Broaden the Mindset Beyond Elections for Industrial Development
By Douglas Hsu
United Daily News, November 30, 2021
Recently, I read in Forbes a listing of the richest billionaires in 2021 in terms of net worth. This year, 2,755 individuals made the list, the largest number in history. The number of people from mainland China and Hong Kong is 698, while 47 people come from Taiwan. It shows the growing and declining of the economic strength of the two sides of the Taiwan Strait, and the progress of the mainland cannot be ignored.
While mainland China is rapidly rising, on the contrary, in Taiwan’s society, the four referendums have become the focus of attention now. Next year, the third-time nine-in-one local elections will be held. Concern over the upcoming referendum and elections has occupied most government officials and politicians, and thus lack of time in discussion about Taiwan’s economic policies and industry planning for the next three, five, or even ten years. This is exactly what I worry about. I am very anxious. Taiwan should think more about the future of its industries because policy is the direction indicator of the allocation of private sector’s resources.
In recent years, Taiwan’s arbitrary opposition to everything associated with China seems to have worsened, which is quite worrying. With a global view, multinational companies have an increasingly important assessment of the mainland Chinese market. In the "2021 China Business Environment Survey Report" released by the U.S.-China Business Council, a think tank in Washington, 87 percent of the U.S. companies interviewed stated that they had not moved any part of the supply chain out of mainland China in last year, and 43 percent of the surveyed companies plan to accelerate their expansion of investment in the mainland in the next year. Although the trade war between the United States and China remains, American companies are still actively increase their investments in the mainland.
Recently, cross-strait politics has a free-fall to zero interaction, and relations have been freezing, yet cross-strait economic and trade exchanges have become more and more heated. The Ministry of Finance announced that Taiwan’s import-export trade to mainland China and Hong Kong has not only increased to $154.6 billion in the first ten months of this year, but also the proportion of exports is reaching to a record high (42.5 percent), and it has continued to grow. Until October of this year, Taiwan’s trade surplus with the mainland expanded to $86.25 billion, a clear increase from $70.5 billion in the same period last year. Looking at these statistics, it is undeniable that the mainland Chinese market is important to Taiwan's economic development and trade growth.
However, under the current political atmosphere in Taiwan, certain public opinions make Taiwanese companies invest in the mainland as if it is a sin. In fact, they don’t need to. Taiwan's industries do not need to stay out of the world's trends. They should have a reasonable understanding and judgment on the mainland Chinese market. They should not let their ideology prevail and override everything else.
Over the past few years, many organizations in Taiwan have conducted numerous public opinion surveys on cross-strait relations among the Taiwanese people. Among them, the option of "maintaining the status quo" has always been the mainstream opinion of the largest number of Taiwanese people. Like most Taiwanese, I hope that cross-strait relations "maintain the status quo." I have always opposed Taiwan Independence and supported the 1992 Consensus advocated during the Koo-Wang Hong Kong talks. I also agree with the United States and the international position and support the one-China principle.
Nowadays, Taiwan’s political atmosphere is mainly focused on elections, and politicians' major concern is about votes, instead of a broader vision of planning an industrial strategy. Faced with opportunities of the mainland Chinese market with 1.4 billion people, Taiwan’s industries have been deliberately suppressed in the “anti-China” atmosphere, is this in line with Taiwan’s long-term interest?
Taiwan must look to the future. As a senior industrial professional, I deeply understand that Taiwan’s industries have great advantages, yet we need to pre-plan the layout for the next generation. Based on simple but pure mindset, I understand that I am unable to solve the predicament between the two sides of the Taiwan Strait, yet I do hope that cross-strait peace and normal exchanges and interactions can be maintained. How to create an atmosphere of cross-strait peace in the future and create the best interests for the people will rest upon the wisdom of our leaders.
The author is chairman of the Far Eastern Group.