University told Global View that the "X generation has broken authoritarian rule, and abandoned the traditional routine of life." Recently, Liu’s assistant quit in order to travel in Nepal. His assistant told him, "I want to spend all my money, and then come back to look for work again." Liu summed up such behavior, saying, "X generation youths do not learn from predecessors. They are a group who set up their own examples and create their own paradigm."

Then again, Lian Chia-an, a 35-year old medical graduate does not work at a famous hospital in a big city. Instead, he works in a remote part of Hualien County, serving a large indigenous population. This year, he participated in Taiwan’s disaster relief team aiding victims in Haiti.

Gen X does not strive for promotion. They value choices, style and have certain tastes. Though this does not mean they live luxuriously since they actually take advantage of information tools allowing them to comparison shop.

Different from the previous generations, many Gen Xers live with their parents. According to the “Eastern Integrated Consumer Profile,” the ratio of Gen X living with their parents is 22.3 percent while that of Baby Boomers at the age of 35 was 12.7 percent.

How to succeed without a rich dad?

Born in 1978, Hsu Chen-bin said, "Until now, all I think about is finding a job, and making ends meet, not long-term career development." An Economics major in college, Hsu has changed jobs four times, staying only a short time because the jobs were not what he was interested in and offered a low salary and promotion opportunities. Chu Hsue-heng, a 35-year-old professional translator pointed out that almost all the successful people in Taiwan's Gen X are celebrities in entertainment, not in other areas. “If you don’t have a rich dad, how can you compete in prominent business and political circles?”

Wang Hsiao-ping, 35, is the daughter of a global OEM shoe king. She said, "The older generation work really hard. My father is 70-years old and is still busy with the factory." She added, "I do not want to work when I am 70. I hope to work up to 45, earn enough money to enjoy life." Wang said, "We Generation X will face a dilemma to take over the family business. If we do take it over, we will be given a burden from our elders; if not, we’ll be blamed by our parents." Ten years ago, she graduated from the Department of Economics, University of Southern California. Afterwards, she started her own business by creating a brand name women shoes, Miss Sofi. She now has 40 stores in Taiwan and China with annual sales in excess of NT$ 600 million (US$18.75 million). She said that the previous generation worked hard, while the young generation pays attention to efficiency and is good at creating a brand name.

"The Baby Boomers are to blame"

“Stupid, it is the baby boom generation!” is a book written by Tu Nan Po (pseudonym) of the generation born in the 1960s. Speaking on behalf of Gen X, he criticizes Baby Boomers in his book.

First, the Boomers are the beneficiaries of Taiwan's economic take-off. During the restructuring of the post-war economic order, dramatic changes took place in Taiwan’s society followed by a quiet science and technology revolution. The Baby Boomers had opportunities as long as they worked hard. Now they are the pillars of Taiwan’s society.

Second, Baby Boomers have criticized Generation X for being unable to endure hardship and competition. In fact, it is the Boomers who have not expanded the job market in the last 10 years. They have set up roadblocks with the patriarchal management style in the workplace, demanding that Gen X be more dedicated, yet giving limited space for the younger generation to develop.

Third, society should give Gen X more opportunities. These younger people grew up in the world of the internet. They are logical thinkers, who are idealistic, enthusiastic and dynamic. They will bring vision and innovation to society.

A hopeful nation is reflected in its young people

Indeed, success has not been as easy for Gen X as it was for the Baby Boomers. Boomers faced a labor-intensive economic structure. Without dazzling degrees, they could get rich as long as they worked hard. Their offspring face a technology-intensive, knowledge-intensive economic structure. Their threshold for success is higher. They also face stiffer competition from emerging economies from India and China. In addition, many jobs are now replaced by automation. The decision-making positions are held by Boomers and there are no job guarantees even with an advanced degree from a foreign university.

An editorial in the Economic Daily points out that it is common for young people to succeed from the ground up if they work hard. Now the young people might have a sound education, but they cannot play to their strengths. Their frustration is understandable.

A professor of political science at National Taiwan University, Tao Yi-feng wrote in the Commonwealth monthly that the majority of the continually unemployed young people are from low- to middle-class families. They are not people who don’t want to work. They just can’t find jobs. Tao urged "the government to consider how to give young people good jobs. This requires a complete policy to enhance the competitiveness of youth and to improve their employment opportunities. The nation is full of hope as long as young people persist with hope ."

Taiwanese vegetable vendor wins TIME's philanthropic award

2010-05-06T10:14:00.000-07:00

Chen Shu-chu, one of TIME magazine’s top 100 “heroes” this year, received her award at New York’s Lincoln Center on May 4. As a vegetable vendor at a traditional market in Taitung in eastern Taiwan, she has donated up to US$320,000 to various charities in Taiwan. Beside TIME’s honor, Chen is also one of the heroes of philanthropy from Asia named by Forbes Magazine. On her way back to Taiwan, Chen will stop in San Francisco from May 6 to May 7.

Chen, 61 and unmarried, has been working at the Taitung County Central Market since she was 13. Coming from a poor family, the death of Chen’s mother meant that she was not able to complete her elementary school education. To this day, she continues to get up at 3 am to prepare for her workday and her stall is still one of the last to close. From her modest living, she has given US$32,000 to a children’s fund, US$144,000 to help build a library at the school she once attended, and another US$32,000 to a local orphanage. She firmly believes that “money serves its purpose only when it is used for those who are in need.”

Taiwan’s President Ma Ying-jeou lauded Chen as an “ambassador of the country with a loving heart.” Somewhat embarrassed by all this fuss, she said, “There isn’t much to talk about, because I did not enter any competition.” Many feel differently, and among them is Taiwan-born director Ang Lee who wrote an introduction for Chen in TIME. In his article entitled “Small, extraordinary act of kindness,” he said, “What’s so wonderful about Chen’s achievement is not its extraordinariness but that it is so simple and matter of fact in its generosity.”

If you would like to read more of Ang Lee’s comments in TIME, please click on the link below:
http://www.time.com/time/specials/packages/article/0,28804,1984685_1984949_1985237,00.html

Taiwanese American Cultural Festival in Union Square, May 8

2010-05-06T10:12:00.000-07:00

As part of the Asian Pacific American Heritage Month, Union Square will be filled with food and performances highlighting Taiwanese culture on May 8. Held in the heart of San Francisco’s shopping area, the Taiwanese American Cultural Festival will be open from 10am to 6pm.

The main theme of this year's cultural festival is “Vibrant Taiwan." Taking center stage will be performances from well-known Taiwanese American musicians and dancers from the Department of Dance at the National Taiwan Arts University. The group will also perform again on May 9 at the Yerba Buena Gardens, San Francisco. The festival will pull at the heartstrings of those who miss the sounds, sights and tastes of Taiwan.

Come discover Taiwan through the marriage of traditional and innovative dance performances. With ten pieces in total, each one represents the various cultural aspects of Taiwan. There will also be many folk art demonstrations along with traditional Taiwanese food. Exhibition booths will have Taiwanese products, such as orchids, snacks, technology and art works.

The event is organized by the Taiwanese American Federation of Northern California. There will be free bus shuttles between the South Bay and downtown San Francisco from 9am to 6pm. To check the schedule and different locations to catch the shuttles, please visit the festival website: http://www.sftafest.org/. Admission to the festival is free.

"Made in Taiwan," a dynamic new film series starting May 20

2010-05-06T10:10:00.000-07:00

Beginning May 20, Link TV will present Made in Taiwan, a dynamic series of new Taiwanese cinema never before seen on American television. The weekly series will run through July 8. The diverse documentary and narrative films explore social and environmental issues facing the island.

The film series include Blue Cha Cha, Nyonya's Taste of Life, The Squid Daddy's Labor Room, Vision of Darkness, The Secret in the Satchel, Artemisia, The Doctor, and Let It Be. For show times and previews of the eight films, please visit: http://www.linktv.org/madeintaiwan.

The Made in Taiwan series of new films has been created in partnership with the Taipei Economic and Cultural Office in San Francisco and Taiwan's Government Information Office. Most of the films include new interviews with the filmmakers so audiences will also have the opportunity to meet energetic directors like Zero Chou, Ke Chin-yuan, Lin Tay-jou, Wen Zhi-yi, Chiang Hsiu-chiung and Cheng Wen-tang. Come and discover the distinct and vibrant Taiwanese culture through our young filmmakers’ eyes.

Link TV is a national satellite television station available on Channel 9410 on DISH® NETWORK and on Channel 375 on DIRECTV. You can also find out more about the films and interviews streamed at http://www.linktv.org/madeintaiwan. Link TV programs can also be found on select cable stations. In San Francisco, educational access TV Channel 27 airs Link TV all weekend long.

To find other cable stations that broadcast select Link TV programming, you can visit http://www.linktv.org/reception.

Taiwan directors share filmmaking experience at SFIFF

2010-05-06T10:08:00.000-07:00

The 53rd San Francisco International Film Festival (SFIFF) included two directors from Taiwan who shared their experiences with festival attendees. In the documentary film category, Liu Soung (Yellow Sheep River) and feature filmmaker Christina Yao (Empire of Silver) were present to answer the audience’s questions after their films.

Documenting the far western Chinese province of Gansu, Liu said he did not want to make a film that a director from China would make. Rather than presenting a documentary with political, economic or social viewpoints, Liu wanted to focus on the natural interaction of people and land. Charmed by the landscape of Yellow Sheep River and the repetitive rhythm of daily life there, Liu allowed the traditional patterns found in the farm village to tell its own story, free of dialogs and subtitles. Through it, he captured the beauty of simple details in the farmers’ daily lives.

With more than twenty years spent in making TV dramas and documentaries, and twice selected as the Best Director at the Golden Bell TV Awards, his filmmaking experience is extensive. Yellow Sheep River has already won the Best Documentary award at the Taipei Film Festival before premiering internationally at the SFIFF.

Taiwan was also represented by Christina Yao in her ambitious debut, Empire of Silver. Rachel Rosen, the Director of Programming at the San Francisco Film Society was amazed by the scope of the film. Yao successfully wove a tale of a Chinese banking family at the end of the Qing dynasty, filled with romance and history and made a lavish film worthy of a veteran director.

In Empire of Silver, the epic story of a Shanxi bank-owner’s family during the period of the most dramatic upheaval in modern China, Yao wanted to impress upon the audience the “business ethics” of traditional Chinese businessmen, especially compared to the American financial crisis. Yao emphasized how cultural values influence societal stability. She also answered the questions from the audience about the large-scale landscape shots featured in the film. She said her film crew spent six years traveling in four northern Chinese provinces and thirteen cities to shoot the breathtaking scenes.

Born in Taiwan, Yao currently lives in the Bay Area. She has directed over thirty plays and is well-known in the theater community in the United States and Taiwan. She received funding to make the film from Taiwanese IT tycoon Terry Gou.

President, opposition leader debate on China trade pact

2010-05-06T10:06:00.000-07:00

On April 25, Taiwan's President Ma Ying-jeou and the leader of the major opposition party held their first televised debate on the FTA-like agreement with China. President Ma said he will protect Taiwan's sovereignty yet bolster the island’s economy by signing the Economic Cooperation Framework Agreement (ECFA). Chairwoman Tsai Ing-wen, representing the Democratic Progressive Party (DPP) disagreed, charging that the pact would harm Taiwan politically and economically. The Taiwanese people are split on the benefits of the ECFA, so the heated exchange was an effort by both parties to win over skeptical supporters.

President Ma: ECFA needed to “develop a golden decade”

The debate focused on the need for the ECFA and its possible impacts. President Ma stressed that trade is the lifeline of Taiwan and the island cannot survive without foreign trade. During their eight years in power, the DPP adopted a closed-door policy toward China, causing Taiwan - originally the geographic center of East Asia - to be marginalized. “We cannot wait. I want to lead Taiwan to recover the lost eight years and move to a golden decade.” His aim is to recharge Taiwan's economy so it can once again lead the Four Asian Tigers.

It is also crucial that the ECFA be signed given the many FTA alliances between Taiwan’s neighbors. When the countries in Asia rushed to ink FTA alliances with each other, only Taiwan and North Korea were left isolated and excluded without any FTA.

President Ma said he is working to prevent hundreds of thousands of workers in Taiwan sitting idle and watching orders go to South Korea, Japan, and the ASEAN countries. He wants to do his best to keep factories operating in Taiwan and to protect employment opportunities on the island.

The DPP’s Tsai Ing-wen disagrees with President Ma’s assessment. She sees the ECFA as a wrong decision “made by misjudging the situation.” With a “must sign” as a precondition, Ma is losing his bargaining power and is in-effect surrendering Taiwan’s sovereignty. She emphasized that people are uncertain about the ECFA. And, it is the government’s responsibility to distribute the benefits of trade. If the benefits remain concentrated in the hands of a few industries, the decision would lose its legitimacy, according to Tsai.

President Ma argued that no matter what happens in the signing of the ECFA or any future consultation, he is committed to defending Taiwan's sovereignty and dignity. This will never change. Rebuffing Tsai’s argument that only big companies would benefit from an ECFA, Ma noted the relationship between large enterprises and small businesses are like “a bunch of rice dumplings attached through its strings.” If the heads of these strings get loose, all the dumplings would fall to the ground. He said, “Many small and medium-sized enterprises are satellite factories of the larger enterprises. They are mutually dependent, not antagonistic.”

He added that to reduce the impacts on Taiwan’s 17 traditional industries, the government has earmarked a NT$95 billion (US$3 billion) budget to help these industries transition or upgrade their competitiveness.

Tsai: “Taiwanese people have other options!”

Chairwoman Tsai said, “Taiwanese people have other choices." Through the WTO, APEC, or other bilateral and regional trade, Taiwan can strengthen its economic and trade relations with China and other countries without being trapped into signing the ECFA so Taiwan would be obliged to widely open its domestic market within ten years.

President Ma explained that the pace of Asian economic integration is moving quickly. If the government signs an FTA with China to fully open Taiwan’s market in one step, the impacts on Taiwan’s domestic industries would be too huge. In accounting for it, his government wants to delay the impacts with the signing of the ECFA, which would of open up Taiwan’s market gradually. President Ma said the ECFA is not sugar-coated poison. Signing the ECFA would affect about 100,000 people, including those in 17 vulnerable, mass production industries, but this does not necessarily mean unemployment. He said it is an exaggeration for the DPP to estimate an impact on 5.9 million people without saying how these figures were derived.

In addressing how the ECFA would widen the gap between the rich and the poor in Taiwan, President Ma said the imbalance could be rectified through taxation and social welfare programs. It does not make sense to reject the ECFA due to the gap between the rich and the poor.

Public support for ECFA rises after televised debate

After the debate, a poll conducted by the Taipei-based China Times showed that 63 percent of respondents felt the debate helped them reach a better understanding of the ECFA. However, 23 percent said the debate still left them unclear about the nature of the agreement. Regarding the performance of the debaters, 41 percent of those polled thought Ma did a better job than Tsai, while 28 percent thought the opposite.

A United Daily News survey indicated that 46 percent of respondents felt better informed about the ECFA after watching the debate, but 44 percent still professed to feeling “in the dark” when it comes to the contents of the ECFA. Overall, 43 percent of respondents thought Ma did a good job, while 30 percent thought Tsai did.

A third poll, conducted by the Liberty Times found that nearly 60 percent of respondents felt that an ECFA referendum should be held before an agreement is signed. The paper’s survey revealed that 35 percent believed there was no need for such an agreement. Only 28 percent of those surveyed were in favor of inking an ECFA with the mainland, with 36 percent seeing the agreement as having no effect.

Commons Daily News columnist Chang Lang said everyone in Taiwan has his or her own opinion as to who had the upper hand in the Ma-Tsai debate. He observed that as for the real-time television poll after the debate, the majority of the audience watching the pro-independence SET TV opposed the signing of the ECFA while those watching the televisions of CTi and ETtoday supported the signing of the ECFA. No matter how many times President Ma and DPP Chairwoman Tsai debate, the fundamental blocks of pro-unification and pro-independence will never budge, Chang noted.

World's cell phone leader keeps alert

2010-05-06T10:05:00.000-07:00

Almost everyone in Taiwan uses cell phones, but few know that one-fifth of the world’s cell phone keypads are made by Taiwan’s Silitech Technology Corporation in Tamsui, Taipei County. According to the Commonwealth monthly, the five largest cell phone makers are all Silitech’s customers.

Becoming the largest supplier

Located in the countryside where global positioning systems (GPS) are ineffective, Silitech has nevertheless grown to be the largest supplier of cell phone keypads in the world. Defeating its top three Japanese competitors (ShinEtsu, Polymatech and Sunarrow), the company grabbed 21 percent of the global market share in 2009. With steady profits, Silitech’s stocks have reached record earnings of NT$6.5 (US$.20 cents) per share for five straight years.

Silitech, originally named Silitek, was founded in 1978 to make rubber keypads for calculators. In 1995, Silitek started researching and developing cell phone keypads, a market dominated by Japanese manufacturers at the time. In 2002, a new and independent company called Silitech was formed to take over the rubber department and Silitek merged with Lite-On Group.

Commonwealth reported that Silitech was not the first Taiwanese company to enter the cell phone keypad market, however, its success and reliance on their “talent bank” makes them unique. The majority of Silitech’s mid- to top-level executives came from Texas Instruments and Lite-On Group. Its success could also be attributed to the company’s aggressive engagement in R&D which has made them the leader in their field. Unlike other companies, once they began making money, they did not focus on constructing an impressive corporate headquarters, but rather, Silitech spent its money on R&D after its stocks rose to NT$200 per share.

Business secret: low turnover of personnel

Cell phone keypads are not a high technology sector by nature, but rather the complicated engineering of materials. The leading firms are the ones with more experienced professionals, and “the biggest advantage Silitech enjoys over its competitors is a lower turnover of personnel. Experienced senior engineers stay with the company. The passing of experience from seniors to newcomers is easy,” said Chuang Hong-wen, a deputy manager with Silitech.

In just six years, Silitech has become one of the full suppliers to cell phone keypads for Nokia, which annually sells more than 400 million cell phones. About one-third of Nokia’s cell phone keypads are manufactured by Silitech.

According to International Data Corporation, a well-known market research and analysis firm, the global cell phone market grew 11.3 percent with total quarterly sales of 325.3 million units in the fourth quarter of 2009. Nokia gained the top spot shipping 126.9 million units and a global device market share of 39 percent, followed by Samsung (68.8 million units and 21.1 percent market share), LG Electronics (33.9 million units and 10.4 percent), Sony Ericsson (14.6 million units and 4.5 percent) and Motorola (12 million units and 3.7 percent). These manufacturers accounted for almost 80 percent of all mobile phones sold at that time.

Samsung and LG of South Korea are the largest cell phone makers in Asia, and the second and the third largest in the world. It is extremely difficult for a Taiwanese business to be part of the supply chain for Korean cell phones. However, Silitech has done so.

Ready for the worst case scenarios

The speed of introducing new cell phone models by Samsung and LG is far faster than their competitors. This creates a lot of pressure for their suppliers because they have to modify the tooling in a very short period of time.

The big European and American cell phone makers would usually give Silitech at least three days from tooling modification to sample inspection, while Samsung and LG only allow one day to finish the process.

Silitech is ready for the challenge. It keeps itself alert, mindful of solutions to deal with the worst case scenarios in developing new products and managing new growth in the company, observed Commonwealth. This ability to adapt will become increasingly important as more people switch to touch-screen smart phones.

Once biggest school shrinks with declining birth rate

2010-05-06T10:04:00.000-07:00

Lao Song Elementary School, once the world’s largest elementary school with enrollment of 11,000 students now has a student population of just 778. Located adjacent to Monga Historic District in Taipei City, it has long been the breeding ground for Taiwan’s elites. What is happening at Lao Song is not unique in Taiwan; it has been brought on by the island’s low birth rate.

According to the Directorate-General of Budget, Accounting and Statistics, by the end of 2009, primary and elementary school children under the age of 12 accounted for 12 percent of the total population or 2.8 million. Five years ago, the same age group totaled 3.41 million and accounted for 15 percent of Taiwan’s population. In just half a decade, that segment has shrunk by 600,000. As a result of the island’s low birth rate, kindergartens and nurseries have also decreased by about 20 percent from five years ago.

Part of this might be attributed to the "Calendar Effect" as more mothers choose to give birth during more favorable zodiac signs, but it cannot account for the overall decrease. Since the year of the tiger is a less desirable year, according to Chinese custom, the number of babies born during the first two months of this year was 9 percent less than for the same period in 2009 according to the United Daily News. However, the low birth rate can also be attributed to other factors.

Government officials said that due to the weak economy, the marriage rate in 2009 hit a record low of 5.07 percent. If the situation does not improve by the end of 2011, Taiwan’s birth rate will be lower than the death rate by 2017, causing negative population growth. Demography scholars already estimate that last year’s fertility rate in Taiwan of the world's lowest, now they expect 2010 to be even lower. According to Yang Wen-shan, a researcher of sociology at Academia Sinica, Taiwan and Portugal are the only two countries in the world where birth rates continue to decline while many other countries reversed the declining trend in 2006.

In speaking to the Taipei-based China Times, Hsu Wen-gui, a teacher who has taught at the Lao Song Elementary School for 35 years, still remembers the glory days. He said it used to take a whole hour just for all the students to group together in the morning. If you looked out then, the children were like swarms of ants forming their lines.

However, if this downward trend continues, Taiwan will vanish naturally without an outside attack, according to Sun Te-hsiung, a member of the Population Policy Committee at the Ministry of the Interior and also a former chairman of Taiwan’s Demography Association. He has put forth a slogan - "Children are our national assets and bearing children is a citizen's duty" – to combat the problem.

Singles to be “punished” under new health insurance?

2010-05-06T10:03:00.000-07:00

Once Taiwan’s second-generation health insurance is implemented in 2012, single people will pay higher premiums according to the Taipei-based Broadcasting Corporation of China. This had led many to cry foul, saying it punishes singles and is discriminatory.

Recently, Taiwan’s Executive Yuan passed major healthcare reforms that will redistribute the burden of premium rates and change the calculation basis from personal income to total household income. About 50-60 percent of Taiwan’s insured will keep the same or lower premiums, while the other half will pay more. Hardest hit will be singles and people earning high incomes with few dependents.

The National Health Insurance Bureau said premiums under the new system are calculated on the basis of total household income, instead of personal income. This was done in the hope that people with more dependents will pay less. Under the current system, a household with an income of NT$50,000 (US$1,600) per month with four family members pays a monthly premium of NT$3,000 (US$95). But, under the new system, they would only pay NT$1,600 (US$50), an average of about NT$400 (US$13) per head. A single person with the same monthly income of NT$50,000, would see his or her premium increase from NT$755 (US$24) to NT$1,600 (US$50), more than double the current rate.

Many citizens have taken to the media to criticize the second-generation health insurance. Li Shi-wei, a single teacher, wrote to the editor of the United Daily News saying that the health insurance increases should not take advantage of single people in Taiwan. It is not reasonable or fair when the same commodity sells for different prices to different individuals just based on their income, said Li.

Regarding the redistribution, Health Minister Yaung Chih-liang said the new system would be fairer for a family with more dependents. In a social insurance system, people with larger incomes should assist those on low incomes and the unemployed, and small families should help big families. Yang said it is not meant as a punishment, nor is it discriminatory.

In an editorial disagreeing with Yang, the United Daily News commented that the government and the general public should give serious thought to Taiwan’s expanding population of singles. The concept of marriage and family is changing and the paper urged the government to adjust their policies to accommodate these ongoing social changes.

As government statistics have clearly shown, there is an increased pattern of late marriage, no marriage, cohabitation without marriage, and increased divorce rates in Taiwan. All of which results in a growing single population. The concept of traditional family is changing. Some demographic scholars have even predicted that singles will become the mainstream in Taiwan.

United Daily News stressed that the government must accurately see the trend of social change and accept that “single is one of the options in life.” In an open society, people should be more tolerant, considerate and be on an equal basis. The paper noted that the distribution of social resources must offer equal opportunities.

Taiwan tackles rising demand for guest workers

2010-05-06T10:02:00.000-07:00

Over the last few years, the number of “healthcare workers” in Taiwan has gradually increased because of the island’s aging population. According to the United Daily News, for the first time, the number of welfare workers has surpassed those who work in the industrial sector. This is partly as a consequence of the 2008-2009 economic downturns, but is also attributed to the strong demand for private long-term care personnel.

Until 1989, Taiwan did not allow low-skilled foreign workers entry, and strictly controlled other types of workers. In promoting the 14 major infrastructure construction projects, the government took an ad-hoc approach and accepted the first batch of low-skilled foreign construction workers. Three years later, the Employment Services Act was passed to allow private industries to hire foreign workers. This opened the door for more foreign workers to enter Taiwan for employment.

Since then, the vast majority of guest workers in Taiwan have been “industrial workers” employed in manufacturing and construction, with limited numbers working as caregivers. Starting in 2008, the number of social welfare workers began increasing and the number of industrial workers began to fall. In April 2009, the total number of welfare workers increased to 172,657, 942 more than the number of industrial workers from a year ago.

Tsai Meng-liang of the Council of Labor Affairs said this is a reflection of Taiwan’s economy and social structure. In the United Daily News he noted that the economy is recovering with the number of industrial orders on the rise, this will likely trigger a fresh demand for industrial workers.

In commenting on the rising number of healthcare workers in Taiwan, the United Evening News said that Taiwan is unprepared for the needs of an aging society. When the elderly population surges, the cheapest way to cope with it is to increase the number of guest workers.

Recently, the number of foreign workers not reporting to their jobs is rising. According to statistics compiled in 2009, the number of missing workers totaled 28,487, of which, 12,845 are Vietnamese. Beside Vietnamese workers, there are also many from the Philippines and Thailand. In the last 16 years, the number of Southeast Asian workers in Taiwan has risen by 30 times, according to the Bangkok Post. Currently, 61,000 Thai workers and their spouses are living in Taiwan.

The Council of Labor Affairs said that the top reasons for guest workers to disappear from their employment is that their “employment period” is about to expire or has expired, and they hope to dodge the high brokerage fees and/or that they are encouraged by other foreign workers to do so.

It is not an easy life for guest workers in Taiwan. Since they usually cannot speak Chinese, there is a language as well as a cultural barrier. Often they are lonely, homesick, and saddled with the burden of paying back large labor brokerage fees.

In order to prevent foreign workers from becoming so heavily indebted, the Council of Labor Affairs established a Direct Hiring Services Center in 2007. The center helps Taiwanese employers hire foreign workers directly; this cuts out agency fees by eliminating brokerage agencies.

Taiwan’s internet singing sensation takes US by storm

2010-05-06T10:01:00.000-07:00

The power of the Internet and social media have once again shown their power by aiding in the rise of Lin Yu-chun, now considered Taiwan’s very own ‘Susan Boyle.’ Lin rose from obscurity after appearing on a local talent show singing, “I will always love you.” His performance became a popular download, earning him recent guest appearances on two popular American talk shows.

On April 20, Lin with a bowl haircut and a red bow tie, appeared on the Ellen DeGeneres Show. Introduced by DeGeneres as the “marvelous boy from Taiwan,” Lin went on to perform his signature song as well as “Amazing Grace,” and received a standing ovation from a rapturous audience.

“I am very happy that more people in this world have gotten to know about Taiwan because of my singing,” said Lin. During the show, he also offered words of encouragement to children, who like himself, have been bullied at school. “There's a reason for everybody's existence in this world. Be confident. The best way to get back at those bullies is to be more successful than they are,” Lin said. At the end of the show, DeGeneres surprised him with a ticket to the annual party concert sponsored by “American Idol.”

It was a full day for Lin, who also appeared on Lopez Tonight where he sang “Saving All My Love for You” by Nichols Cosper, a music coach to superstars such as Madonna and Beyonce Knowles. Lin also sang “Total Eclipse of the Heart” accompanied by William Shatner, known for his role as Captain Kirk in Star Trek. Again Lin, and small screen legend Shatner, won a standing ovation from the audience.

Lin’s voice made such an impression, that Lopez’s band members encouraged him to seek further opportunities in the U.S. “I already feel more confident after taking part in the shows,” said Taiwan’s newest celebrity.

Lin was born in 1986 to a traditional Taiwanese family. His father was a military officer before retirement and maintained a strict household, discouraging Lin from choosing a singing career. But his mother loved English songs and encouraged him to sing. Growing up, he was often cared for by his grandmother and he dedicated “I Will Always Love You” to her.

Coming from a big family, Lin has many cousins and relatives who attended prestigious colleges in Taiwan and the United States. Upon graduation from college, he was not able to find a job, and felt inferior when attending family gatherings. Since appearing on Taiwan’s popular Super Star Boulevard and the American shows, his performances on YouTube have been watched over 6 million times.

Here are some links to his appearances in Taiwan and the shows in the United States.

http://www.youtube.com/watch?v=N_TidD2H4iI

http://ellen.warnerbros.com/2010/04/taiwans_singing_sensation_vod_0421.php

http://www.lopeztonight.com/episode_recaps_and_highlights/william_shatner_taiwanese_boy.php#blog

The cats of Houtong

2010-04-09T09:12:00.000-07:00

Houtong is a small village some 20 miles north of Taipei in Ruifang township. A center of coal mining during the Japanese colonial rule in the 1900s, Houtong is now known for the hundred’s of wild cats that inhabit its streets. Local residents treat the cats like family members and feed them regularly.

Chien Pei-ling, who is a cat lover and the wife of a veterinary, used her camera to record the co-existence of people and cats. She set up a "Cat Lady" blog to post her videos. This drew more people to visit Houtong. Now tourists from as far away as Japan come to Houtong to see the cats.

Eight years ago, the villagers began feeding the wild cats with fish and rice. This attracted more cats to Houtong until they became a noticeable attraction which now includes ubiquitous cat indicators, cat road signs and visitor instructions on cat watching.

With her camera to capture the feline charmers, Chien published a photo book and postcards of the cats. She also held a special exhibition of cats, and won the top prize at a photo competition on the island of Tashiro-jima, Japan, where people worship cats as gods. Through her lens, Chien has helped to bring new life to Houtong by transforming the old mining village into a tourist attraction.

"In the decline and fall of this remote village, we have built up a model of peaceful relationship between people and animals to show the bright side of human beings. We kindly treat these little animals with an attitude of respect for life. Our love for animals has turned the street cats into a tourist resource. This is a positive direction of a virtuous cycle, and will encourage more people to love cats and animals," said the Cat Lady.

Taiwan Insights appreciates her kindness and foresight with the following photos.

Justice minister resigns over death penalty issue

2010-04-09T09:11:00.000-07:00

On March 12, Taiwan’s Justice Minister Wang Ching-feng resigned after failing to win support to abolish the death penalty. She said abolishing capital punishment was not just her “personal, weird thinking” - it is a consensus in the international community. Appointed to replace her, Minister Tseng Yung-fu said his ministry would undertake a final review of the 44 current death penalty verdicts before carrying out the sentences.

Taking a stand

On March 10, Wang publicly expressed her attitude in an article entitled “Rationality and Tolerance: a moratorium on death penalty executions” on the web site of the Ministry of Justice. In her article, Wang said, as Taiwan keeps pace with the world with its economic and trade achievements, she hopes the island will also be a leader on this issue in Asia, showing tolerance rather than revenge and letting rationality win over fear. In the near future, “we can proudly announce no more capital punishment on this beautiful island.” Furthermore, the existence of the death penalty has not been shown to reduce criminal acts.

Wang told the media that she would not sign any execution orders for the current inmates on death row during her tenure. She received the backing of local supporters such as the Taiwan Alliance to End the Death Penalty, and international advocates like actress Susan Sarandon. The London-based Amnesty International has also backed Wang, and its interim Secretary General Claudio Cordone urged Taiwan to set an example for Asia by doing away with the death penalty and canceling pending sentences.

In justifying her decision, she said “the government can’t take the initiative in killing. As the justice minister, I really can’t do it.” Taiwan has to think about this issue in a more reasonable way. It is very easy to kill, but society needs to ponder the reason behind the criminals’ actions, she pointed out. Why not give them a chance to repent? It has been a deeply rooted idea for thousands of years that killers must die. It is not easy to change. It takes time, Wang stressed.

Counter to popular opinion

According to polls conducted by the United Daily News, only 12 percent of Taiwanese respondents support Wang while 74 percent are opposed to the abolition of the death penalty, and 42 percent felt Wang should step down.

Since the justice minister must authorize all executions, Wang’s speech resulted in public protests from families of murder victims, such as Taiwanese actress Pai Ping-ping, whose teenage daughter was tortured and killed by kidnappers in 1997.

Pai blamed Wang for giving mercy to the wrong people. She feels sympathy should be shown not to the 44 criminals who have been sentenced to death by the court, adding that they killed others first and the Ministry of Justice is authorized by the constitution to enforce capital punishment. Legislator Huang Chao-shun also criticized Wang for her stance, saying it violated the dictates of her position.

The Liberty Times reported that Ho Hai-hsin, whose daughter was murdered in 2002, disagreed with Wang’s arguments. He said it is not fair for the Taiwanese people to pay for the living expenses of criminals sentenced to death. As a retired elementary teacher, Ho said he has taught students for 37 years to abide by the law. Now the government takes the lead in violating the law.

In a letter published in the United Daily News, Lu Chin-te, whose teenage son was murdered by kidnappers in 1987, said Wang should run for a legislative position and pass a law to abolish the death penalty. She is not qualified to be a justice minister. She is like a soldier who refuses to shoot an enemy, a traffic policeman who declines to issue speeding tickets, or a tax officer who does not hand out tax bills. Lu said there are 5.4 billion people in countries that maintain capital punishment. This means a majority of people worldwide accepts the death penalty.

Some premise for abolishing the death penalty

Taiwan’s news media have expressed differing views on this issue. In offering some support for Wang, the Taipei-based China Times said in an editorial that the legislators approved the law to implement two covenants of the Universal Declaration of Human Rights, and stipulated that Taiwan has to amend its current laws before December 10, 2012 for implementation. Therefore, Taiwan’s death penalty policy will need to be changed.

According to the paper, there are two regulations regarding the death penalty in the declaration: 1) The right for death row inmates to appeal for lesser punishment – Taiwan still lacks the legal procedure for reducing the punishment in individual cases, and 2) Any nation that supports the Universal Declaration of Human Rights but has not abolished the death penalty cannot prevent or defer the efforts to scrap capital punishment, and its justice ministry cannot refuse the deferment of executions. This shows Wang does have a legal foundation behind her argument.

No timetable for implementing the executions

President Ma ying-jeou’s office issued a statement saying that as a country ruled by law, there must be legal grounds to commute the executions of those who have been sentenced to death. If no such legal grounds exist, then the Ministry of Justice should handle the executions accordingly.

During his tenure as justice minister (1993-1996), the president said that the general public supported the penalty by 74 percent and very little has changed. After 15 years, about 72 percent still support the death penalty. While serving in that office, he signed orders to execute over 70 people. President Ma did emphasize that the United Nations has passed a resolution on a global deferment of the death penalty, but the resolution is different from a treaty because it is not binding. Still, he noted, Taiwan must not remain ignorant of the resolution given its desire to be involved in the international community.

Tseng, the new justice minister, has promised to make sure that the death penalty cases get a final review before the sentences are carried out. Beside the 44 individuals on death row, there are another 77 cases appealing their death penalty sentences. Tseng stressed, if all the legal procedures are completed, and no claims of legal remedies are necessary, he will implement the execution with no set timetable in mind. Taiwan’s last execution was in 2005.

Taiwan films at the San Francisco International Film Festival

2010-04-09T09:10:00.000-07:00

This month, Sylvia Feng, the president and CEO of the Public Television Service (PTS) of Taiwan, will be one of the judges for the New Directors Prize at the 53rd San Francisco International Film Festival (SFIFF). Beside Feng’s participation as a judge, this year’s festival will also feature three films with Taiwan roots.

Feng is well-known in Taiwan’s filmmaking community. She was instrumental in rallying support to pass the Public Television Act in 1997, which set aside government money to promote public broadcasting. In 1999, Feng created Viewpoint, the first and only documentary program in Taiwan. The program has been a pivotal force in the promotion and nurturing of documentary filmmaking on the island. To read more about the films she will be judging or to find out more about the festival, please visit the festival’s website at: http://fest10.sffs.org/.

Yellow Sheep River

One of Taiwan’s entries at the SFIFF is Yellow Sheep River. A beautiful documentary by director Liu Soung. Set in far Western China, the film explores life in a traditional Chinese agricultural society through following the routine of everyday life and the changing seasons. The sameness and the cycles of living are all seen against the backdrop of starkly beautiful and vivid scenes. Audiences will come away wishing for the bucolic beauty and meditative tranquility offered in Yellow Sheep River. To find out more about show times, please visit: http://fest10.sffs.org/films/film_details.php?id=105.The director will be present for Q&A during the festival.

Empire of Silver

Also showing at the festival is Empire of Silver, a collaborative film drawing on talent from Taiwan, Hong Kong and China. Made by Palo Alto-based filmmaker Christina Yao, the movie is an epic love story-family drama centering on a powerful banking family during the waning years of the Qing Dynasty in the late 19th century. To find out more about show times, please visit: http://fest10.sffs.org/films/film_details.php?id=22.

Sleeping with Her

Taiwan director Wen Chih-yi also has a short film in this year’s Golden Gate Awards competition for documentary shorts. Wen’s film focuses on an infirm Taiwanese woman who is lovingly cared for by an Indonesian woman. The short focuses on her caregiver’s stoic endurance of her lonely life and the verbal onslaught from her employer.

This year’s films will be showing from April 23 to May 6 in four locations in San Francisco and Berkeley.

Arvin Chen's Au Revoir Taipei opens to sell-out audience at SF premiere

2010-04-09T09:08:00.000-07:00

On March 18, Bay-Area filmmaker Arvin Chen premiered Au Revoir Taipei to a sell-out crowd at the Asian American Film Festival in San Francisco. Selected as the closing movie at the 28th festival, it also opened at the San Jose portion of the festival the following day. Since opening in Taiwan on April 2, the film has gained an instant fan base there. After seeing the movie, Taipei’s mayor Hau Lung-bin, praised Chen for doing such a wonderful job of promoting the local lifestyle.

Set in Taipei, Au Revoir Taipei is a campy romance combining elements of film noir, classical musical and Taiwanese gangster films. The movie highlights Taipei’s vibrant nightlife as a lovesick boy and a bookstore clerk search for love in different pockets of the city.

According to Chi-hui Yang, the festival’s director, Chen first impressed festival audiences in 2006 with his short film Mei. Ever since, Yang has looked forward to screening another work by Chen. Growing up in Foster City, the Bay Area native had many family and friends in the San Francisco audience. Taiwan Insights caught up with Chen and asked him about the making of Au Revoir Taipei.

An obvious first question was to learn how Chen became fluent enough to write a full-length script in Mandarin, not to mention the sprinkling of Taiwanese. Chen explained, as a budding filmmaker, he studied with legendary filmmaker Edward Yang in Taiwan and also visited the island throughout his childhood. Even though fluent in Mandarin, Chen still wishes he was more advanced. However, when he begins writing a script, he first pens it entirely in English. “The English script serves as a template and then we fine-tune it,” he said. After he is satisfied with the English script, Chen will then translate it into Mandarin or Taiwanese, depending on which might have the greater impact. “Often I talk to my assistant director and actors and ask, ‘How would you say it? Which would have more meaning, Taiwanese or Mandarin?’”

This year, Au Revoir Taipei was selected as the Best Asian Film at the Berlin International Film Festival. With this honor to his name, Chen is now eligible for the NT$1.5 million (US$47,000) award from Taiwan’s Government Information Office (GIO), a reward given by the Taiwan government to promote the island's films and filmmakers. The money will help Chen as he begins working on his second movie, a romantic comedy set in the 1980s at a time when Taiwan’s trading companies were experiencing rapid growth. Much of the dialogue will be in English to reflect the many foreign buyers coming to Taiwan at that time.

After the San Francisco premiere, Chen introduced some of his film crew. They were a diverse bunch, made up of Germans, Americans and Taiwanese. According to Chen, everyone felt really at home in Taiwan, which is unique for an Asian film setting. Chen attributes this to Taiwan’s openness and the fact that the country “doesn’t have a history of conservatism, so it’s a very open culture, compared to the rest of Asia. It doesn’t have a lot of baggage.”

When asked about the most difficult part of making the movie, Chen said it was the fundraising and the marketing, in essence, the beginning and the end. Both issues touched on the question of how well the film was likely to sell. Shooting and making the film, was not surprisingly, the most fun part, he said. Although an exhausting experience, Chen now says he is better prepared, so it should not be as difficult the next time around.

Nowadays, Chen’s time is spent mostly in Taipei, where he is teaching and working on his next film. Currently, Au Revoir Taipei has a Facebook fan base of more than 14,338 after opening a week ago.

Former premier addresses Monte Jade’s 20th anniversary conference

2010-04-09T09:07:00.000-07:00

On March 27, Monte Jade Science and Technology (West Coast) held it 20th anniversary conference in Santa Clara, California. Taiwan’s former Premier, Liu Chao-shiuan, delivered an optimistic keynote speech on “How Taiwan Faced the Challenges after the Global Financial Tsunami.” The conference included several industry forums and panel discussions on the emerging mobile ecosystem, clean tech opportunities, and the evolution of computers. The newly elected chairperson, Lilly Chung, also officially took over the chairpersonship from Hu Yaw-wen.

Giving his keynote speech, Liu told the audience that, “Taiwan's unemployment rate had dropped to 5.68 percent from 6.13 percent over the past five months. Its price index is now the lowest in Asia. The pain index is the lowest in six years. A large number of international funds have entered Taiwan." Liu is a Global Monte Jade Honorable Chairman Emeritus and the Chairman of Taiwan’s National Culture Association.

Liu said cross-strait relations during his tenure reached the highest point of the past fifteen or twenty years. Communication and exchanges between the peoples, goods, and financial dealings of the two sides were closer than before, he said. Some economists estimate that Chinese visitors to Taiwan have contributed half a percentage point to Taiwan's GDP.

In the area of energy saving and carbon reduction, Liu’s policy achieved an annual energy saving about equal to the consumption of Tainan County or 65 percent of Taipei City. In the wake of the global financial crisis, the implementation of the "three support policies," meaning the government’s support for banks, enabling them to support the labor force, not only helped Taiwan weather the financial crisis, but also to retain 40,000-60,000 jobs.

Liu mentioned in particular the distribution of food coupons to spur domestic spending in the early stages of the financial storm. At the time, a lot of people thought it unfeasible. But the coupons were not given out for purely economic reasons, but also for social reasons. Every Lunar New Year, the suicide rate in Taiwan rises, but in 2009 it fell, because people had money to spend. Unemployment rates have dropped over the past five months, proving that Taiwan’s economy is back on track.

With regard to the coming challenges, Liu said 70 percent of Taiwan’s economy depends on exports with a heavy focus on IT and the telecommunications industries. When an imbalance in international supply and demand occurred, Taiwan suffered greatly. Taiwan’s exports dropped 46 percent in just one quarter. To cope with this, Liu’s administration tried to find a way to restructure the nation’s industries. With the help of experts and scholars, Liu launched the "six new industries" program with a focus on biotechnology, healthcare, agriculture, energy, tourism, and the cultural industries, in a bid to revitalize Taiwan’s economy.

Monte Jade Science and Technology Association (West Coast) was established in 1989 by a group of Chinese-American executives in Silicon Valley. Their initial goal was to bring together high-tech experts from around the Bay Area and across the Pacific. After a gradual expansion, there are now 16 chapters worldwide.

Last month’s conference was attended by over 1,000 business, engineering, and other professionals.

Negotiations on FTA-like agreement with China closes in Taipei

2010-04-09T09:06:00.000-07:00

The second round of official negotiations on the ECFA (Economic Cooperation Framework Agreement), a FTA-like agreement, between Taipei and Beijing drew to a close on April 1. After a day and a half of discussions in Taoyuan, not far from Taipei, China agreed not to export agricultural products or allow laborers to the island. The two sides will also work to ensure that Taiwan’s less competitive manufacturing and agricultural sectors are not adversely affected by the signing of the ECFA, according to sources familiar with the issues.

When finalizing their early harvest lists, both sides took into consideration the other’s concerns and pressing needs, and selected items that were easier to reach a consensus on, according to the Commercial Times. Petrochemicals, textiles, machinery, automobile manufacturing, components and parts, among others, were suggested by Taiwan to be included in the final lists.

Huang Chih-peng, Taiwan’s chief negotiator and director-general of the Ministry of Economic Affairs Bureau of Foreign Trade, pointed out that Taipei and Beijing have reached a high degree of consensus on the items to be included, though the final details will still require some fine-tuning. Despite this, he said, “the time is not ripe to make an official announcement.” Several items on Taiwan’s proposed list include sectors that the mainland regards as important or key developing industries, and towards which they currently feel they are in a disadvantageous position.

In considering the opposition party’s objections on the ECFA, President Ma Ying-jeou and the Democratic Progressive Party Chairwoman Tsai Ing-wen have agreed to face off in a debate on April 25. “Through the debate, the government will help the public better understand the planned ECFA,” Presidential Office spokesman Lo Chih-chiang stated. For her part, Tsai said, “The ruling and opposition parties each have their own responsibilities” regarding controversial ECFA issues. The DPP has voiced strong opposition to the inking of such a pact.

During a videoconference hosted by the Fairbank Center for Chinese Studies at Harvard University on April 6, President Ma delivered a speech in which he reiterated the necessity of signing an ECFA with China, emphasizing that the agreement would spearhead Taiwan’s return to economic integration in the Asian-Pacific region and enhance the island’s competitive edge in the global market.

Taiwan’s highly acclaimed healthcare system confronts financial challenges

2010-04-09T09:05:00.000-07:00

Universal healthcare has been a contentious issue in both Taiwan and the United States. Whereas the US Congress recently passed the healthcare reform bill after 14 months of debate, the rising cost of Taiwan’s universal healthcare has also caused major disagreements in Taiwan. The problem came to a head when Taiwan’s health minister Yaung Chih-laing, who insisted on raising the premiums, sought to resign over this issue.

NHI covers almost all citizens

Taiwan’s universal healthcare system, known as the National Health Insurance (NHI), is a single-payer compulsory social insurance plan administered by the government that centralizes the disbursement of healthcare funds. Launched in 1995, the NHI offers comprehensive healthcare to every person in Taiwan regardless of income. Currently covering 99 percent of the legal local residents, with citizens living overseas and foreign nationals accounting for the remaining one percent, NHI is mainly financed through insurers’ premiums based on the payroll tax and direct government funding.

US Nobel Laureate Paul Krugman has spoken highly of Taiwan’s health insurance system. It has improved Taiwan’s general life expectancy and insurers’ health as well. However, the NHI faces the growing challenge of balancing its expenditure, which is rising at 5.5 percent, with revenues averaging 4.7 percent.

Hike essential to NHI

Yaung’s original proposal called for hiking the premium from 4.55 percent to 5.09 percent, which would impact 41 percent of Taiwanese insurers, and generate an extra premium income of NT$45 billion (US$1.4 billion) a year. This would be enough to offset much of the existing deficit of NT$58.8 billion (US$1.84 billion) accumulated by the end of 2009. Without the rate hike, the NHI debts will likely reach NT$101.5 billion (US$3.17 billion) by the end of 2010.

This is one solution that both the ruling Kuomintang (KMT) and the opposition Democratic Progressive Party are cautious of supporting for fear of the backlash come election time. Instead, the Executive Yuan favored a differential premium rate set to people’s income level, that would exempt 75 percent of the local people from the premium hike and have less of an election impact for the KMT.

Yaung’s frustration at the government for not addressing the problem led him to submit his resignation. He asserted, politicians catered too much to winning votes rather than seeing to needed reform, long term policy or national development.

Temporary measures

With President Ma Ying-jeou’s mediation, the Executive Yuan finally came up with a resolution to increase the premium to 5.17 percent effective April 1. This 0.62 percent hike, higher than the one Yaung originally proposed, marked the second rate hike since NHI’s inception. It would add NT$52.2 billion (US$1.65 billion) in annual premiums to help keep the NHI financially balanced for about two more years. This would also leave 78 percent of the insured unaffected due to the 100 percent government subsidy to people with monthly insurance payments of NT$40,100 (US$1,250) or lower.

In the announcement of the resolution, the Executive Yaun said the subsidy is a temporary measure only in place until the reform bill, the so-called second generation NHI, is instituted. With the increase in premiums, Yaung agreed to continue in his ministerial post to promote the second generation of the NHI passage in the Legislature and to carry out its implementation.

Still trouble ahead

Even with the hike, not all of NHI’s problems will be solved. According to the Taiwanese Association of Social Welfare, NHI expenditures have been getting bigger and bigger due to 1) an aging population and the increase of severe wounds and diseases, 2) high human costs characteristic of the medical health industry, and 3) new technology and drug development pushing up the costs.

In its article in the Taipei-based China Times, the association noted that Taiwan’s second generation NHI needs to include the following key points: 1) enlarging the premium base from the current payroll to include all income sources, 2) automatic adjustment of both expenditures and revenues to avoid a big deficit and only a minor adjustment of premiums every year, 3) changing the premium calculation from individual’s payroll to the total income of local households.

In the short term, the second-generation NHI will generate more income from the premium rate hike and improve the financial health of NHI. In the meantime, the NHI will cross over to achieve a more equitable redistribution of wealth from high-income classes to low-income classes. In the long term, it will establish better system integration between the NHI disbursement payments to service providers.

Even though the much-anticipated second generation health reform bill is not a panacea for all NHI issues, it is a must for Taiwan’s health reform, which needs not just a minor adjustment but a structural change.

Taiwan’s minister speaks at int’l healthcare meeting

2010-04-09T09:04:00.000-07:00

In speaking to attendees at the Healthcare in Asia 2010 Forum, Taiwan’s Health Minister Yaung Chih-liang said there are four kinds of healthcare system in the world, each one with its merits and disadvantages. The March 30th meeting of Asian healthcare leaders took place in Singapore and was sponsored by the Economist Intelligence Unit (EIU).

The Central News Agency reported that Yaung, who is promoting the second generation of healthcare insurance in Taiwan, was invited to speak at a closed session of the forum to discuss the problems associated with health insurance that Asian governments are facing. His remarks struck a chord with the attending representatives who wanted to know more about Taiwan’s successful experience.

Four types of healthcare systems

Yaung said among the four healthcare systems are 1) a national health service (NHS), adopted in the United Kingdom and the countries of the British Commonwealth, which allocates a certain percentage of tax revenues as a national health insurance system; 2) the social insurance system, such as the one in Taiwan, 3) a mix of patients paying their fees and private insurance systems; and 4) a combination of the above-mentioned three systems.

In describing the first example, he likened it to the UK’s NHS system. It is a type of single-payer public funded healthcare system financed through taxation from the government budget. Everyone receives the same level of coverage regardless of their ability to pay, their level of taxation, or risk factors. It is a very fair system and without moral problems, but the drawback is that as the health insurance budget is fixed, hospitals and doctors get fixed incomes. So there is no incentive for them to see more patients, and waiting lists can get very long, resulting in the government’s inability to meet patient demands.

With regard to the third type, Yaung said, this system is based on patients paying their own fees, but people with low incomes cannot afford to do so and the government does not want to take care of their medical needs either. Developed countries that have a private insurance system, such as in the US, end up creating a big medical gap between the rich and the poor.

Taiwan’s social insurance system

Yaung said that Taiwan’s social insurance system is based on the philosophy that government is responsible for the people's health, and it takes into account the healthcare of the low-income class, which is why Taiwan adopted this system.

However, a shortcoming of this system is that it gives rise to “civic failure,” since the people have the government's healthcare; they are not as pro-active in taking care of themselves. This wastes medical resources, resulting in rising healthcare costs. But Yaung emphasized that Taiwan's healthcare system has a 70-plus percent satisfaction rating, meaning that the system clearly has its merits.

Not a one-size-fits-all model

Asked to comment on Singapore's 3M structure (Medisave, Medishield and Medifund), Yaung said that Singapore's system is basically one of compulsory saving accounts, that is, to take money from the people, equivalent to the concept of patients paying their responsibility without the government’s help. This system may not work in many other countries, because the system forces the people to maintain their own healthcare savings.

Those people above the poverty line, but not qualifying for social benefits, still struggle to meet the necessary healthcare costs. They have to dedicate part of their already low salaries toward health savings, which makes their lives more difficult. This is in violation of the spirit of social welfare and social care.

Many participants, including representatives of Indonesia and Malaysia, agreed that the Singaporean system works in Singapore, but not necessarily in other countries. China once tried that system, but it failed. According to Central News Agency, representatives of Indonesia, Malaysia, and Australia expressed a wish to learn from Taiwan's national healthcare system.

“Shell-less Snails” protest Taipei’s rising house prices

2010-04-09T09:03:00.000-07:00

While house prices continue to skyrocket in and around metropolitan Taipei, an alliance made up of mostly working-class people, known as the Shell-less Snail Movement, have threatened to stage a big demonstration unless the government takes effective steps to halt rising real estate prices by the end of this year. Leaders of the alliance held a press conference on March 26th on a former government owned lot recently sold to private developers for NT$780 million (US$24.3 million).

The group is known for organizing hundreds of thousands of people in spending a night on Taipei’s busy Zhongxiao East Road twenty years ago.They accused large developers of manipulating house prices and urged the government to ban speculation, in essence, to prevent real estate property developers from buying land and leaving it idle before reselling it. The alliance feels that state-owned land should not be sold, but maintained for public use. Furthermore, the groups want the government to implement stricter credit controls and clamp down on property tax evasion by investors.

Why the rise?

Except for dips in 2003 during the SARS outbreak, housing prices have continued to skyrocket in Taipei. Even when the subprime mortgage crisis burst the American housing bubble, Taipei’s housing prices just dropped a little before rising again. With declining birth rates, more people moving to China for business and work, additional housing in the suburbs, plus a higher unemployment rate after the economic downtown, there should be no reason for house prices to steadily rise.

Some have attributed the rise to Taiwanese businessmen thinking Taipei’s housing prices are still reasonably inexpensive compared to those in Hong Kong, Shanghai and Beijing. Others might be optimistically, thinking Chinese investors will come to invest in the property market in Taipei.

According to Taipei-based China Times, the average price of a house in Taipei is NT$420,000 (US$13,100) per ping (about 35.5 square feet), compared to NT$1.63 million (US$50,780) per ping in Hong Kong, NT$1.46 million (US$45,500) in Japan, and NT$1.2 million (US$37,380) in Singapore. Compared in this way, home prices in Taipei are not expensive.

Though, according to the Interior Ministry, house prices in Australia are 6.8 times the average household income, 5.3 times in Japan, and 5.2 times in Britain. By contrast, it is seven times in the five metropolitan areas of Taiwan, and 9.06 times in Taipei City. Calculated this way, the average home price in Taipei is indeed more expansive than in many developed countries, China Times reported.

Other factors spurring the market

According to Wealth Monthly, contributing factors could also include favorable government measures to stimulate the housing market to offset the global financial downturn, the warming of cross-strait relations, the anticipation of “Chinese investors coming to town” by both the government and the private sector, and the lowering of estate taxes to 10 percent – all incentives attracting overseas money into Taipei’s real estate market.

“Taiwan’s low interest rate is the culprit in building up the housing bubble this time,” said former Finance Minister Lin Chuan. Even the insurance industry is attracted by the low interest and is investing in the housing market. Another reason attracting overseas money is the low foreign exchange rate of Taiwan dollars which have been kept at US$1 to NT$32, said the magazine.

Whatever the reasons for the rise, the government has come under increased pressure from groups like the Shell-less Snail. In response, the Ma administration has halted the sale of government-owned land and is building more low cost public housing near mass rapid transit stations in the suburbs of Taipei. The government has also tightened credit procedures with the Central Bank and the Financial Supervisory Commission, asking lenders to provide more details of their mortgage operations and real estate investments.

But, upon announcing a halt of government-owned land sales, the stock price of private developers shot up due to the decrease in the supply of land.

More government control of the market is urged

Chang Chin-oh, a land policy professor at National Chengchi University, said this wave of housing price distortion comes from the demand side. Therefore the government’s policies trying to affect the housing market from the supply side by halting land sales and building more low cost public housings is useless. The effective way should come from the financial side by tightening mortgage operations.

Lin Cho-yu, a colleague of Professor Chang, blames the government’s housing policy for not being publicly directed, but aimed towards stimulating the economy and stabilizing the financial markets. From the perspective of providing resident rights to the general public, Chang, Lin and others all agree that the government should provide housing to the public “for lease, not sale.”

They believe the government should have more foresight in urban planning and implementation of housing policy. For example, if the government had a better mass rapid transportation system and balanced development, people wouldn’t have to live in the crowded city and could spread to the metropolitan suburbs. Thus the issue of rising housing prices in a centralized area would not be such a problem.

The Shell-less Snails have urged voters to examine the campaign promises of candidates who are running for the Taipei Metropolitan mayor and New Taipei Metropolitan magistrate at end of the year, and to take note of their housing policies.

Taiwan chef wins 2010 Master Baker in France

2010-04-09T09:02:00.000-07:00

On March 10, Taiwanese pastry chef Wu Pao-chun won the title of Master de la Boulangerie in the bread category at the Europain and Intersuc (aka the World Cup of Baking). According to the Central News Agency, Wu was able to beat 24 candidates from 17 nations in the competition. Within 8 hours, Wu was required to bake breads such as baguettes, sandwich loaves and a specialty bread representative of Taiwan. Among the ingredients in Wu’s specialty bread were Taiwanese millet wine, dried lichee and organic roses.

Rising to the challenge

The competitors were assured their place this year by being a part of the winning team in the 2008 competition. That year, Taiwan competed for the first time and won a silver medal at the World Cup of Baking. It was a tremendously difficult competition. Six weeks before, the rules went out asking the bakers to make 11 kinds of baguettes in 8 hours. In total, that meant 251 baguettes – something that usually takes 12 hours to complete. The Taiwan team toiled away for the entire 8 hours without water or bathroom breaks and became the first team to finish. Out of the 12 teams, only 6 met the deadline.

Launched in 1992 by Christian Vabret, the World Cup of Baking was Vebret’s idea to revive the art of baking. Considered one of France's top bakers and a great promoter of the industry, he wanted to reverse the decline of French baking as more small bakeries fell into the hands of big business. The event is now part international trade show and part competition.

Bakers compete in individual categories and also as national teams. The French teams dominated the competition for years, but in the last decade or so, they have not done as well. The United States won in 1999 and 2005. Japan won in 2002. In 2008, the French team finally took back the title after a 12-year drought. This year’s Master for Artistic Creation went to Francois Brandt of the Netherlands and the Master in the Viennoiserie category (yeasted pastry) was won by Frenchman Thomas Planchot.

The pride of Taiwan

Wu’s win was unique coming from a country that has little artisan-style breads. Heavily influenced by Japan, the Taiwanese people enjoy pantry-type breads which use heavily processed flour to make softer and richer bread. However, Wu’s specialty bread really impressed the judges.

Wu has spent years perfecting his specialty bread. First, he made sure his special dough could withstand the temperature changes he might face in the competition, than he began experimenting with the perfect blend of lichee, rose and wine. Along the way, he ate a lot of failures. And in the end, it was his “multitude of flavours” that he had spent a lot of time devising that won over the jury and the public.

In a Europain press release, Wu said, "During the competition, the hardest thing was the isolation as I didn't speak the language: I couldn't share my feelings with the other candidates. Luckily, the members of the Taipei Representative Office in France gave me active and enthusiastic support over the five days and I saw the pride in their eyes when the results were announced: a very fine gift…"

At the award presentation for the 2010 Master Baker, Taiwan’s representative to France, Director-General Lu Ching-long jokingly told the audience, “If you want to enjoy good French bread, come to Taiwan!”

Wu currently works in a bakery in Taipei and plans to open his own bakery in four to five months.

Cross-strait educational exchanges increase in a globalized world

2010-04-07T09:01:00.000-07:00

According to the Global View monthly, the international community estimates that by 2020 China will have more than a dozen universities ranked among the world's top one hundred. And, since China is the largest emerging market in the world, many Taiwanese college students are heading to Chinese colleges to get a good education in preparation for their future career.

According to the Chinese government, there are 6,755 Taiwanese students studying at 187 universities in China. This accounts for 2.2 percent of the total students who registered to take Taiwan’s annual university examination, representing 22 out of every 1,000 high school graduates in Taiwan.

Main reasons to study in China

In the magazine’s questionnaire, those who studied in Chinese schools are not attracted by academic performance, but rather, by the desire to further understand China and to build a network for their future development in China. As an example, 51.8 percent wanted to have the experience of living and learning in China. The students expressed a desire to build personal connections that would help them enter and understand China’s markets.

In planning a future career, Taiwanese students are more flexible. After graduation, more than 25 percent preferred to work in China, 17.3 percent wanted to work in Taiwan; another 17.3 percent would continue to study in China, while 10.8 percent planned to pursue studies in other countries. From this part of the survey, Global View found about a quarter of the Taiwanese students considered studying in China as pre-training for their future career.

For Chinese students studying in Taiwan, 88.7 percent come hoping to experience life on the island. While, 37.2 percent believe that Taiwan offers high quality curriculums and teachers. The percentage of Chinese students looking to build personal connections and pursue further study and work in Taiwan are much fewer. In Commonwealth magazine’s report of across-strait student exchanges, they interviewed Angel He, the first Taiwanese student to enter a mainland university based on her Taiwanese scholastic exam scores. Since 2009, the Chinese educational system has recognized these test scores. Instead of going to National Taiwan University (NTU), she decided to enter the eight-year doctoral program in the clinical medicine department of Shanghai’s Fudan University, joining the 6 million new students from within China.

He is not sure that her decision was the right one, so she still maintains her registration at NTU. She knows it is adventurous to go to Fudan University, but just in case, she keeps the option of withdrawing open.

Competition is the biggest pressure

In Global View’s interviews with about 20 Taiwanese students studying in China, they also found it more competitive. One student said, “The days of being able to just grab an easy diploma in China are gone. The Chinese are all smart elites under the one-child policy. They all work hard. If you are absentminded for just a second, you’ll find yourself falling far behind them. Taiwanese have to develop stronger perseverance, broader views, earn double degrees, and even win more connections on campus.”

In the survey, what bothers Taiwanese students most in China was not just the difference in culture and ideology, but also the high requirements for admission to universities and the Chinese students’ competitiveness. These are the biggest pressures for the young Taiwanese.

According to the Taipei-based China Times, Wang Dan, one of the former Chinese pro-democracy student leaders at the Tiananmen Square protests in 1989 and a former visiting scholar at National Chengchi University in Taiwan, had this observation. "In the mainland, the only way to get out of poverty or get a good job for people in rural or remote areas is to study at college. But in the relatively well-off Taiwan, the incentive for higher education is far less strong than in the mainland. Thus, Taiwanese students do not study as hard as those from the mainland.”

Wang Dan said that the democratization of China lags far behind that of Taiwan. For Chinese students, political issues are still a taboo. They have much less knowledge in this regard than that of the Taiwanese. Chinese students who come to study in Taiwan will inevitably face an ideological shock.

He added, “Taiwan is a very modern society, and young Taiwanese students living in this affluent environment are simpler. They are more humane, sympathetic, and lack the psychological guard against others, while Chinese students, relatively speaking, are more serious and tend to be more concerned about their daily survival and reality issues. Due to intense competition, the Chinese students do not easily develop interpersonal relationships, but rather a sense of self-protection, which is not apparently found in the Taiwanese students."

A sharp rise in numbers

Between 1985 and 2000, only 3,759 Taiwanese studied in China. In the seven years that followed, that number rose to more than 11,000, with half studying Chinese medicine. Aside from those in China studying for formal degrees, another 10,000 university students have gone there for short-term exchange programs in the past five years.

There are currently 233 Taiwanese students studying at Peking University alone, six times the number five years ago. This phenomenon, part of the overall trend toward the convergence of the Greater China education market, has gradually come to influence Taiwan's nearly 3 million high school, university and graduate students.

Studying in China motivated by global view

Taiwanese parents have a global view that are more supportive of their children studying aboard. When asked, 36 percent of Taiwanese parents have plans for their children to study abroad, and 1.5 percent have children already studying overseas. Comparatively, 12.8 percent of Chinese parents have made such plans, with only 0.7 percent already with children studying abroad.

Lai Yu-rou, a 22-year-old Taiwanese graduate student of finance, spent two months as a summer intern in the Shanghai branch of the China-based Bank of Communications. Lai is unlike many of the first wave of Taiwanese students in China, whose parents own or work for Taiwanese enterprises there. Lai's parents are simply teachers who encouraged her to get experience in China. Although she appreciates Taiwan's free and diverse environment, she has seemingly come to accept the nomadic fate of her generation. She told Commonwealth, "If there are no good opportunities in Taiwan, I could go to Beijing and Shanghai in the future."

At the same time, most parents still do not want their children to study at a Chinese university, with 70 percent concerned about public security, 59 percent worried about their children adapting to life there, and 38 percent due to the financial burden.

Further opening of Taiwan's schools in June

But does gaining experience in China really help one's career development? The Commonwealth says the answer may be yes. The number of foreign enterprises in China, for instance, has grown from 420,000 in 2002 to 700,000 today, and they all need talented people who understand China.

Jack J. T. Huang, partner-in-charge of Jones Day law firm in Taipei, said the experience in China is important, but not an absolute necessity. Take mergers and acquisitions as examples, there are 500 cases of over US$100 million in China, while there are only 10 cases in Taiwan There are several hundred law firms and venture capitalists and bankers struggling to compete for these 500 in China, but in Taiwan, if you are one of the best lawyers, you may easily take three out of the ten. So it is your decision to weigh in the success whether to fight with killer whales in the Pacific or just catch fish in the Taiwan Strait.

Bill Lin is the general manager of the online shopping website PayEasy, a subsidiary of Taishin Financial Holding Co. that expanded abroad in 2009 and is planning to set up branches in Shanghai and Beijing this year. Lin himself has two school-age daughters, in ninth and sixth grade, and because of his belief that exposure to China could be beneficial to their future, he has purposefully taken them traveling in China over their summer and winter breaks for the past two years.

"I will encourage my daughters to stay in Taiwan until they graduate from high school, attend college in China, get a graduate degree in the United States, and then return to Asia, and especially China, to develop." Lin says. "Taiwan's small island-market has the benefit of being sophisticated, but China is a seductive high-risk, high-reward market."

With a more globalized economy, universities around the world have entered a make-or-break battle – a brand war for funding, resources and interdisciplinary and international alliances. No longer just competing for students locally, they are also competing for international students.

Although there have been thousands of Chinese exchange students on Taiwan’s campuses, they have normally stayed for less than four months. Starting in June 2010, this will change as Taiwan begins to recognize Chinese qualifications.

Taiwan’s Snack Food

2010-03-11T09:50:00.000-08:00

All countries have foods that are indicative of their culture and taste buds. The Vietnamese have pho for breakfast and dinner, Beijing residents treasure their roast duck, the Japanese prize their high-grade sashimi and the Germans enjoy pig’s knuckles. It might not be everyone’s cup of tea, so-to-speak, but Taiwan’s diverse culinary delights are what make its culture unique.

On a daily basis, Taiwanese people enjoy a wealth of inexpensive and unique snack foods. They include oyster omelets, steamed pork buns, spicy beef soup noodles, pearl milk tea, shaved ice, soup dumplings, Wan Luan pork hocks and stinky tofu. Found readily in any marketplace or at neighborhood food stalls, these inexpensive eats offer a truly Taiwanese experience.

The next time your visit or revisit Taiwan, be sure to sample some of Taiwan’s wide variety of delicious delicacies.

Night markets in Taiwan
“Treasure Islands” of Taiwanese snacks. Photo: Hsu Yu-tsai

Oyster Omelets
Oysters are mixed with potato and corn starch, combined with eggs, vegetables before being pan fried. They are usually served with a dribble of sweet and sour sauce. Photo: Chen Chien-yuan

Soup Dumplings (aka, Shanghai Dumplings)
These small steamed buns are filled mostly with seasoned pork. After steaming, they appear semi-translucent with hot broth inside. They are usually eaten with a little wine vinegar. Originally known as a Shanghai dim sum dish, these dumplings are the house specialty at Din Tai Fung Dumpling House in Taipei. The restaurant’s signature dumplings has both locals and tourists forming lines out of the door. Photo: Liu Ching-yao

Beef Noodles

Stewed beef over noodle soup are the ingredients of this basic, but classic dish. Legend has it this originated as a Muslim meal, but others say it was invented by war veterans from Szechwan who escaped to Taiwan with the Nationalist government. It is a favorite of the Taiwanese people. Photo: Chang Chih-chieh

Pearl Milk Tea
Originally developed in central Taiwan, this refreshing sweet cold drink is a mix of black tea, milk and tapioca pearls made from yam flour. Pearl milk tea is now popular with Asian-Americans as well. Photo: Chang Chi-yu

Shaved Ice
A large block of ice is finely shaved to produce a nice pile of fine powder. It is then topped with an assortment of condiments, which may include sweet red beans, sweet pearls, cooked taro, jelly and finished with a swirl of sweetened condensed milk. An all round favorite during Taiwan’s sweltering summer months. Photo: Hsu Juei-chen

Pyramid-shaped Glutinous Rice
Made of glutinous rice mixed with mushrooms, peanuts, egg yolk and pork intricately wrapped in several layers of bamboo leaves and then tied with string before boiling. Traditionally eaten during the Dragon Boat Festival, but now sold throughout the year. Photo: Kuan-chiun

Wan Luan Pork Hocks
The pork hocks are stewed with star anise, cassia twig and other Chinese herbs. Originally developed on a farm in Wan Luan Township in Southern Taiwan. It is now a much loved dish at night markets across Taiwan. Photo: Hu Po-shu

Stinky Tofu
Fermented tofu is fried until it becomes crispy. Normally cut into four small pieces, and then served with sweet and sour pickles. It can be truly stinky and is considered an acquired taste – definitely one for the more adventurous palate. Photo: Lo Ta-chiung

Special thanks to Taiwan's Tourism Bureau for providing the photos.

Study Mandarin and explore Taiwan through scholarships

2010-03-11T09:45:00.000-08:00

Each year, the Ministry of Education offers two types of scholarship for students interested in studying in Taiwan. These scholarships are a great opportunity to explore another culture with the reassuring cushion of a monthly stipend. Students can choose to apply for a long-term certification scholarship, like the Taiwan Scholarship Program or a one-year language program, like the Huayu Enrichment Scholarship (HES). Applications for both scholarship programs are being accepted now for this fall. The deadline is March 31, 2010.

Recently, Taiwan Insights caught up with three of last year’s scholarship recipients and asked them to give some overall impressions of their time in Taiwan.

“Studying Chinese was very humbling”

Before Kerry Seed left for Taiwan, he was a student at the Graduate School of Journalism, University of California at Berkeley. He wanted to learn Chinese with the intention of using it in his work as a reporter. He was in Taipei for five months, studying at National Taiwan Normal University (NTNU). Seed knew very little Chinese before entering his program at the Mandarin Training Center.

“Studying Chinese was very humbling. I felt like I had to work so hard to make even modest gains, but the work was very satisfying.” Besides taking one class per day for two hours, he also studied about four hours per day outside of class. “I really enjoyed my time in Taiwan. The people I met there were very friendly and willing to help me learn. I felt like I had a million teachers.”

One of the things he liked most about the program was his classmates. “My classmates were from all over the world, and meeting them was one of the most enjoyable parts of my stay in Taiwan.”

The most challenging aspect of his time in Taiwan was to manage his studies as well as exploring Taipei. His advice to anyone considering the program is to simply “Do it!!!”

Opportunities to soak up local culture

Emily Rupp swapped the fall semester of her master’s program in Asia Pacific Studies at the University of San Francisco to study at National Taiwan Normal University. She had prepared for her trip by taking a summer intensive Mandarin Chinese class at the University of California at Berkeley just before her departure. Like Seed, she was in class for ten hours a week at the Mandarin Training Center.

When asked about her experience there, she mentioned how friendly she found the Taiwanese people. After her stay in Taiwan, she visited other parts of Asia and this confirmed her feelings that the people in Taiwan were “so much nicer than anywhere else in Asia.” She found “a lot of kindness.” In fact, she was overwhelmed to have perfect strangers invite her to their homes and go “all-out” with preparing a meal for her.

One thing that Rupp especially liked was Taiwan’s Tea Culture. “If you meet your friends here, you would meet for drinks, but the kids there hang out all night drinking tea…” She likened tea to the “social glue” in Taiwan, a drink minus the guilt normally associated with alcohol. She enjoyed going to the tea stations and getting a huge tea for merely a dollar.

She also found the food to be amazing and affordable, with a lot of vegetable and organic restaurants everywhere. One can get a completely healthy meal for US$3-4.

For anyone considering studying in Taipei, Rupp cautioned overseas students when renting a room. “Don’t pay more than NT$8,000 (around US$250) for a room.” In the Bay Area, US$600 a month might be reasonable, but it is way more than you need to pay in Taiwan.

Although the scholarship was sufficient to live on and pay the tuition, she advised students studying overseas to ask when their first scholarship check will arrive. Regardless, be sure to take extra cash. If the first stipend does not arrive right away, you might need a month or two of living expense and tuition money. Seed also suggested students take extra money.

Study Mandarin at Taiwan’s top universities

In June 2009, graduate student Zayar Ohn took a three-month summer break from his studies to enroll in Taiwan’s top-ranked university, National Taiwan University (NTU). As a former journalist in Burma, he arrived in America as a refugee and is now a graduate student at the Center for the Pacific Rim at the University of San Francisco. While in Taiwan, he enrolled in the NTU’s Language Center’s intensive Mandarin Chinese course, meeting for 15 hours a week. He found the class size to be perfect and his intensive language class not as grueling as he had expected.

While studying in Taipei, he lived in Xindian, a suburb of Taipei City. He got to know the public transportation well. In fact, the “fantastic transportation system” was one of his favorable impressions. “Buses and the subway are really clean.” He was less fond of the air pollution.

One thing that stood out for Ohn was Taiwanese politeness. “They did not yell at each other when they spoke. They spoke politely. People were nice, welcoming and considerate, when not driving a motor cycle on the streets.” Upon his return to San Francisco, he has a renewed appreciation of his pedestrian rights.

While in Taiwan, Ohn fell in love with Taiwanese Oolong tea. “I went to many tea houses. The only thing I bought for my home was tea.” He predicts he will not run out of tea for another year. “Brewing tea and making tea is an art in Taiwan.”

Taiwan scholarships now available

The scholarship program that Ohn, Rupp and Seed participated in was similar to the HES program. Whereas the program before allowed a minimum stay of three months, the minimum stay is now one year. The program is especially ideal for students looking to study Mandarin and to participate in cross-cultural exchanges. The monthly stipend is NT$25,000 (about US$770). Applicants wishing to apply to this program can visit find out more information at: http://www.sfmoe.org/asp_e/study_tw/scholar-2.htm.

Another scholarship is the Taiwan Scholarship Program. It is intended for students who wish to undertake a degree program in Taiwan. Although students need not be accepted into an accredited university or college in Taiwan when applying, the applicant MUST BE accepted to an accredited institution to be awarded the scholarship.

The program offers four different scholarships, of varying lengths and monthly stipends. The monthly stipends awarded range from NT$25,000 (about US$770) to NT$30,000 (about US$900). Applicants can apply for the Undergraduate, Master’s, Doctoral or the Pre-degree Mandarin Language Enrichment Program (LEP) Scholarships.

The LEP scholarship is a one-year scholarship intended for the recipient to study Mandarin Chinese. However, the award may be extended if the student continues on to another accredited program. The undergraduate scholarship is for a maximum of 4 years. Both LEP and the undergraduate scholarships provide a monthly stipend of about US$770. The graduate scholarships offer a slightly more generous scholarship of about US$900 a month.

Applicants accepted onto the master’s program can get the scholarship for a maximum of 2 years, while the doctoral program students can receive the stipend for up to 3 years. Applicants who wish to learn more about this program should visit:
http://www.sfmoe.org/asp_e/study_tw/scholar-1.htm. Applicants living in the state of Alaska, Northern California, Idaho, Montana, Nevada, Oregon, Utah, Washington or Wyoming must send their completed documents to the Ministry of Education’s regional office in San Francisco before the deadline:

Attention: MOE Language Scholarship
Cultural Division
Taipei Economic and Cultural Office in San Francisco
555 Montgomery Street, Ste. 503
San Francisco, CA 94111

Interest applicants can also contact Abby Wu at (415) 364-5607 or sfmoe@sfmoe.org or abby@sfmoe.org.

San Jose Museum of Art presents "Plastic Life," an experiment in new media from the Pacific Rim, Mar. 13-Sept. 19

2010-03-11T09:42:00.000-08:00

The San Jose Museum of Art will kick off its new exhibition series, “New Stories from the Edge of Asia,” with the exhibition Plastic Life, a showcase of new works in film, video, animation, and other dynamic media by artists from Taiwan, Japan, Korea, and the U.S. All the artists use traditional cultural imagery and techniques in weaving a compelling story.

In Charlene Shih’s Women (1999), traditional Chinese characters morph into a modern young woman on a journey of self-discovery. Shih, who lives in Taipei and Los Angeles, uses thousands of individual watercolor drawings on rice paper and stop-motion animation in the five-minute film.

Also included in the exhibition are the videos Nocturnal No. 4 (2008-09) by Taiwanese artist Chiang Chung-lun, and Bad (2005), by Su, Hui-Yu, also of Taiwan (made in collaboration with Huang Yi-ru and Wang Jia-ming).

In launching the exhibition series “New Stories from the Edge of Asia” the museum hopes to present works by artists living in Pacific Rim countries - a leading site of experimentation in new media. In addition to this cultural focus, the series addresses the technological interests and workforce of Silicon Valley, as well as its general audiences.

The exhibition is sponsored by an award from the MetLife Foundation’s Museum and Community Connections programs. Additional support for preliminary curatorial travel for Plastic Life was received from the Mentor Graphics Foundation and a travel grant from the Taipei Cultural Center of the Taipei Economic and Cultural Office, New York and Taipei.

The San Jose Museum of Art is located at 110 South Market Street in downtown San Jose, California. The museum is open Tuesday through Sunday, 11 a.m. to 5 p.m. Admission is $8 for adults, $5 for students and senior citizens, and free to members and children under 6. For more information, call 408-294-2787 or visit www.SanJoseMuseumofArt.org.

"Au Revoir Taipei" to premiere at Asian American Film Festival’s closing night, March 18

2010-03-11T09:40:00.000-08:00

The 28th San Francisco International Asian American Film Festival (SFIAAFF) opens tonight with The Daily Show, a romantic comedy set in New York City, but with a South Asian flavor. The opening reception will be at the Asian Art Museum, featuring the electrifying beat of Non Stop Bhangra. The Dholrhythms Dance Company will also perform, and give free lessons to attendees. So don’t miss the choice desserts, drinks and a star-studded crowd dancing to the rhythms of bhangra, hip hop, reggae, and electronica.

The closing night gala on March 18 will feature Au Revoir Taipei by Bay Area-native, and Taiwanese-American, Arvin Chen. Set in Taipei, this campy romance combines elements of film noir, classical musical and Taiwanese gangster films. Festival attendees will have the chance to see Taipei’s vibrant nightlife as a lovesick boy and a passive-aggressive bookstore clerk search for love in different pockets of the city.

The film’s North American premiere will show at the Sundance Kabuki Cinemas at 7pm. The next evening, the films will be the opening feature at the San Jose Opening Night Gala Reception at Camera 12 Cinemas. A reception will follow at the San Jose Musuem of Art.

Another film with Taiwan roots at this year’s festival is Prince of Tears. Showing on the 13th in San Francisco (Clay), 14th in Berkeley (Pacific Film Archive) and 20th in San Jose (Camera), the film is a coming of age tale set during Taiwan’s brutal anti-communist crackdown in the 1950s. The film focuses on the lives of two young sisters and how living under terror can turn the most hopeful of dreams.
The 28th SFIAAFF will feature approximately 120 works in San Francisco, Berkeley and San Jose. The festival is presented by the Center for Asian American Media (CAAM) and is the nation’s largest showcase of Asian and Asian American films. Since 1982, the SFIAAFF has been an important launching point for Asian American independent filmmakers as well as a vital source for new Asian cinema.

To find out more about SFIAAFF or to purchase tickets, please visit: www.asianamericanmedia.org.

Monte Jade’s upcoming annual conference in Santa Clara

2010-03-11T09:35:00.000-08:00

The 20th annual conference of Monte Jade Science and Technology Association (West Coast) and the 2nd Global Monte Jade Summit will be held at the Santa Clara Convention Center, Santa Clara, CA, on March 27. Newly elected Monte Jade chairwoman Lilly Chung said the main theme for the conference is “bridging two decades of technology innovation across the Pacific – celebrating the past and creating the future.”

Several prominent members of the business community and venture capitalists will participate in the meeting. Hsu Ta-lin, chairman and founder of H&Q Asia Pacific, will deliver a keynote speech at the opening ceremony. Bill Rutter, chairman and CEO of Synergenics, and chairman emeritus of Chiron Corporation will deliver another keynote.

Former Monte Jade chairman Ed Yang, a partner of iDVentures America and former CTO and VP of Hewlett-Packard, said participants at the conference will review strategies learned in their respective business environments around the world to help develop new opportunities in the future. He will moderate the Industry Luminaries Forum that will include panelists: David Lee (chairman of eOn Communications and Symbio, and senior advisor of SilverLake), William Miller (professor of Public and Private Management, Emeritus, Herbert Hoover Institute, Stanford University), Chintay Shih (former president of Taiwan’s ITRI), and Albert Yu (chairman of OneAnstrom and a former senior VP of Intel Corp.).

The second session will feature three panel discussions on the emerging mobile ecosystem, clean tech opportunities and the evolution of computing – cloud computing.

In the evening, Chao-Shiuan Liu, former premier of Taiwan and the Global Monte Jade Honorable chairman, will deliver a keynote speech on “How Taiwan faces the challenges after the global financial tsunami.”

The 20th annual gathering will also honor four outstanding businessmen for their achievements in the business arena as well as their contribution to society. The Distinguished Lifetime Achievement Award will be awarded to: Bruce Cheng (chairman of Delta), Terry Guo (chairman of Foxconn International), Stanley Wang (chairman, president and CEO of Pantronix Corp.), and David Lee.

For more information about Monte Jade or to register for the conference, please visit their website: http://www.montejade.org.

Named after Jade Mountain (Yushan), the highest mountain in Taiwan, the Monte Jade Science and Technology Association, West Coast ("Monte Jade") was set up in 1989 by a group of Chinese-American executives in Silicon Valley. The initial goal was to bring together high-tech experts from around the Bay Area and across the Pacific.

Monte Jade, incorporated as a non-profit organization in the State of California, held its first conference in San Jose in 1990. Today, there are 15 chapters worldwide. They include chapters in New York (East), Chicago (Mid-West), Washington DC, New England, Pittsburgh, Atlanta (South-East) Philadelphia, as well as in Taiwan, Hong Kong and Canada To better coordinate between the chapters, Monte Jade-USA was organized in 1993. The founding organization in the Bay Area is now known as Monte Jade-West Coast.

Election defeats a severe warning for KMT

2010-03-11T09:30:00.000-08:00

The results of Taiwan’s by-elections for four legislators were announced on February 27. The Democratic Progressive Party (DPP) won three seats in the counties of Taoyuan, Hsinchu, and Chiayi, while the ruling Nationalist Kuomintang (KMT) took just one seat in Hualien. In Hualien, the DPP candidate Hsiao Bi-khim lost to the KMT candidate Wang Ting-sheng by 6,100 votes, but the result was notable because the DPP had again closed the gap in this KMT stronghold.

Since taking office in May 2008, President Ma Ying-jeou’s KMT has lost five of the six elections including the election for city mayors and county magistrates at the end of 2009, and five by-elections for legislators. President Ma described this latest by-election defeat as a "severe warning" to the ruling KMT.

After this by-election, the number of DPP seats in the Legislative Yuan increased from 30 to 33, with the KMT retaining 75 and independents holding onto five spots. In the January 2008 elections, the KMT won 82 seats and the DPP took only 27. But since March 2009, the five legislative by-elections have seen a steady increase in the DPP tally.

Morale of opposition boosted

According to the Taipei-based China Times, the ruling party’s defeat can be attributed to several factors: the internal split of the KMT in Taoyuan and Hsinchu, the DPP’s efforts to rebuild trust among undecided and young voters, the low voter turnout (only 36-42 percent) and the absence of KMT voters in particular. Declining poll results for the KMT can also be attributed to the economic downturn, rising unemployment, the government’s unimpressive rescue efforts of Typhoon Morakot victims and the controversy surrounding US beef imports.

According the Central News Agency, the KMT’s secretary-general King Pu-tsung admitted that this election was a failure for the party. King said that the long-term problems of the KMT should still be dealt with despite the defeat. He will intensify efforts to reform the party by stopping the widespread practice of vote buying and exchanges of benefits with local politicians.

Commentator Liao Chin-tin said in the paper that low voter turnout showed the disappointment felt by voters that the legislators of both parties had left their positions unfilled in order to engage in the magistrate’s election.

After the presidential election defeat in 2008, DPP chairperson Tsai Ying-wen has rallied the party by winning five elections. This has boosted the morale of all DPP members. Tsai is expected to win another term as the DPP chairperson in May.

KMT facing uphill struggle

The Five Municipal Elections of Taipei City, Kaohsiung City, and the greater Taipei, Taichung, Tainan and Kaohsiung municipalities will be the next important elections before the 2012 presidential election in Taiwan.

The China Times noted that the DPP has a chance in the 2012 presidential election if it can hold onto its traditional strongholds of greater Kaohsiung Municipality and greater Tainan Municipality, and make a breakthrough in Taipei City or the greater Taipei Municipality. As such, the DPP has begun to position itself. Su Tseng-chang, the premier under the previous DPP administration, announced on March 3 his intention to run for Taipei city mayor at the year-end Five Municipality Elections.

The Central News Agency reported that Liao Kun-jung, professor with the Political Science department at National Chung Cheng University, predicts that the KMT will suffer another setback in the Five Municipality Elections, but they might perform better in the presidential election. He said the low turnout in recent elections is directly due to the KMT’s supporters’ general sense of apathy, but Liao expects they will still turn out to vote for President Ma. Liao stressed that Ma is likely to face a difficult election, but at this time, no obvious challenger has appeared to oppose him within the ruling party.

Political commentator Ku Er-teh noted after the 2008 presidential election that all the six elections are local ones and the DPP might not duplicate its recent successes in the 2012 presidential election.

Pres. Ma makes case for trade pact with China

2010-03-11T09:25:00.000-08:00

Taiwan’s President Ma Ying-jeou held a press conference on February 9th to explain the reasoning behind his administration's policies concerning the negotiation of the Economic Cooperation Framework Agreement (ECFA) with China. He said the pact would include measures focusing on tariff reductions and exemptions as well as legal protection of investment and intellectual property rights. The overall aim is to boost Taiwan's competitiveness.

President Ma expressed his worry that Taiwan’s competitiveness will be adversely affected by free trade agreements (FTA) between the members of the Association of Southeast Asian Nations (ASEAN) and China, which from January this year reduced customs duties on 90 percent of trade between some of the countries.

In order not to be left behind, Taiwan needs an ECFA with China, according to Ma. There has been huge change in Asia over the last decade. In 2000, there were only three FTAs signed in the region, but by 2009 the number had increased to 58. Only Taiwan and North Korea are yet to sign an FTA.

Three key issues to ECFA

An ECFA with China would stimulate foreign direct investment in Taiwan and assure that the island is not marginalized in the region. An ECFA should also help create more job opportunities for Taiwanese people by addressing tariff reductions, the protection of investment and intellectual property rights.

First is the matter of tariff reductions and exemptions. In 2008, bilateral trade reached over US$130 billion, with Taiwan exporting US$100 billion-worth of goods to China and importing US$32.5 billion from the mainland. With low or zero tariffs, Taiwan would benefit from increased export volumes.

Second is the need for investment protection. An estimated 100,000 Taiwanese businesses have invested in China, with the total investment topping US$80 billion. Taiwan needs a comprehensive set of measures to safeguard the island’s business interests when they encounter unfair or unjust treatment in China.

Third is the protection of Taiwanese intellectual property rights, including trade marks, patents, and special processing and innovations. Through arrangements under an ECFA, Taiwanese firms would be able to avoid becoming the victims of Chinese pirating.

President responds to public concerns

In addressing concerns that an ECFA might hurt certain domestic industries, Ma said that the government has formulated three types of assistance program to help offset the impact. "Rejuvenation" assistance is aimed at helping industries that are at risk but have not yet been hurt. "Systematic adjustment" assistance is aimed at improving the operations of industries that have begun to suffer, though not as heavily. In the case of industries experiencing severe setbacks, a "damage relief" program administered by the Ministry of Economic Affairs will provide assistance up to NT$95 billion (about US$3 billion) over a 10-year period.

In response to concerns that Taiwan will allow mainland labor and agricultural imports, the president underscored the fact that agreements under the World Trade Organization framework do not address movements of labor, and it will not be included in these cross-strait negotiations.

As for agricultural products, he pointed out, whereas the previous Democratic Progressive Party (DPP) administration had lifted restrictions on the import of 1,415 types of mainland products, his administration has not lifted restrictions on even a single additional category of agricultural goods.

As for the DPP’s suspicions that China harbors political designs to use economic agreements to make Taiwan more dependent, President Ma said the surging growth of Taiwan's trade with China and investment there is normal. It is in keeping with China’s place as a factory to the world and its ballooning worldwide trade.

Talk on ECFA gains momentum

According to the Central News Agency, Premier Wu Den-yih said on March 6th that Taiwan and China hope to sign ECFA in May or June, depending on the progress of the negotiations. Both sides will have to negotiate on their “early harvest” lists, which refer to the industries and services on both sides that will be granted immediate tariff concessions or more liberal trade terms under the ECFA, Wu noted.

Momentum seems to be building on China’s side for the negotiation to be concluded, following the first round of talks that was held in late January. The second round of ECFA talks is slated for late March in Taipei.

Who wins with ECFA?

2010-03-11T09:20:00.000-08:00

Taiwan and China have begun negotiating the details of the FTA-like Economic Cooperation Framework Agreement (ECFA) with a hope of scheduling an official meeting this May or June. Among the important preliminary items under discussion are Taiwan’s petrochemicals, textiles, mechanical equipment products and automobiles entering China tariff free. As the main source of Taiwan’s foreign exchange, these four industries create total exports worth NT$280 billion (US$8.75 billion), accounting for 30 percent of Taiwan’s total exports.

Commonwealth monthly reported that in order to minimize the holdups in the official negotiation process, the associations of these four industries have had their chairmen working with China since 2009. According to these businessmen, they have done their part in the give-and-take negotiations with their counterparts, and now await the formal announcement of negotiations between the two governments.

Petroleum, textiles seek equal footing with ASEAN

The petrochemical industry accounts for 20 percent of Taiwan’s total exports. In all, 40 percent of Taiwan’s petrochemical exports head to China, making that country the island’s biggest market. Most of Taiwan’s petrochemical exports are in upper string raw materials that are sent to China for processing. As an example, Formosa Plastics Corporation has a fleet of vessels to ship raw materials from its complex in Mailiao, Yunlin County, to production facilities in eastern China for further processing.

For the petrochemical industry, the most important issue is not the quality, but fast delivery and competitive costs. The addition of tariffs in China would have an enormous impact on Taiwan’s petrochemicals. Starting from January 2010, ASEAN member countries now enjoy zero tariffs on their petrochemical exports to China, meaning that Taiwan’s petrochemical raw materials are now priced 5 to 10 percent higher than those of ASEAN members.

For all intents and purpose, the textile industry is lumped with the petrochemical industry. Taiwan Textile Federation sent a delegation led by W.U. Wang, executive director of Formosa Chemicals and Fiber Corp., to sign a memorandum with his Chinese counterpart in July 2009. There they learned that almost half of Taiwan’s textile exports might enjoy zero tariffs once the ECFA takes effect.

The significance of the ECFA does not lie in increasing the strength of Taiwan’s petrochemical industry, but in achieving an equal footing with the ASEAN nations. It is also crucial for the petrochemical industry to retain the supply chain in Taiwan. Wang said by maintaining similar competition conditions, the ECFA will prevent Taiwan becoming more dependent on China.

Mechanical equipment Industry depends on China

Like petrochemicals, Taiwan’s mechanical equipment industry is also heavily dependent upon exports, which account for 60 percent of total exports. China is the also the largest market for Taiwan’s mechanical equipment products, receiving 30 percent of Taiwan’s total exports in this sector.

For the mechanical equipment industry, the ECFA would not only reduce the tariffs of exporting to China, but the agreement could mean that Taiwanese firms might set up manufacturing plants in China. Operating in Taiwan has all the advantages except Taiwan’s real estate is more costly and is also farther from the end-market consumers.

The mechanical equipment industry maintains a complicated supply chain. While in Taiwan, all the sub-contractors are within a 50-kilometer range, in the mainland, they are spread across hundreds of kilometers. Mechanical equipment is heavy and costly to transport by land. For Taiwan, transportation costs could be reduced and delivery speeded up if items were shipped by sea instead of over land. This is why only 20 percent of the mechanical equipment businesses invest in facilities in China. With the ECFA in place, Taiwanese firms would take advantage of lower costs in China to increase their global market share.

Auto sales shrinking

Unlike the petrochemical and mechanical equipment industries, Taiwan’s auto-makers are facing shrinking sales, estimated at 300,000 cars annually. With such a small market, they can’t afford to develop brand names and must count on promoting joint ventures with foreign companies to reduce production costs.

For the auto industry, the ECFA would help simplify the sale of 12 million Taiwan-made cars to China annually. Chen Guorong, general manager of Taiwan’s Yulon Motor, told Commonwealth that the ECFA offers an opportunity for Yulon to cooperate with China’s Geely Automobiles to develop a lower priced car. Yulon plans to import cheap Chinese auto components for assembly in Taiwan, with 40 percent added value to sell in Taiwan or export to other markets. This would convert ‘Made in China’ to ‘Made in Taiwan.’

However, Chen also understands that the ECFA poses a risk of converting Taiwan’s market into a part of the Chinese market. For example, after the merger of markets across the Taiwan Strait, Nissan, which has had a long term partnership with Yulon, might stop production in Taiwan, and only manufacture autos in China for export to Taiwan.

Japan and Korea poses greatest threat

Although these four industries have their own reasons for promoting the ECFA with China, their real intention is to block stronger competitors of Taiwanese goods – Japan and South Korea. A high ranking manager in the petrochemical industry said, as a matter of fact, Taiwan is not afraid of ASEAN plus one (China). The real threat to Taiwanese industry is Japan and Korea plus one (China).

In the face of China’s rising market, the largest in the world, Taiwan’s main strategy is to sign an ECFA with China before Japan and Korea, thus gaining a competitive edge over those two countries. This is one reason Japan and Korea have been avidly watching the ongoing progress of the free trade agreement developments between Taiwan and China.

Taiwan builds confidence in its soft power

2010-03-11T09:15:00.000-08:00

Through innovation and packaging, Taiwan’s snack food culture has extended Taiwan’s visibility and soft power according to the Singapore-based United Morning Daily. As a small island and diplomatically isolated, Taiwan has little power in a global fist fight, instead, it has significant influence by using its soft power. Taiwan’s soft power is evident in the island’s music, movies, snack foods, literature, arts, religion and designs.

Taiwan has long been influenced by other cultures and lifestyles according to Commonwealth monthly. Before World War II, Taipei was one-third Japanese. In a very short time, the Japanese disappeared to be replaced by Chinese mainlanders. After the Nationalist Chinese government moved to Taiwan, the US forces came to help defend the island against the Communist Chinese, building up American bases and communities in Taiwan. This introduced American music, literature, arts, and lifestyle to Taiwanese people.

Taiwan has adjusted to a history of immigrants and adjusted itself to the different nationalities drifting in and out. As a part of the adjustment, the island has been sensitive to changes and trends that have helped in the development of a unique Taiwanese operational style in global markets.

Pioneer of 24-7 model

Taiwan pioneered the 24-7 business model, which has spread to other parts of the world. There were 9,204 convenience stores in Taiwan as of the end of 2008, an average of one store per 2,500 persons. Making Taiwan No. 1 in the world in terms of convenience store density. Another type of 24-hour business is the karaoke video (KTV) store.

While Taiwan might have its Starbucks chain, it also has its special blend of local Taiwanese drinks. Pearl tea, a mixture of black tea, milk and chewy black tapioca balls made from yam flour, was first developed in Taichung in 1987. The drink, also known as Boba or Bubble tea, has now spread throughout Asia and beyond. In the San Francisco Bay Area, pearl tea cafes are as prevalent as Starbucks in some neighborhoods.

Instant noodles are snack food invented in Taiwan and now popular throughout the world. They have become the inexpensive snack food of choice for many college students.

Even a regional food like Shanghai dumplings have been popularized by Taiwan’s Din Tai Fung Dumpling House. Although Shanghai might be the birthplace of these delicious soup dumplings, Taiwan’s Ding Tai Fung has become famous for producing these labor-intensive dumplings in each of its restaurants around the world.

Asia’s new trend setter

As a fashion leader in every lifestyle trend, Taiwan has become an important cultural center in Asia. In particular, for every ten workers in Taipei, there is one who works in an area related to culture, and out of every five companies, you will find two working in a culture-based job. According to statistics from the Ministry of Economic Affairs, Taiwan’s cultural innovation industry generated NT$600 billion (US$18.7 billion) in 2007, with a total of 210,000 employees.

Well-known writer Lung Ying-tai observed, Taiwan is the desert rose in the Chinese cultural world. Hong Kong visitors like the Eslite Bookstore, which is open 24 hours a day. Chinese and Japanese visitors flood the National Palace Museum to purchase souvenirs of the famous Jadeite Cabbage.

Half a century ago, Taiwan lacked a strong point of view, culturally. The people followed a generalized global fashion trend, one which pointed toward Paris, New York and Japan. But nowadays, Taiwanese confidence in its cultural contribution has shifted and the world is taking note.

First Taiwan-made film raises climate change profile

2010-03-11T09:10:00.000-08:00

Taiwan’s first documentary on climate change premiered on February 22nd in Taipei. Produced by Sisy Chen, “Plus or Minus 2 Degrees Celsius” urged the discussion of climate change as a top national security priority in Taiwan. Chen told local news media that the name of the film came from the consensus reached at the Copenhagen Summit in 2009 that the world temperature should be controlled within 2 degrees Celsius in order to head off further deterioration in the world’s climate.

The 70-minute film, produced over five months, and with NT$8 million (US$250,000)-worth of financial support from Taiwanese businesses, local media, researchers and volunteers, seeks to educate Taiwanese people about the importance of balancing environmental protection with economic growth.

Taiwanese amongst first climate change victims

The film cites the United Nations Intergovernmental Panel on Climate Change (IPCC) statement of 2007, that global temperature is likely to rise by between 1.1 and 6.4 degrees C (2 and 11.5 degrees F) during the 21st century and that sea levels may rise 18 to 59 centimeters (7.08 to 23.22 inches).

Using those statistics combined with information compiled by researchers from Taiwan’s Academia Sinica, Chen came to realize that some parts of Taiwan would be under water along with low-lying island nations such as the Maldives and Kiribati. Taiwan’s affected areas would include Dongshih in Chiayi County, Donggang and Linbian in Pingtung County, and Mailiao in Yunlin County in the South, where Taiwan’s largest petrochemical complex is located.

If global temperature is not controlled, sea-levels are predicted to rise further, and the second group of climate change victims could include all the delta areas of the world, such as the Ganges Delta in South Asia. These rising sea levels would also threaten to submerge Taiwan’s Ilan plain, the metropolitan Taipei basin and metropolitan Kaohsiung. Chen warned that the Taiwanese will be among the first wave of flood refugees in the global warming disaster.

Government urged to enhance climate security

The film urges its audience to send e-mails to President Ma Ying-jeou to elevate the concern within government regarding the issue of Taiwan’s climate security to the level of national security and to start a green revolution so as to “save the earth, save Taiwan and save our children.”

In an editorial, the Taipei-based China Times took the government to task for asking the people to reduce carbon emissions while the state-owned Taipower company is still prioritizing the construction of more power plants, petrochemical complexes and steel plants. The government seems a long way from matching words with action to tackle the looming catastrophe.

Commonwealth magazine paints a gloomy picture for Taiwan and its ability to cut emissions, saying that the international reality after the Copenhagen Summit on global climate changes brings heavy pressure to bear on Taiwan. Like Taiwan, many of its neighbors set hugely ambitious targets to reduce carbon emissions at the meeting.

China pledged that the level of carbon emitted per unit of GDP in 2020 would be 40 to 50 percent lower than in 2005, while South Korea stated that its carbon emissions in 2020 would be 30 percent lower. Meanwhile, Taiwan has set a goal of reducing carbon emissions between 2016 and 2020 to the level of 2008, and to cut emissions to the level of 2000 by 2025.

Participation in emissions trading needed

For Taiwan alone, this goal is likely to be unachievable, said Wu Tsai-yi, president of the Taiwan Research Institute (TRI). According to current economic development trends, Taiwan’s GDP is predicted to grow 3.5 percent per year. This means Taiwan would have carbon emissions of 460 million metric tons in 2025, doubling that of 214 million metric tons in 2000. That is an average growth of 10 to 12 million metric tons per year.

A more realistic way for Taiwan to reduce carbon emissions is to go overseas to buy carbon rights or participate in emissions trading, also known as Cap and Trade, in addition to regional tree planting and the clean development mechanism (CDM). Under the Kyoto Protocol, this special arrangement allows industrialized countries with a greenhouse gas reduction commitment to invest in ventures that reduce emissions in developing countries as an alternative to more expensive emissions reduction in their own countries.

Wu said, according to the TRI study, every 10 million metric tons of carbon emissions would generate 0.06 to 0.08 percent of economic growth. If emissions cannot be cut, Taiwan has to limit its economic growth. According to Commonwealth, although Taiwan has ambitious cabon emissions reduction goals, it is not clear yet how the island could cope with this new situation after the Copenhagen Summit.

Who do Taiwanese people trust most?

2010-03-11T09:05:00.000-08:00

According to the March issue of Taiwan’s Reader’s Digest, Master Cheng Yen of the Buddhist Tzu Chi Foundation tops the list as the most trusted person in Taiwan. She held a huge 22 percent lead over Lee Chia-tung, the former president of Chi-nan University, who placed second. She was followed by President Ma Ying-jeou in third, Dr. Henry Lee (US-based forensic scientist) in fourth, His Eminence Paul Shan Kuo-hsi, S.J. (Roman Catholic Church Cardinal) in fifth and Master Aki (grand chef of the national banquets) in sixth.

The top choices

Known as the "Asian Mother Theresa," Master Cheng Yen founded the Buddhist Tzu Chi Foundation in 1966 with a commitment to promote the religious spirit of charity. After every major disaster in Taiwan, Tzu Chi volunteers are first to arrive on the scene to help. With a vast number of volunteers, they are able to match - if not surpass - government agencies with their efficiency in rescue and relief work. Even in remote corners of the earth, Tzu Chi volunteers are often the first to send medical assistance. Master Cheng Yen’s name has been put forward for the Nobel Peace Prize, notably, by the 2008 Nobel Prize winner in Physiology or Medicine Harald zur Hausen who believes she is the most qualified candidate for the honor.

The Digest’s multiple-choice survey polled Taiwanese people about a range of areas. With respect to public welfare, unselfish and high morals, and professionalism, Master Cheng Yen ranked first. She was followed by Cloud Gate Dance Theater founder Lin Hwai-min (5), former president Lee Chia-tung of Chinan University (7), and "the forever civil servant on TV" Chang Hsiao-yen (10). All are long-term volunteers in public service seen to bring social stability.

Others receiving a high degree of trust included movie director Ang Lee (3) and former US Major League Baseball player Wang Chien-ming (8). They are considered to be persistent, focused and highly idealist. Professor Li Ding-chan of The Institute of Sociology in Tsinghua University said. "The top ten are all outstanding professionals and long-term hard workers in their professional fields. They all have the attitude of dedication and stability, no negative news or tricks, thus winning the trust of the people."

Money does not equal trust

Comparatively speaking, those associated with "monetary power" ranked lower. In particular, entrepreneurs’ reputations of being trust-worthy took a beating in the face of the global financial crisis. According to Liu Wei-kong, an associate professor of sociology at Soochow University, "In the last year's financial turmoil, the public showed antipathy for the money game; and the decoupling of social wealth and social responsibility led to low public trust in entrepreneurs"

The only person that bucked this trend was Morris Chang, chairman of the Taiwan Semiconductor Manufacturing Corp., who ranked in ninth place. Although a business owner, Chang gives the impression of honesty. Once at a shareholders’ meeting, Chang warned investors that wafer prices for the next quarter would not be good, asking investors to be conservative.

Foxconn chairman Terry Gou is also ranked in the top 20 at number 14. According to Liu’s analysis, Gou has been actively engaged in public service. "His performance after Typhoon Morakot in August 2009 was better that that of the government. He has a reputation as the Bill Gates of Taiwan."

Media prominence does not equal trust

In the Digest’s survey, the low rankers were politicians, talk show hosts, TV pundits and entertainers. Professor Ku Chung-hua of National Cheng Chi University pointed out, "Taiwan's journalists have their own political stand points, and the media relates sensational news to high ratings. This is the reason why they fail to win public trust." Chang Ly-yun, researcher at the Institute of Sociology at Academia Sinica, said, "It is a great irony. The media, which control public opinion in society, and the politicians, who control the operation of the government, should be trusted by the people because they are all involved with public interests. Instead, they occupy the lower rankings.”

At the same time, being a popular artist does not mean they are trusted. Jay Chou, once named "Asian Little Superstar" holds 52nd place. "You can see the good or bad reputation of the media from Jay Chou’s ranking," said radio host Wang Tzu-sou. "Why should Jay Chou, who was listed by CNN as one of Asia's 25 most influential people in the world, get such a low ranking? One of the possible reasons is that he has been tarnished by his many romantic scandals. So regardless of how prominent you are, once you hurt your image, your credibility is also discounted."

Former presidents trailed at the bottom

According to Reader’s Digest, the survey asked respondents to make a single choice among the most trusted figures, Master Cheng Yen was again ranked first and the national banquet chef Aki came in at sixth place. These rankings did not change, but President Ma Ying-jeou’s ranking jumped to third from 37th place. Political commentator Nanfang Shuo said that this is because Ma enjoys national visibility. In the multiple choices survey, Ma is ignored because respondents picked others, but in the single choice survey, respondents remembered him. It is interesting to note that in the multiple choice survey, former President Lee Teng-hui ranked 75th while another former President Chen Sui-bian came in last at 80th.

Japanese-American scholar Francis Fukuyama said in his book Trust: The Social Virtues and the Creation of Prosperity that trust is a form of social capital, and only a high degree of trust in society can lead to the creation of higher economic prosperity. Professor Ku agrees that Taiwan's social trust is indeed in fragile shape, but the operation of a modern society depends on the political and economic systems, not on an individual. "So, trust in individuals is full of risks, not as good as the trust in a system." Ku said that if social trust has been low for a long time, the economy will not recover easily.

In the survey, the Reader’s Digest listed 80 celebrities from all walks of life in Taiwan and asked respondents to pick those they trusted most. The survey was conducted by Digital Edge, which sent out 16,200 e-mails and received 1,003 responses. The final tally was taken from 760 valid responses in late October 2009.

Coffee cultivation gains popularity

2010-03-11T09:00:00.000-08:00

With the growing popularity of Gukeng Coffee (Yunlin County) and Dongshan Coffee (Tainan County) in southern Taiwan, more local farmers are beginning to tap into the market for this fashionable beverage. This move among farmers is not only limited to Tainan and Yunlin Counties, but also extends to Nantou, Hualien, Alishan and Pingtung. In fact, coffee has become the fourth most popular crop in Yuchi (Nantou County) after black tea, orchid and mushroom.

The Taipei-based China Times reported that many years ago, a member of the Shen Yen-chieh's family in Yuchi township brought back two pots of ornamental coffee seedlings after visiting Taichung. A year later, the pots could no longer contain the coffee trees and they were moved outside under areca palms. After three more years, these two Arabica coffee trees had become prolific bean producers, and that was when the Shen family decided to plant more coffee trees. Now the family has over a thousand coffee trees planted in 1.4 acres.

Yuchi provides an ideal environment for growing coffee trees. The soil quality, altitude and temperature all allow the trees to thrive and bear top quality beans. Shen said after seeing the falling price of betel nuts derived from the areca palm, it was natural for farmers to remove the palms in favor of planting coffee trees.

Taiwan is no stranger to coffee cultivation. Under Japanese colonial rule in the first half of the twentieth century, Rueisuei-Wuhe in eastern Hualien County, Gukeng in Yunlin County and Fengshan in Kaohsiung County in the south were the three big coffee production areas in Taiwan. This changed as cheaper imported coffee pushed out local brands. But in the last couple of years, the Hualien County government has started to promote coffee again. Now they have two brands on the market – Rueisuei Coffee and Wuhe Coffee.

Taiwan’s largest coffee region is located in Tainan County. In particular, Dongshan has a plantation area of about 370 acres. Farmers there can produce 616,000 pounds of raw beans, which results in about 88,000 pounds of roasted coffee beans. But this changed after the onslaught of Typhoon Morakot in August 2009. Since then, all coffee trees have been infected with codling moth pests, which agricultural experts have been hard pressed to control.

Besides planting coffee, Devin Coffee of Pingtung County has gained popularity by marketing itself as a tourist destination, but Typhoon Morakot has dealt them a double blow. Not only are there no beans to harvest this year, many of the farms are now located on unstable ground, considered too dangerous to farm.

Although local coffee beans have gained ground in Taiwan, there are still many hurdles to overcome. The Farmers Association in Yunlin County said the Gukeng coffee growers have not been able to plant coffee trees on a large scale because they are not good at the management of coffee production and processing. Most of the local farmers still stick with labor intensive tea plants. The association hopes this will change if the local agricultural authorities set up processing plants, attracting more growers, improving overall bean quality and help in the marketing of local beans.

The Flying Tigers

2010-02-11T09:55:00.000-08:00

January’s edition of Taiwan Insights featured an article about the Flying Tigers and Arthur Chin. Chin’s grandson, John Gong, wrote a thank you e-mail to Taiwan Insights including some interesting photos. Gong works as the director of Constituent Services for US Congressman Devin Nunes, representing California's 21st Congressional District. Among the pictures Gong included were photos of his family’s visit to Taiwan to attend the opening ceremony of the Arthur Chin Special Exhibition at the Republic of China’s Air Force Academy near Kaohsiung in 2009.

In 1937, when the Sino-Japanese war broke out, Claire Chennault recruited more than 200 American volunteer pilots and technicians to join Chiang Kai-shek and his Nationalist forces in fighting the Japanese in China. Before the United States declared war on Japan, the Flying Tigers were known as the American Volunteer Group (AVG). In 1943, AVG was dissolved and merged with the Nationalist Air Force, but the Flying Tigers retained their legendary name. During World War II, the Flying Tigers transported supplies from India to China, and supported British troops in their fight against the Japanese in Burma. The Flying Tigers shot down more than 2600 Japanese planes, but at a cost of 563 of their own.

Early February, Hong Kong-born director John Woo announced in Taipei that he has raised US$150 million to make a film documenting the Flying Tigers story. Woo is known for directing action packed Hollywood films such as Mission Impossible 2, Face/Off, Broken Arrow and Windtalkers.

Generalissimo Chiang Kai-shek, Madame Chiang and Claire Chennault (Courtesy of the ROC Air Force Academy in Taiwan).

The logo of the Flying Tigers, reportedly designed by Walt Disney.

A special badge issued by the Nationalist Chinese government to the combat pilots of the Flying Tigers. It reads, “This foreigner has come to China to help in the war effort. Both soldiers and civilians should rescue and protect him.” The badge was sewn on the back of a fighter pilot’s jacket so that Chinese people could extend a helping hand to downed pilots.

A Nationalist Chinese soldier stands guard over the fighter planes of the Flying Tigers.

The painting “Hawks over China” by US artist Roy Grinnell depicted the story of Arthur Chin (Chen Rui-dian), who flew the Curtiss Hawk in dog-fights with Japanese airplanes. The original is on display at US Air Force Museum (Courtesy of John Gong).

An autograph signed by Bob Layher, a member of the Flying Tigers and presented to Manfred Peng, publisher of Taiwan Insights.

A group photo of Chinese and American pilots of the Flying Tigers. (Courtesy of the ROC Air Force Academy in Taiwan).

The opening of Arthur Chin’s Special Exhibition at the Nationalist Chinese Air Force Academy in November, 2009. From the left to right, John Gong (Chin’s grandson), Susan Gong-Ennis (Chin’s daughter), Chen Chao-min (then Defense Minister of Taiwan), Lei Yu-chi (commander of Taiwan’s Air Force), and Mike Tien (superintendent of the Air Force Academy) (Courtesy of John Gong).

Taiwan’s Haiti relief efforts praised

2010-02-11T09:50:00.000-08:00

Almost a month ago Haiti experienced a magnitude 7.0 earthquake that left the capital, Port-au-Prince, in ruins. Besides causing death and destruction on a massive scale, the earthquake also destroyed the country’s already weak infrastructure. Within 24 hours of the quake, Taiwan dispatched five rescue and medical teams to Haiti. Being no strangers to earthquakes, the Taiwanese knew that time would be crucial if lives were to be saved amid the rubble. Since then, Taiwan has joined other countries in helping an estimated two million survivors to rebuild their lives.

Taiwan, a country rarely in the international spotlight, has truly risen to the challenge by mobilizing its resources quickly and effectively, something that has not gone unnoticed by the international community. The Wall Street Journal noted how Taiwan was pulling its international weight in Haiti despite being kept in a diplomatic no-man’s-land. “It should give those working to help Haiti pause to think that a prosperous nation ready and willing to shoulder such burdens is relegated to the wings of the international stage.” Taiwan’s quick action was also mentioned by Time magazine, which wrote, “some of the first search-and-rescue teams to depart for the devastated Haitian capital came from another small island on the other side of the globe: Taiwan.”

Ma pledges ongoing support

Last month, during President Ma Ying-jeou’s visit to the Dominican Republic, he made a point of meeting Haitian Prime Minister Minister Jean-Max Vellerive to personally deliver the relief supplies that had been brought on his chartered plane. Along with 10 tons of disaster relief supplies, Ma also increased Taiwan’s aid donation to US$10 million and gave the prime minister Taiwan-made satellite phones. Speaking to the media afterwards, Ma outlined the four most urgent tasks.

First, Taiwan will provide medical services to help prevent the outbreak of disease that could easily spread given the unsanitary conditions in many devastated areas. Already, teams of medical personnel have rotated into Haiti to offer medical assistance at health stations. On January 19, one such group comprised of 66 medical professionals (23 from the US) from the Taiwan Root Medical Peace Corp (TRMPC) transited through San Francisco on their way to Haiti. They brought 2 tons of medical supplies and equipment for Haiti. Upon that team’s departure, another medical team took its place. So far, three teams have already been sent, and over 5,000 victims treated as of January 28.

On January 27, Taiwan’s first shipment of Taiwanese medical supplies arrived in Port-au-Prince. The 6 tons of supplies were officially delivered to the World Health Organization’s (WHO) representative Henriette Chamouillet.

Second, Taiwan's government plans to join other countries in building “villages of hope” for hundred of thousands of homeless Haitians. It hopes to build 200 homes capable of accommodating up to 1,000 people, increasing to 1,000 units to house 5,000 people.

Besides TRMPC, other civil organizations, as well as Taiwan International Health Action, have sent a combined 84 tons of relief supplies (worth US$378,000) which arrived in the Dominican Republic on January 18 for transportation to Haiti. The provision included: first aid supplies, foodstuffs, drinking water, clothing, tents and lighting equipment. In April, Taiwan’s Council of Agriculture (COA) will continue the flow of aid with a pledge of 200 tons of rice.

Third, Taiwan would like to establish farms and factories near the newly built housing so that the new tenants can be offered vocational training and jobs to get them back on their feet. The president will encourage Taiwanese businesses to work in Haiti to spur job creation. Already the TRMPC has allocated US$110,000 to Mercy Corps International for exactly this purpose.

Fourth, the government will also work with non-governmental organizations to encourage direct sponsorship of orphaned children through World Vision Taiwan and the Taiwan Fund for Children and Families. Currently, Taiwanese people sponsor 200,000 children overseas, according to the Taiwan News.

Taiwanese officials are also mulling the possibility of canceling or reducing Haiti’s public external debt, which reached US$1.8 billion in 2008. At least US$91 million of that amount is guaranteed by Taiwanese banks.

Tzu Chi’s inspirational work for Haiti

Beside government agencies, Taiwan’s biggest non-profit organization, Tzu Chi, has taken an active role in the relief work. Immediately after the earthquake, the Buddhist Tzu Chi Foundation sent a team to evaluate the situation in Haiti. The foundation decided to focus its work in the district of Tabarre since it was designated by the UN to be a suitable place to accommodate survivors, and also because Tzu Chi had prior experience working with a local orphanage, the Institute for Human and Community Development (IHCD), there. Tzu Chi volunteers had visited and provided assistance to the orphanage just a year before the earthquake. When they returned to the area, they saw some of the plastic tarpaulins they had given out before being used to provide make-shift shelters.

Soon after the earthquake, Tzu Chi began stockpiling instant corn powder, a food staple in Haiti, and began including it, along with cooking oil, milk powder, beans, oatmeal, rice, gas stoves and reusable utensils, in their relief packages. After the initial small distribution on January 29 at IHCD, Tzu Chi has continued with several smaller distributions as well as a large distribution in the city of Tabarre in cooperation with officials from USAID, local churches, the Haitian police and UN peacekeepers from Jordan. This week, the foundation will conduct another large-scale distribution by providing food as well as medical and dental services to over 10,000 survivors.

Early February, Tzu Chi began its work relief program which pays Haitians for cleaning up their community in return for either food or cash. People registered to take part are delighted to be paid to clean up and to help in the reconstruction. It gives them a sense of hope, respect and pride. Participants are fed by Tzu Chi volunteers and they can also take meals back home for their families.

Currently, more food, blankets and portable restrooms are on their way to Haiti from the United States and Taiwan. On February 4, Tzu Chi’s third major shipment, with enough food for 1.6 million meals, left its headquarters in Hualien, Taiwan.

A time for wider recognition

Taiwan has a long standing relationship with Haiti. It is one of the countries that continue to recognize Taiwan as a sovereign country. Even before the earthquake, Haiti was a country in need of assistance, and Taiwan has tried to do its part.The Taipei-based International Cooperation and Development Fund (ICDF) have been working with local farmers to see if a Taiwanese strain of rice called “Taichung-shien No. 10” would grow well there. With the ICDF’s assistance, farmers in Haiti have planted 3,000-hectares on farms in the Artibonite region. When the earthquake struck, the ICDF donated US$50,000 towards purchasing 50 tons of locally grown rice to boost post-quake relief. Buying locally is the best form of assistance since farmers are provided with a market for their products and the money spent remains within Haiti. Besides working with traditional farmers, ICDF is also supporting fish-farming in southern Haiti.

Before the earthquake, Haiti was ranked as one of the poorest countries in the world, at 153 out of 177 nations. Located all the way across the globe, Taiwan went the extra mile to help Haiti. In many other parts of the world, Taiwan has also stepped up to the plate to offer assistance to many other countries in their hour of need. Perhaps now is the time to acknowledge just how much more Taiwan could do if it were a full fledged participating member of the international community.

President Ma transits through San Francisco

2010-02-11T09:45:00.000-08:00

Taiwan’s President Ma Ying-jeou arrived in San Francisco on Jan 25 for an overnight layover en route to Honduras and the Dominican Republic. He was greeted at the San Francisco International Airport by Raymond Burghardt, chairman of the American Institute in Taiwan (AIT), and by Jason Yuan, Taiwan’s chief representative in Washington, D.C.

During his stay, he met with San Francisco Mayor Gavin Newsom, Oregon Congressman David Wu, and talked on the telephone with 11 US senators and house representatives on the issues of US beef imports, US arms sales and Taiwan’s aid to Haiti.

According to the World Journal, Ma made the most of the telephone conference calls which were attended by Taiwan’s Secretary General of the National Security Council Su Chi, Agricultural Minister Chen Wu-hsiung, Economics Minister Shih Yen-shiang, Foreign Minister Timothy Yang and Information Minister Su Jun-pin.

The congressional members Ma spoke to included US House Speaker Nancy Pelosi, Kit Bond (vice chairman of the Senate Intelligence Committee), Eni F. H. Faleomavaega, (chairman of Subcommittee on Asia, the Pacific and Global Environment), Robert Menendez (chairman of Senate Taiwan Caucus), Saxby Chambliss (ranking member of the Senate Agricultural Committee), and Congressman Dave Camp, who joined with three other representatives in a letter to the US Trade Representative demanding Washington suspend trade talks until Taiwan lifts its ban on US ground beef and bovine offal.

Ma’s delegation emphasized that the calls were defined as “communications with Congress” only. Over half of the senators and house representatives Ma talked to were from agricultural states or constituencies. They all expressed their concerns about Taiwan’s policy toward US beef imports. Ma explained that Taiwan welcomes American bone-in beef with the exception of ground beef and bovine offal over public health concerns.

The Central News Agency reported after listening to Ma’s explanation, that most of the US congressmen understood Taiwan’s attitude and stance. Ma expressed his hope that they would communicate with their constituents to avoid further misunderstanding about Taiwan’s position.

Ma also met with prominent Asians, such as John S. Chen (chairman of the Committee of 100), David Ho (well-known Taiwanese American AIDS researcher), and Steve Chen, (the co-founder of YouTube and another famous Taiwanese American entrepreneur). He also visited the pharmaceutical company IMPAX Labs, run by a Taiwanese American entrepreneur in Hayward, CA.

The president continued on to Central America where he attended the inauguration ceremony of Honduran President Porfirio Lobo Sosa. He then traveled on to the Dominican Republic for a short visit to express his concern for neighboring Haiti, which was struck by a catastrophic magnitude-7 earthquake on January 12. His chartered flight carried 10 tons of disaster relief supplies that were unloaded in the Dominican Republic and driven into Port-au-Prince, Haiti’s capital.

Celebrate the Lunar New Year with Taiwan Films

2010-02-11T09:40:00.000-08:00

The Chinese Center of the San Francisco Public Library, in association with the Taipei Economic and Cultural Office in San Francisco, presents an afternoon of Taiwan films on Friday, February 12, 2010. The program begins with a documentary, Taiwan’s Ecological Ambience, and is followed by Taiwan’s breakaway blockbuster, Cape No. 7.

Shown in the Koret Auditorium in the lower level of the Main Library, 100 Larkin Street (at Grove), San Francisco. All programs at the library are free.

2:00 – 2:50pm
Taiwan’s Ecological Ambience (documentary)
Discover a kaleidoscope of birds, butterflies, plants, animals and other natural wonders found in Taiwan. Produced by Taiwan’s National Cultural Associations and ETTV.

2:50 – 5:00pm
Cape No. 7 (feature film)
The winner of more than fifteen awards, this film offers a glimpse into the ordinary lives of the people living in a picturesque coastal town in southern Taiwan. It weaves two stories, filled with comedy, romance and music, set sixty years apart.

Orz Boyz! at Tacoma’s Sister Cities Int’l Film Festival on Feb. 25

2010-02-11T09:35:00.000-08:00

Starting February 4, Tacoma kicked off the 8th Annual Sister Cities International Film Festival celebrating some of the most outstanding films offered from around the world. On Thursday, February 25, Orz Boyz! will be the featured film representing Taiwan.

Orz Boyz! is a moving story about the camaraderie between two mischievous boys with a powerful imagination. With the two main characters nicknamed “Lair No. 1” and “Lair No. 2,” the story is funny, yet filled with romantic dreams and yearning.

The festival began on February 4 and continues until April 8. However, Orz Boyz! will only be shown on February 25 at 7:30pm. Each Thursday’s event begins at 6:30pm with authentic international cultural entertainment for everyone to enjoy. Tickets are $10 and can be purchase at the Blue Mouse Theater at 2702 N. Proctor or online at www.sistercityfilmfest.org.

Obama administration approves arms package to Taiwan

2010-02-11T09:30:00.000-08:00

On January 29, the Pentagon formally notified Congress of the proposed arms package to Taiwan. President Ma Ying-jeou welcomed the decision saying it would bolster Taipei’s confidence in dealing with Beijing, reported the United Daily News. The deal did not cover sales of advanced F-16C/D fighter jets or the diesel-engined submarines which Taiwan had requested. However, these exclusions did not mean the purchases would not go ahead said Premier Wu Den-yih. The two sides are still discussing the weapons systems and negotiating the price, according to the Taiwan News.

Following Washington’s decision, Beijing lodged a strong protest, threatening to halt military exchanges with the US, review major cooperation issues and impose sanctions on companies involved in this transaction. Philip J. Crowley, U.S. State Department spokesman, described Beijing’s response as “predictable” and said the Chinese government has long opposed U.S. arms sales to Taiwan. “We did not consult with China before taking this action,” he said.

The proposed US$6.4 billion arms package includes two mine-hunting ships, 60 UH-60 Black Hawk helicopters, 12 Harpoon anti-ship missiles, 114 Patriot PAC-3 anti-missile systems and 60 ship-based communications systems. According to Wang Yu-chi, the Presidential Office spokesman, the U.S. announcement came as no surprise to Ma as he had already been notified some time before by the related ministries.

Upon hearing the news, the Opposition Democratic Progressive Party (DPP) Chairwoman Tsai Ing-wen said that Taiwan's success in getting the arms purchase was the result of hard work by the previous DPP administration. She urged the government to pursue a deal on the purchase of the submarines and F-16s.

Tsai also called on the government to establish an efficient coastal defense system in light of reports that a Chinese submarine had crossed into southern Taiwanese territorial waters on January 27. The government should not create the false impression that a war between Taiwan and China is impossible, because that would threaten national security by giving the military the wrong impression, Tsai said.

The announcement of US arms sales to Taiwan was greeted with applause from legislators from the ruling and opposition parties in Taiwan. The Taipei-based China Times said this proves that the majority of Taiwanese people are united on the issue of national security. Given the constant bickering between the two parties on most other issues, the consensus on the purchase of US arms makes for a refreshing change.

TECO official explains arms purchase

2010-02-11T09:28:00.000-08:00

On February 4, Manfred P. T. Peng, the director of the Press Division of TECO-SF, wrote this letter in response to George Koo's article "Arms Sales Adds Complexity to US-China-Taiwan Triangle."

In response to George Koo’s article, I would like to point out:

1) In the last 30 years, successive US administrations have sold arms to Taiwan and this current package was proposed under GW Bush’s administration, not the Obama administration. As such, Beijing has no reason to be “caught by surprise.”

The proposed arms package is in keeping with the Taiwan Relations Act, passed by US Congress (1979) when Washington broke ties with Taiwan in favor of the People’s Republic of China. The act stipulates US’s non-official relations with Taiwan and requires the US government to provide Taiwan with sufficient arms of a defensive character to maintain the island’s security.

2) There have been big improvements in cross-strait relations since Taiwan’s president Ma Ying-jeou took office in May 2008. However, Beijing has continued to increase their military spending without renouncing the use of force against Taiwan. Currently, China has over a thousand missiles targeting Taiwan.

The purchase of American arms will enhance the sense of Taiwan’s security and confidence, allowing the Ma administration to continue a political dialogue with China from a position of strength. Koo’s implication that President Ma is pandering to the approving rating with this arms sale does not make sense, since it is wholeheartedly supported by both the opposition and ruling parties.

3) Washington’s arms sales is not intended to rapidly reverse the balance of power in the Taiwan Strait, but a demonstration of political commitment by the US to Taiwan’s security and regional peace. With advanced weapons, Taiwan could increase the difficulty of a Chinese invasion and deter China from doing so. Taiwan has no intention of getting into an arms race with China. Any military actions across the straits would bring uncontrollable consequences to China as well.

Instead of adding complexity to the situation, the arms sale merely reflects the US-China-Taiwan triangular relations long established by the Taiwan Relations Act.

To link to George Koo’s article in New America Media, please click below:
http://news.newamericamedia.org/news/view_article.html?article_id=95d4ddc4a93c7ca66b668aec0528fddc

Taiwan seeks to address economic concentration

2010-02-11T09:25:00.000-08:00

Several economic indicators have revealed an optimistic upswing in Taiwan’s export-oriented economy after being hit particularly hard by the global financial crisis. According to the November monitoring index released by the Council for Economic Planning and Development (CEPD) on December 28, seven of the index components – including customs-cleared exports, manufacturing sales and the industrial production index – indicated a vibrant economic situation for the first time in 25 months. However, the CEPD said the monitoring indicators do not suggest Taiwan’s economy is overheating because the situation in 2008-2009 was so extremely dire.

National Central University’s Research Center for Taiwan Economic Development has also released survey findings showing that the consumer confidence index rose to a 20-month high of 65.39 in December 2009, marking a return to the level seen before the recession. According to the Ministry of Economic Affairs (MOEA), Taiwan’s exports in December 2009 continued to improve, totaling US$31.73 billion, up almost 53 percent from a year ago. By region, orders from China showed the fastest recovery, with positive growth starting in July 2009, while those in Europe still lagged behind.

Taiwan’s product, market concentrations hampered growth

During the Southeast Asian financial storm of the late 1990s, Taiwan’s performance was the best among the four Asian Tigers. But in the latest global financial downturn, Taiwan has been slower to recover. The Commonwealth magazine attributed this weakness to Taiwan's concentration concentration on select sectors over the last decade.

Taiwan has depended too heavily on exports, which have contributed higher growth rates to the economy than has domestic consumption over the last four years. Export volumes have relied too heavily on two industries: semiconductors and flat liquid crystal display (LCD) panels. The biggest problem is that Taiwan has placed too much emphasis on expanding the scale of production in a bid to head off competition from overseas, but has failed to take control of technology and the market. This problem has been highlighted by the overproduction of computer memory chips.

Another problem is that over 40 percent of Taiwan’s exports are concentrated with China and Hong Kong. An over dependence on exports and a reliance on a few markets has also served to weaken Taiwan’s economy.

South Korea, on the other hand, which was hit the hardest in the late 1990s, has now become the strongest Asian Tiger. It has developed a rather balanced economy: strong in electronics, petrochemicals, metal manufacturing and transportation.

You Chi-chung, deputy director of the Industrial Economics and Knowledge Center of the Industrial Technology and Research Institute, said Taiwan’s value added ratio has dropped from 27.8 percent in 1999 to 18.46 percent in 2008. He noted that one of the problems in Taiwan’s industrial structure is that the capability of creating added value is pretty low, which has harmed household incomes and the quality of life.

The four problems of Taiwan’s economy

In a review of Taiwan’s export-heavy economy over the past decade and to cope with the sobering realities brought on by the global financial crisis, the Economic Daily News made the following editorial observations and comments about Taiwan’s unbalanced economic structure:

1) Taiwan should reduce its over dependence on exports. From 2000 to 2007, Taiwan’s average real fixed investments increased by only 0.6 percent annually, being basically stagnant. In order to maintain continuous growth in the economy and employment, Taiwan promoted export-led growth, which accounted for 70.2 percent of Gross Domestic Product (GDP) in 2007, a big jump from 49.2 percent in 1999. In the wake of the latest global recession, it should come as no surprise that Taiwan’s exports have been severely hit and overall economic growth has been dragged down to a record low of negative 2.53 percent.

2) Taiwan should diversify its exports instead of focusing on a few industries. During the last decade, Taiwan strongly supported the development of the semiconductor industry and the flat LCD industry, including electronic components, computers, electronic and optical products. Eighty percent of these products were destined for export. In recent years, these capital-intensive investments accounted for 70 percent of total investment across all manufacturing industries, but their added values only accounted for 28.8 percent of all manufacturing industries, while indirect taxes paid by these industries accounted for less than 5 percent of the total.

3) The export sectors should cut their reliance on imports. Although exports accounted for a high portion of Taiwan’s GDP, the raw materials, components, and part-manufactured products relied heavily on imports. Although Taiwanese firms have worked tirelessly to expand exports, more than half of their earnings were used to pay other countries for imports of raw materials and components.

4) Taiwan should expand its service sector. Over the past decade, Taiwan has hired more service industry employees, but their labor productivity increased by only 1.8 percent annually, less than half of the 3.9 percent in the manufacturing sector. The real value added by the service sector accounted for only 67.2 percent of total GDP in 2007, a drop from 68.9 percent in 1999. Apparently, the sluggishness in the service sector contributed in dragging down the growth of the economy as well.

Wide diversification not wise

However, in an interview with the Commomwealth magazine, Du Zi-chen, vice president of the Commerce Development Research Institute, disagreed with the Economic Daily News. With limited resources, Taiwan is not able to develop every industry. Based on its own competitive strengths, Taiwan must select some key areas to be its strategic focus, he said.

After the global financial downturn, Du noted, the world sees three new emerging trends: reshuffling within sectors, the emergence of developing markets, and the prevailing need to cut energy use and reduce carbon dioxide emissions. Taiwan should divide its resources in a ratio of 70:30, that is, to put 70 percent of its resources into continuing to develop its already strong foundations, while devoting 30 percent to developing emerging opportunities.

In regard to building on Taiwan’s solid foundations, Du said, Taiwan should continue promoting the semiconductor wafer foundry business, IC testing and the packaging industries. As for new opportunities, Du sees some quality markets emerging in the coming 20 years, that is, an estimate of 1.5 billion emerging consumers with per capita annual income growth ranging from US$1,000 to US$3,000 to US$10,000. Taiwan is certainly poised to take advantage of these new consumers with its close proximity to 70 percent of the markets and its track record of making a good competitive product, said Du.

How lucky will you be in the Year of the Tiger?

2010-02-11T09:20:00.000-08:00

The legend of 12 Chinese Zodiac animal signs was first noted in China in the first century. Chinese people believe that each zodiac sign represents a certain personality. At the beginning of each new lunar year, each zodiac sign faces a new fortune. This is a popular belief in Chinese communities worldwide.

Lunar new years are based on an annual cycle of 12 animals. In order, the animal signs are: rat, cow, tiger, rabbit, dragon, snake, horse, goat, monkey, rooster, dog, and pig. The Year of the Tiger will begin on February 14, 2010 and lasts until the next lunar new year on February 5, 2011. Any baby born within this period is a tiger.

A simple algorithm to calculate which zodiac animal sign you belong to is to divide your birth year by 12, the remainder, such as 4, 5, 6, 7, 8, 9, 10, 11, 12, 0, 1, 2, and 3 will represent a rat, cow, tiger, rabbit, dragon, snake, horse, goat, monkey, rooster, dog, and pig, respectively.

During a person’s zodiac year, the person must be particularly cautious in conversation and behavior so as to prevent any possible crisis. In Taiwan, on the eve of a person’s zodiac year, some people can be found in the temples performing a ritual of “safeguarding the zodiac star” in which they pray for safekeeping by giving their names, birth dates and addresses to the gods.

According to the World Journal, the luckiest animal signs for the Year of the Tiger are horse, goat, and dragon while tiger, monkey, pig and snake land at the other end of the spectrum.

In the year of the tiger, Feng Shui consultant Ms. Mak Ling-ling predicts that those people born in the years of the horse and goat can make a fortune, but it can’t be done with undue haste. Those born in the year of the dragon will get their normal incomes but don’t expect any windfall. Those born in the years of tiger and monkey will have big ups and downs with their fortunes. Monkey and pig signs have a better chance of making money away from their place of birth. Snakes won’t make a fortune, but they will get help from rich females.

Mak added those born in the year of the rabbit will get help from rich males during the tiger year. So they should ask for financial advice from older men or better yet, partner with someone more experienced in investments. Chickens should hold no high hopes in investment, so better jump out of the market upon making a small profit and not be too greedy. It is better for dogs to make their own individual investment and not team-up with others. Blessed by the “love star,” cows will find a good lover for marriage, which in turn will improve their fortunes and bring good connections.

Fortune teller Li Ming-chu points out, those born in the years of the tiger and monkey will have much trouble in the year of tiger. They will encounter lots of fluctuation and would be advised to consult with others before taking any action. Those born under the sign of the pig should be careful of potential adversaries and pay attention to their own health.

Metaphysician Long Cheng-tien expressed similar thoughts that in a tiger year people should stay put and work locally instead of moving around in their zodiac year. If you are a monkey, you should keep a low profile as not to attract jealousy. Monkeys will face changing lives, frequently traveling or transferring to other places to work.

Feng Shui expert Li Chien-jun noted that pigs will have lots of accidents in the year of tiger, but they will finally get unexpected help. Fortune teller Lin Chen-yi advises tigers and monkeys not to make speculative investments in the year of the tiger. A monk at Yu Yang forecasts that pigs, snakes, goats and rats can improve their fortunes this year.

Actually, even people under the same zodiac may have different fortunes. According to Chinese numerology, every person is born on a different date and time. So his or her fate is different. Feng Shui expert Tsai Cheng-lun said, “Numerology provides a direction, but it's not the only path."

Whether you believe in the characteristics and the fortunes embodied in each animal, take it with a grain of salt since no single factor should ever be used to make a decision.

Networking sites promote collective voice

2010-02-11T09:16:00.000-08:00

Online social networks and microblogging sites, where text is limited to just over 100 characters, are fast becoming the main way many people communicate in Taiwan. This is changing how high-tech and low-tech businesses reach out to consumers. Already, online communities are intermingling with the non-virtual world, with old classmates finding each other and specific groups banding together to share information. This new generation of social networking is offering people a collective voice, something not previously realized with mere blogging.

In a recent I-Survey of Eastern Online, surfing the internet ranked third as the most popular activity for Taiwanese users. The top activity for people ages 18-29 was watching television, followed by chatting. Seventy percent of the people between the ages of 13 and 29 said their friends know their web connections in blogs, MSN or Facebook, one of the most popular social networking sites.

Facebook age

Based in Palo Alto, CA, Facebook became popular in Taiwan upon introducing a Chinese-language version in 2008. The company and other microblogging sites have ignited the explosive power of social networking by organizing collective bargaining in purchasing gourmet foods to mobilizing disaster rescue workers. Its users span a wide range of age and social-economical boundaries, from elementary school kids to white-collar managers.

The Commonwealth magazine reported that the online game Happy Farm offered by Facebook was among the top most popular activities for Taiwanese users in 2009. Recently, this led Taiwan’s Premier to issue a warning to government officials not to indulge in playing this game during office hours.

Besides Facebook, Twitter and Plurk are also popular according to PC Home Online chairman Jan Hung-Tze

Collective bargaining and culture

In taking advantage of the collective online community, consumers are banding together to maximize their buying power. Taiwan’s group purchasing website “Ihergo” has accumulated about 260,000 members, mothers or grandmothers coming together to buy snacks, gourmet foods or nutritious products. The total amount of online sales of “Ihergo” reached NT$630 million (US$20 million) in 2009, a growth of over 400 percent from 2008.

Alvin Wood, co-founder of Plurk, said it is interesting that when he plurks “Good Morning” in Taiwan, he gets a dozen or even a hundred responses. This kind of phenomena would not happen in the United States. He feels that the collective culture is more appealing to Asians, who have a stronger desire to seek a connection with others. This is more so in Taipei than other Asian cities, said the Commonwealth magazine.

Taiwanese have been eager to forge interpersonal communications, which had been hidden in the traditional communities of the physical world, but can now be easily realized by plurking a “Hi” or playing an online game on Facebook.

Banding together to help

New social networking sites, once thought of as fresh online toys for the young, increased in importance during Typhoon Morakot and in its aftermath. In August 2009, Typhoon Morakot caused the worst flooding Taiwan had seen in 60 years. The disaster also led the Taiwanese to develop a massive online media. Internet surfers used Plurk and other social networks to transmit live updates of disasters to an online disaster center, supplementing the government's official disaster relief system.

During the recent Haitian earthquake, the American Red Cross made it easy to donate by asking people to simply text “HAITI” to 90999 and an automatic donation of US$10 would be deducted from the person’s cellphone bill. Online users also set up simple links to their favorite donations sites with personal appeals on their social networking page.

Why the fascination?

Commonwealth said that online users of microblogs need only spend five seconds to check out the title of a discussion topic, and if they are interested, they can connect to the official website. The initiative is entirely in their hands. These microblogs supplement the marketing gap left by websites (considered too mass market) and instant messaging services (too personalized and limited to one-to-one conversations). The contact scope of microblogging is smaller than that of websites or blogs, it is less costly, but enables a microblogger to focus on targeting consumers more precisely.
The Chinese-language version of Plurk has drawn over 300,000 members in Taiwan. A surprising array of enterprises, from breakfast shops to high-tech companies. Last May, even the 80-year-old Taiwanese opera troupe, Ming Hwa Yuan Arts and Cultural Group, began using Plurk to promote its new Taiwanese opera performances and to survey audience opinions.

Microblogging changing advertising strategies

The craze for social networks is gradually impacting existing advertising and media models. Taipei-based China Motor Corporation devoted 20 to 30 percent of its marketing budget to online social media, "almost equal to the amount spent on television commercials," asserted China Motor advertising director Jessica Kao.

Computer vendors like Acer Inc. and ASUSTeK Computer Inc. have extended their rivalry to the social networks. Acer has actively organized a Facebook community that is 2,690 strong and growing. "You would have to spend a lot of money to find that many Acer notebook PC fans," says one Acer marketing executive. The company used their Facebook page as a focus group to test consumer reaction to different notebook specifications and discovered that they liked smaller notebooks, which was markedly different from the specs originally drawn up by the company. Acer immediately adjusted its sales model. ASUS has also established a social media presence to generate anticipation for new products. It does so by engaging its users in discussions about new models.

High Tech Computer Corporation (HTC) has made an even more concerted effort to plunge into social networking, using Facebook to post videos of tests run on its latest handsets, and updating pages of product information on a daily basis. Its Facebook followers have grown into a community of 6,890 fans, who enthusiastically share their feelings about using HTC smart phones.

Consumer electronics firm BenQ has used the Plurk site as a marketing tool, claiming 1000 fans of the company’s latest news and events. One customer, who was unhappy with BenQ’s slow repair service complained directly at Plurk. BenQ’s online representative found it and responded to it right away. "If you're going to go after social media as a way to get in touch with consumers, you need to be 101 percent sincere and operate over the long term," said Luke Chen, the Project manager at BenQ. The worst thing would be for the business sector to just plunge into social media without staying engaged.

Taiwan to ban junk food ads on kid’s TV

2010-02-11T09:15:00.000-08:00

Taiwan’s Health Department is drafting a bill to help prevent childhood obesity by banning junk food advertising on children’s television programs. With 25 percent of Taiwanese children now classified as overweight, this is one way to counter the growing problem. The government is also seeking to be the first country in the world to impose a tax on unhealthy foods and soft drinks.

South Korea already has legislation in place stipulating that ads harmful to children should not be broadcasted between 4 pm and 6 pm. Britain also has similar laws, but Taiwan might be the only country to impose an added tax on high-calorie and low nutrition foods, such as carbonated soft drinks, sweets, cookies, chips and cakes.

In the United States, local governments already have an added “sin tax” on alcohol and tobacco products. This tax it used to offset the health problems that come from consumers who frequently use these products. Since obese children run the risk of contracting diabetes and heart disease later in life, a point can be made that junk food would also qualify for a “sin tax.”

TVBS television reported that the obesity rate of Taiwanese children is rapidly catching up with that of American children. At present, the obesity rate of Taiwanese boys ranges from 25 to 30 percent and that of Taiwanese girls is 20 to 25 percent. The numbers are not too far behind the US where 30 percent of American children are considered overweight. Although the numbers are alarming in themselves, the jump within just ten years is even more so. The obesity rate of Taiwanese boys between the ages of 2 and 18 was only 6 percent in the year 2000.

Compounding the problem is the more sedentary lifestyle of many people today. Playtime use to mean going outside to do physical activities, but nowadays, children are more likely to be found watching TV or playing video games indoors.

In addition to tackling childhood obesity, the bill, which will be passed in the Legislative Yuan, hopes to regulate the hazards associated with chewing betel nut, promote oral healthcare and reduce the misleading and harmful spread of cigarette marketing, especially targeting children and young adults.

China Airlines at 50

2010-01-15T10:20:00.000-08:00

China Airlines (CAL) was founded in Taipei, Taiwan, in 1959, with a fleet of two PBY-5 amphibious aircraft, mostly used for military missions and chartered services. With the help of the Taiwan government, CAL gradually developed its first domestic flights between Taipei and Hualien, and its first international routes between Taipei and Saigon (now Ho Chi Minh City), Vietnam. In 1970, CAL started its trans-Pacific flights to San Francisco, California.

As carrier for the Republic of China (Taiwan), CAL had its aircraft painted with the national flags and colors (red-blue-white). In 1993, CAL became a publicly traded company on the Taiwan Stock Exchange. In 1995, CAL updated its image by adopting a “plum-blossom” logo instead of Taiwan’s national flag and colors. This made it possible to continue flying to Hong Kong and Macau, both of which were about to return to the People’s Republic of China.

With the global airline recession last year, CAL continued to profit by concentrating on its golden routes between Taipei and Hong Kong. On December 16, CAL celebrated its 50th anniversary with a group of 10,000 employees and a global flight operation network of 87 cities in 27 countries.

The pictures below reflect some of the historical landmarks in CAL’s years of operation.

CAL pilots and crew seen with aircraft PBY-5 (1959).

Chiang Ching-kuo, before assuming Taiwan's presidency, with CAL stewardesses (1969).

Yen Chia-kan, before becoming president of Taiwan, and his wife with CAL stewards and stewardesses (1969).

CAL aircraft painted with the national flag (1967).

CAL aircraft painted with a plum-blossom logo (2007).

CAL stewardesses today

Tzu Chi lends helping hand to Haiti and others in need

2010-01-15T10:19:00.000-08:00

On January 12, Haiti suffered a devastating earthquake that has crippled the entire nation. Countries around the world have rushed to send rescue workers and aid to help the people of Haiti. Among the humanitarian workers, in their distinctive white and navy blue outfits, you will see Taiwan’s Buddhist Tzu Chi volunteers. As one of the world's biggest volunteer-based organizations with many seasoned disaster volunteers, you can be sure that they have already mobilized to collect funds to supply necessities to the victims of this latest natural disaster. And, when other countries eventually begin to pull out of Haiti, don’t be surprised when you continue to see Tzu Chi still there offering their own brand of compassionate care.

This month, Taiwan Buddhist Tzu Chi Foundation opened its new facilities for the Northwest region at 2355 Oakland Street, San Jose. As Taiwan Insights walked through the sprawling three-building complex with Mr. Minjhing Hsieh, he talked enthusiastically about the expanded services that can now be offered thanks to the additional space. Hsieh is the executive director of the Northwest region and like many at Tzu Chi, he is also a full time volunteer.

Tzu Chi is Taiwan’s largest charity. Started by a Buddhist nun in 1966, the foundation has offices in 47 countries and has five million sponsors. Tzu Chi means “compassionate relief” in Chinese and it is something the Foundation’s one million volunteers strive for when working in: charity, medicine, education, culture, international relief, bone marrow donation, environmental protection and community volunteerism.

After major disasters, you will see neatly dressed Tzu Chi volunteers working side by side with other international relief organizations. After Hurricane Katrina hit New Orleans, Tzu Chi arrived to help. Within a matter of months, they gave away US$3 million to 17,000 families. In many cases, after other organizations have left, Tzu Chi remains to help rebuild. Three days after Sri Lanka’s devastating Tsunami in 2004, Tzu Chi flew in twenty medical doctors, 2,000 pounds of rice and 300 tents to the heart of the damage. Six months later, Tzu Chi volunteers were still there building 649 new homes at the cost of US$100 million.

Master Cheng Yen, Asia’s Mother Teresa

Tzu Chi was founded by Dharma Master Cheng Yen. Considered the “Mother Teresa of Asia,” she has been a repeated nominee of the Nobel Peace Prize.

Born as Wong Chin-yun, she was adopted by her uncle as a baby and grew up to be a devoted daughter. At the age of 15 , her mother suffered from acute gastric perforation, an extremely painful condition. Surgery was an option, but often deadly and not very successful in those days. Praying and chanting “Compassion, Buddha,” she promised to become a vegetarian and to give up 12 years of her life if her mother was spared. Her mother would later make a full recovery without surgery and live to a ripe old age. Upon becoming a nun, Chin-yun was given a Buddhist name of “Cheng Yen.”

In 1966, after realizing there were no organized Buddhist charities, Master Cheng Yen started the Buddhist Tzu Chi Merit Association. She asked her initial followers, 30 housewives, to save fifty cents a day (about two US cents) in bamboo piggy banks. By pooling their savings, they were able to start a charity fund to assist the poor. Much of Tzu Chi’s successes can be attributed to Master Cheng’s ability to see a need and to fulfil it, despite the insurmountable obstacles in the way. One example of this can be seen in Tzu Chi’s efforts to build its first hospital.

Upon realizing that the root of poverty often stems from ill health, Master Cheng decided to focus on medical care and set out to build a hospital in Hualien. Estimated to cost NT$800 million (US$25.2 million), many thought the hospital was an impossible dream. At that time, the annual Hualien County annual budget was only NT$100 million (US$3.1 million). It would take her seven years to realize her goal, but in 1986 the hospital was finally completed. In order to attract quality healthcare professionals to the area, the Foundation would later build schools, homes and a medical school. In 2005, Tzu Chi completed its sixth hospital on the island.

The Foundation growing internationally

In the United States, Tzu Chi is divided into nine regions overseeing 62 offices and 19 academies. In Tzu Chi’s Northwest (TCNW) region, the Foundation has 13 offices and four Academies offering a variety of classes and services. To see their scheduled programs for the Northwest, please visit: www.tcnw.org.

Each week, Tzu Chi volunteers work with the homeless in San Jose, offering food, clothes and haircuts. They also make weekly visits to convalescent homes throughout their regions. During some weeks in summer and winter, they can be found distributing up to 7,000 pounds of food in San Francisco’s Chinatown.

As part of character building, Tzu Chi also offers classes on Master Cheng’s spiritual teachings. Even though the organization espouses Buddhist teachings, volunteers need not be Buddhist nor are most of the people they serve. In fact, the majority of people Tzu Chi serves outside the classrooms are African-Americans, Latinos and Chicanos. With branches in the Central Valley, many of those helped are migrant workers.

Although Tzu Chi’s has expanded by offering more programs and services, one of its main focuses is still in offering medical care to the needy. And this is one of Hsieh’s bigger tasks ahead as he eagerly tackles the opening of a low cost medical clinic in their new facility. Currently, as part of its medical outreach programs, TCNW operates The Great Love Medical Van, which offers dental care in the Bay Area and Central Valley. The van is a full service dental office, containing sophisticated x-ray and computer equipment.

Needy schools get a boost

Shirley C. Leong is another example of a dedicated volunteer. A board of director for TCNW and a former director of the San Francisco branch of Tzu Chi for ten years, she is particularly excited about the Foundation’s work in San Francisco schools. In 2004, Tzu Chi went to John Muir Elementary School as part of the Foundation’s Give-A-Book project. Located on Oak and Webster Streets, the majority of the school’s students came from low income homes, with some living in shelters. Soon after visiting the school to give away books, John Muir’s principal called her to see if Tzu Chi could put together fifty bags of daily use items for the kids. Since then, Tzu Chi has worked with John Muir to provide more daily use bags, school uniforms, blankets, sleeping bags, “love bags” of weekend snacks and other needs. Eventually, Tzu Chi started a Friday pantry program at certain schools to distribute two thousand pounds of food each week.

In working with schools, Tzu Chi has gotten permission to give short character-building lessons to classes as well. One basic Jing Si Aphorism by Master Cheng that they try to impart to the kids is to “say good words, have good thoughts and do good deeds.”

As part of TCNW’s environmental program, students at John Muir are taught the importance of recycling and every class is given a recycling box. Each Friday, Tzu Chi volunteers collect and count the recycling. The class that collects the most is then rewarded with an ice cream party. It is a good way to teach environmental responsibility and for the classes to earn money for field trips. In 2008, when Cyclone Nargis struck Burma, the students showed compassionate relief by donating their US$500 recycling money to help Burma.

Tzu Chi is now working with Malcolm X in Hunter Point, another underperforming school in one of San Francisco’s poorest areas, with similar programs. Today, John Muir is a magnet school and considered a “model recycling school,” Leong said with pride.

Providing material and emotional needs

What makes Tzu Chi unique is their donor-base. According to Hsieh, “The bulk of the support comes from the bottom. A lot of people on the lowest rung save or even collect cans to recycle and donate.” Added to that, it is a volunteer-heavy organization, which is extremely well organized and well trained. In order to be certified as a Tzu Chi volunteer, you need to undergo two years of training.

In the Bay Area, Tzu Chi has a Memorandum of Understanding (MOU) with the International Red Cross. In time of disaster, such as a fire, flood, or earthquake, Red Cross professionals are the first response. After they assess the situation, they will often call Tzu Chi volunteers to fill in the gaps in services. Whereas the Red Cross might be able to set up beds in schools or give some aid for temporary shelter, Tzu Chi can be on hand to give away debit cards, clothes, food and blankets.

As a non-profit organization that does not accept government money, Tzu Chi is not mired in bureaucracy and can act quickly to free up needed cash. More importantly, “we are faith-based, so we carry a humanistic characteristic in our delivery of service. We offer respect to the people who receive our service,” Hsieh said. Tzu Chi tries not only to supply the material needs but also considers the individual’s emotional needs.

Although the Foundation’s biggest growth has come from Southeast Asia, this might change now that Tzu Chi is a formally approved organization in China. The Foundation has worked in China since the 1991 flood, but it wasn’t until last year that Beijing gave Tzu Chi this rare recognition. This has allowed Tzu Chi to begin a dramatic growth spurt in China as the Tzu Chi Charity Foundation.

Forty-four years ago, a Buddhist nun had a desire to start a charity. Since then, it has grown into the biggest charity in Taiwan with satellite television stations, six hospitals, 40,000 volunteers and a national recycling program that generates US$10 million a year. In the United States’ Northwest region alone, Tzu Chi has an impressive number of standing programs and volunteer opportunities. It maintains a presence in many corners of the world and stands ready to respond to the next natural disaster or humanitarian crisis.

Chinese zodiac painting exhibition at SF Public Library, now – Feb 18

2010-01-15T10:18:00.000-08:00

To celebrate the Year of the Tiger, the San Francisco Public Library and the Taipei Economic and Cultural Office in San Francisco have compiled an exhibition of the twelve zodiac animals in a 21-painting display. Each animal has special characteristics that are reflective of the animal and the person born under that sign. The 12 years are represented by Rat, Ox, Tiger, Rabbit, Dragon, Snake, Horse, Ram, Monkey, Rooster, Dog and Pig.

The Lunar New Year is the most important holiday in Taiwan. It is a 15-day long festival filled with family reunions, abundant food, new clothing and the expectation of a long vacation. It is a chance for people to start anew by paying off debts and forgetting old grudges in favor of a happier new year. On new year’s day children awake to good wishes from their elders and red envelopes filled with lucky money.

Celebrate this Chinese New Year with a visit to the Main Library of the San Francisco Public Library (100 Larkin Street at Grove). The exhibit will be in the Chinese Center on the third floor until February 18.

On Friday, February 12, come enjoy an afternoon of Taiwan films, starting with a documentary about Taiwan’s Ecological Ambience at 2:00 pm and a feature film Cape No. 7 at 2:50 pm.

Commemorating the Flying Tigers in Taiwan, China and the US

2010-01-15T10:17:00.000-08:00

On December 21, the American Flying Tiger Historical Organization (FTHO) announced the start of a campaign to raise US$400,000 and to collect historical mementos for a Flying Tiger Heritage Park at Yang Tang Airport in Guilin, Guangxi, China. The exhibit will honor the friendship between the Chinese and American pilots who fought together during World War II.

During the press conference held at Half Moon Bay, California, FTHO chairman James T. Whitehead, Jr. Major General USAF (Ret.), president Larry Jobe, director K.C. Ma, senior advisor Michael Bianco, and volunteer Steve Martin talked of their aspirations for the park. In the World Journal, Bianco spoke of his plan to purchase a Curtiss P-40 Warhawk, the fighter aircraft the Flying Tigers used during WWII, to display at the Flying Tiger Heritage Park. The Curtiss P-40 Warhawk planes made an indelible impression with their shark’s teeth logos and a 12-point sun, the symbol of the Nationalist Chinese Air Force.

During World War II, the Flying Tiger pilots flew out of Half Moon Bay Airport to deliver military supplies or join the Nationalist Chinese Air Force in fighting the Japanese. After more than 60 years, there are still 29 aircraft flying and about 30 in museums across the United States.

Credited with creating the unit was US Army Air Corps officer Claire Lu Chennault, who was the military aviation advisor to Chiang Kai-shek in the early days of the Sino-Japanese War.

During the first years of WW II, Washington took a neutral stand. The American military pilots “resigned” their commissions to serve in the new unit as volunteers or private citizens. The group was formed in mainland China, staffed with Chinese and American pilots and support crew, and led by Chennault under the general command of the Nationalist Chinese Air Force. As a retired officer, Chennault had no problem acting as a private citizen in command of the volunteer pilots.

After the Japanese attack on Pearl Harbor in December 1941, the United States placed more responsibility on the Flying Tigers. In July 1942, the American Volunteer Group (AVG) was disbanded and became the US Army Air Corps’ China Air Task Force, and Chennault was given the rank of brigadier general. As such, the Tigers were also known as AVG, the China Air Task Force or the 14th Air Force.

The Flying Tigers did a great job in protecting southern China against invasion by the Japanese. American pilots who were forced to bail out of their damaged aircraft often hid with the help of Chinese villagers. Knowing this, Japanese soldiers showed little mercy toward villagers suspected of aiding Americans, chopping off the fingers of Chinese suspected of hiding pilots. On the flying jacket of the Tigers, a patch in Chinese proclaimed, “This foreigner has come to the aid of China. Let the government and the people jointly protect him.”

Working together towards a shared interest and a desire for peace, a strong bond was forged between the United States and the Nationalist Chinese. Even after the Nationalist Chinese government moved to Taiwan, the friendship survived. One of the most visited monuments in Taiwan was dedicated to Chennault and the Flying Tigers in Taipei’s New Park, which was later relocated to the Air Force Base in Hualien.

Just a year ago, US Congressman David Wu (D-Oregon) honored Major Arthur Chin, one of the Tigers from the Oregon area. He was born in Portland, Oregon in 1913 to a Chinese father of Cantonese origin and a Caucasian mother of Peruvian background. He joined the AVG and later integrated into the Nationalist Chinese Air Force to fight the Japanese invasion in the late 1930s. He destroyed six Japanese aircraft and helped his comrades defeat another three. One day while flying, he was hit by three Japanese fighters, bailed out of his plane by parachute, and was seriously injured. With the help of Madame Chiang Kai-shek, Chin was able to return to the US for medical treatment, according to Taipei-based Central News Agency.

He returned to his hometown of Beaverton, Oregon and worked in the post office there for the next thirty years. After his death in 1997, he was immortalized at the Hall of Fame at the American Airpower Heritage Museum in Midland, Texas as the first American ace, and an officially recognized Chinese American World War II hero.

In January 2008, Congressman Wu introduced a House Resolution to rename the post office where Chin used to work as the "Major Arthur Chin Post Office Building.” The resolution was unanimously approved by the House Committee on Oversight and Government Reform and signed into law by former President George Bush Jr.

In September 2009, Taiwan’s Defense Minister inaugurated a “Chinese War Fighter Ace Arthur Chin Exhibition” at the Air Force History Museum in southern Taiwan, and also renamed the student activity center of the Air Force Academy as the “Arthur Chin Building.”

This January, relics from the Flying Tigers will be on display in Taipei. The fundraiser hopes to build a permanent exhibit at the Flying Tigers Heritage Park in 2011.

Beef issue tests US-Taiwan relations

2010-01-15T10:16:00.000-08:00

On January 5, Taiwan’s Legislative Yuan passed an amendment to the Food Sanitation Act banning the import of “potentially high risk” beef products from areas where mad cow disease has been documented over the past decade. Despite President Ma Ying-jeou’s worries that a ban would strain US-Taiwan ties, the vote was unanimous.

Ruling and opposition party legislators reached a consensus at the end of last December to amend the nation’s Food Sanitation Act, restricting the import of certain US beef products amid widespread concerns about the possibility of contracting mad cow disease. The Ma Administration had warned that passing such a bill could constitute a breach of the US-Taiwan protocol signed last October allowing beef imports, further damaging ties with the US as well as hurting Taiwan’s international credibility.

Under the revised law, “potentially high risk” substances include cattle skulls, brain, eyes, spinal cord, offal, ground beef and other related beef products. The amended law also prohibits beef products from cattle older than 30 months from regions in which mad cow disease was found in the last 10 years from entering the island.

The controversy over US beef arose following the announcement by Taiwan’s Ministry of Health that bone-in US beef, offal and ground beef would be imported based on the newly signed US-Taiwan protocol.

Unexpected opposition at home

When the first case of mad cow disease was confirmed in the US in 2003, Taiwan and many other countries imposed an immediate ban on imported American beef products. In 2005, the Taiwan government under the Democratic Progressive Party (DPP) negotiated with the US and decided to partially allow beef imports. Since then, Taiwan has only allowed the import of US boneless beef from cattle under 30 months old, produced by certified slaughterhouses without specified risk materials.

After taking office in May 2008, President Ma immediately started talks with the US to further open up Taiwan’s market for American beef products. Based on the South Korean model, the Ministry of Health negotiated with Washington on the matter for about eighteen months. Upon its conclusion, the Ma Administration approved the signing of the protocol on October 23, 2009 to allow the import of bone-in US beef, offal and ground beef.

With the news of the signing, DPP legislators lodged a strong objection and began to amend the Food Sanitation Act to overturn the protocol signed between the executive branch and the US government. Civil rights activists and consumer protection groups also initiated a referendum to reject the beef protocol.

Ma respects lawmakers’ decision

With President Ma’s strategy of “making peace with China, befriending Japan and embracing the US” in place, Taiwan signed twelve agreements with China after his inauguration, but failed to reach any agreement with Washington. In order to make further headway, the Ma administration decided to open up the issue of imported US beef.

Upon hearing of the amendment, President Ma held a press conference hoping that the impact of the Legislature’s action on US-Taiwan ties would be limited to the trade of agricultural products only. He emphasized that the beef protocol is still valid and bone-in beef from cattle under the age of 30 months can still enter Taiwan. The banned parts accounted for less than 2 percent of the tota US-Taiwan beef trade.

President Ma acknowledged that his administration should have tried harder to communicate and get the buy-ins from the Legislative Yuan and the public about the protocol. To calm worries of potential health risks posed by American beef, the Health Ministry has adopted a strict control to test imported offal and ground beef in the last two months. He noted there is no need to further amend the law since the status quo contained enough protection. However, since the Legislative Yuan still insisted on going ahead with the amendment the president decided to respect the Legislature’s position.

Business as usual

Following five years of suspension, the first batch of US bone-in beef will arrived in Taiwan on January 15, and undergo complete inspection within three days.

Overall, Taiwan’s objections over imported US beef has been conveyed via orderly demonstration and legislative action, unlike in Korea, where protests violence have resulted in repeated clashes with riot police.

Despite Washington’s disappointment, it has been decided not to link the beef issue to the arms package to Taiwan, which is said to include UH-60M Black Hawk utility helicopters, the remainder of an ongoing Patriot PAC-3 missile-defense package, an initial design study for diesel submarines, and the second phase of a sophisticated command and control system.

Although Taiwan is the 6th largest US beef export market, according to statistics from the U.S. Meat Export Federation (USMEF), beef exports to Taiwan in 2008 totaled only US$128 million. It is just a drop in the bucket in comparison with the amount of US arms exports to Taiwan.

Friedman: Taiwan’s Innovativeness is its best resource

2010-01-15T10:15:00.000-08:00

Renowned New York Times columnist Thomas L. Friedman praised the 23 million people of Taiwan for having accumulated the world’s fourth-largest foreign exchange reserves despite their nation’s lack of natural resources and the high frequency with which they suffer from the effects of natural disasters. Attributing the achievement to the wealth of talent found on the island, Friedman said innovation is the most crucial renewable resource that Taiwan possesses, as invention, know-how and entrepreneurial spirit follow closely behind. The three-time Pulitzer Prize winner, who is currently on a two-day visit to Taiwan, made these remarks during a January 11 speech at the Presidential Office in Taipei.

Noting that Taiwan is an expert in the field of renewable energy, the columnist encouraged the nation’s people to make the most of this advantage and develop more clean-power initiatives, so that they can continue to play a leading role in this new green revolution.

Friedman went on to say that Taiwan has the lead in information technology, but that now is the time to step up efforts to develop energy technology in order to “outgreen” competitors. As geographically proximate “Red” China looks one day to become “Green” China, Taiwan is well-poised to take advantage of the opportunities presented by this huge market.

During Friedman’s time with President Ma Ying-jeou, the president praised him as a global opinion leader. Through his books and articles, Friedman has brought about a greater consciousness of the problems posed by global warming and the solutions presented by the use of “green” forms of energy that reduce CO2 emissions. The president also stated that Taiwan has seen concrete results in implementing policies that address these two issues, which helped reduce CO2 emissions by 4.4 percent in 2008 compared with the previous year, bringing them back down to their 2005 level. In addition to promoting related legislation, Taiwan has also revised its goals for reducing CO2 emissions, and now seeks to have emissions in 2020 be at the 2005 level and those in 2050 be at half of the 2000 level.

While meeting with Premier Wu Den-yih, Friedman noted that at the time of his first visit to Taiwan 13 years ago, the region was one of the world’s hottest flashpoints, but that the situation today is completely different. Cross-strait relations have undergone a silent revolution thanks to interaction between the people on both sides. Such an experience can serve as a reference for many other nations across the globe. Moreover, the two sides have achieved significant progress without needing the intervention of other nations. Friedman concluded that mixing person-to-person contacts with mutual economic complementariness is a recipe for long-lasting peace.

Taxation agreement stalled at Taiwan-China talks

2010-01-15T10:14:00.000-08:00

On December 22nd, Taiwan and China signed another three agreements covering fishing crew cooperation, agricultural quarantine inspections and regulations covering industrial products. What generated more news, however, was not the three agreements that were signed, but the fourth one that was shelved, pertaining to double taxation. Never in the previous three rounds of the carefully scripted Chiang-Chen talks have the two sides put a planned agreement on hold just days before the two negotiators met formally to seal the deal.

This phase of the Chiang-Chen talks, between Chiang Pin-kung of Taiwan's Straits Exchange Foundation (SEF) and his Chinese counterpart Chen Yunlin with the Association for Relations Across the Taiwan Strait (ARATS), took place in Taichung, Taiwan.

Local media cited a number of factors contributing to the last minute change. Some reports mentioned a possible sovereignty-related dispute. Others suggested mounting pressure from Taiwanese-invested companies in China worried that a new agreement might lead to higher taxes.

Taiwan has signed 17 taxation agreements with other countries, the main purpose of which are to avoid double taxation and to determine the taxation jurisdictions so that businesses and individuals can evaluate their tax costs, reduce their tax burdens, and promote mutual investment and business development. It is important for Taiwan to maintain an attractive taxation policy in order to lure more multi-national companies.

According to the Economic Daily News, the proposed tax agreement is based on the Organization for Economic Cooperation and Development (OECD) standard, which uses a "state to state" framework. The two sides were reportedly unable to agree on the language, given how the sovereignty issue affects the taxation jurisdiction of each government.

Meanwhile the United Daily News reported that Taiwan’s Premier Wu Den-yih said the delay in signing the tax agreement does not involve the sovereignty issue, but rather, China changing its mind. China now wants taxation to be based on the place which generates the income. Premier Wu explained the two sides had originally agreed that the taxation would be based on the place of residence. For Taiwanese who do business in China, Taiwan is their residence. But China later proposed a different view where taxation should be based on the original place where the income is generated. So both sides agreed to put off the signing of the agreement until consensus could be reached.

A United Daily News report attributed the delay to mounting pressure from Taiwanese doing business on both sides of the Taiwan Strait who do not want their tax information “exposed.” Taiwanese business people are worried that the Taiwan government would share their detailed tax information with the Chinese authority, which might be “misused.”

In an editorial, the Taipei-based China Times said taxation is an obligation for businessmen no matter whether they are in Taiwan or China. The paper urged the government to be clear about why the taxation issue was not raised during the recent meeting.

Lai Shin-Yuan, Minister of the Mainland Affairs Council (MAC), noted in an interview with the United Daily News that the key issue in not signing the agreement lies in “tax benefits” or in plain language, money. She said delaying signing an agreement is a natural, normal and mature form of expression in an institutionalized negotiation between Taiwan and China. It is not just signing for the sake of signing. The two sides have reached consensus on key contents, but still need more time to iron out some technical issues.

On the three agreements that were signed, the fishing crew cooperation addresses issues that have long been in contention between fishermen on both sides. The agricultural quarantine inspection and industrial products inspection are measures necessary with increasing trade volumes of agricultural and industrial products. During the talks, the opposition Democratic Progressive Party observed the agreements and implementation carefully to ensure that the government did not lessened Taiwan’s interest in these talks.

Despite the advances of the Chiang-Chen talks, a greater problem on the horizon might be the lack of a FTA-like economic cooperative framework agreement (ECFA) with China. The recent free trade agreement between the Association of Southeast Asian Nations (ASEAN) and China that took effect at the start of the 2010 could cost Taiwan dearly. According to Taiwan’s Chung-Hua Institution for Economic Research, Taiwan bears the uncertainty that its industrial production value may drop by US$2.46 billion. Once ASEAN is expanded to include Japan and South Korea, Taiwan’s overall industrial production may fall by as much as US$9.99 billion.

Taiwan hopes to enter formal talks with China in mid-January with the aim of hammering out an ECFA May or June 2010.

Taiwan prepared for H1N1 with domestic vaccine

2010-01-15T10:13:00.000-08:00

Since December 15, Taiwan has vaccinated close to 18 percent of its total population against H1N1. With a National Health Plan and the central government buying the vaccine and coordinating the different phases, the island was able to begin innoculating the general public three months ahead of scheudle. Taiwan’s overall H1N1 vaccination plan went far smoother than in the United States, which left many priority patients in the Bay Area still to receive the vaccine by the end of the December.

Taiwan’s vaccination campaign

Taiwan began vaccinating the most vulnerable on November 1st. The population was segmented into twelve groups, with those with weaker immune systems given the vaccination first. Included in that group were typhoon-affected victims, medical personnel in charge of disease control and prevention, and pregnant women. In subsequent phases, the vaccine was offered to infants, younger children and seriously ill patients. Older school children in elementary, junior and senior high were also innoculate at their schools.

The last to be vaccinated were healthy people from 25-49 and healthy adults between 50-64.The government had planned to vaccinate the last group in March, but realized they were ahead of schedule and could vaccinate everyone much sooner than expected.

Thus on December 12th, Taiwan had a “1212 vaccination campaign” which allowed anyone working or living in Taipei to get vaccinated at designated public places, local clinics and hospitals. In the United States, the distribution of the vaccination was somewhat more complicated, with a mix of federal, state, county and the private sector participating to innoculate patients. Although some states and counties were making it availiable to the general population at year’s end, other regions were still trying to take care of their priority groups.

Taiwan’s government ordered 15 million doses of H1N1 vaccination, five million from Novartis, a multinational pharmaceutical factory and another 10 million from Taichung-based Adimmune Corp., Taiwan’s own human vaccine manufacturing company. The Department of Health had set a goal of vaccinating at least 12 million before Chinese Lunar New Year in mid-February. Although not everyone would be vaccinated, vaccinating half of Taiwan’s population would be enough to prevent a crippling pandemic.

Schools given guidance on closure

Vaccinations were conducted on a school by school basis, so the schools had records of when vaccinations were administered and the percentage of students given the vaccine. This was important information since the antibodies develop about 14 days after the vaccination is received. In Taiwan, elementary school children began getting their vaccinations on November 16th, followed by junior high and senior high school students on November 23rd and November 30th, respectively.

In order to prevent a pandemic, Taiwan also used the “325” guidelines for closing schools. If two students in the same class were diagnosed with H1N1 within three days, then the school was closed for five days. However, if an individual student had flu-like symptoms, but 80 percent of the student population had been vaccinated more than 14 days previously, then the school would not close, but the sick students would be sent home instead.

By the end of November, Tawain estimated that 602 H1N1 patients had been hospitalized with the infection and 29 have died.

Adimmune Corp.: Taiwan’s new vaccine superstar

Adimmune’s ability to supply ten million vaccines was a big success for the whole island. In the United States, one of the problems with the shortage and delay of the vaccine supply was the lack of US vaccine producers. GlaxoSmithKline, a Canadian company, faced pressure to supply domestically before fulfilling US needs. Having a locally produced vaccine company like Adimmune Corp. was very important to meeting and exceeding the expectation of Taiwan’s H1N1 vaccine needs. It also made it possible for Taiwan to help other countries by donating 500,000 doses of H1N1 vaccine to the World Health Organization

In producing the vacinnes in six months, the company started from scratch, passed all the regulatory tests and succeeded in developing a world-class product. It was a big gamble for Adimmune that paid off. After being in debt to build its NT$3 billion (US$93 million) vaccine factory, Adimmune was able to win the government contract to produce the H1N1 vaccine for Taiwan. With the factory now in production, Adimmune has the capacity to produce 30 million doses annually. And given the shortages in the United States, it looks like they are in the right place to fill a niche market.