Taiwan Unable to Retain Enterprises Competing to Invest in the US

 Taiwan Unable to Retain Enterprises Competing to Invest in the US

United Daily News Editorial (Taipei, Taiwan, ROC)

May 12, 2017

 Translation of an Except

Hon Hai Chairman Terry Gu met with Trump in the White House a couple of days ago, showing that his investment in the United States has entered a crucial moment. Recently, news about Taiwan businesses’ plans to invest in the US include TSMC, the Formosa Plastics Group, E United Group, and CPC Taiwan; deducting CPC Taiwan, the other four enterprises’ investments totaling over NT$1.3 trillion, far exceeding the scale of the Tsai government’s eight-year, NT$ 880 billion (approx. US$29 billion) Forward-Looking Infrastructure Plan.

TSMC and Hon Hai rank first and second in Taiwan stock market value, the four corporations under the Formosa Plastics Group, on the other hand, respectively, occupy third and seventh to nineth in Taiwan stock market value. In other words, among the top ten heavy-weight enterprises in Taiwan stock market value, six have decided or are in the process of assessing to make investments in the United States. Once these top corporations invest in the United States, their mid- and downstream subcontractors will have to follow suit one after another. Officials talk about, in an open-minded manner, "looking at the matter in a positive light," seemingly not to mind; however, does Taiwan truly not need the manufacturing industry?

For the United States’ actions to court investments, Mainland China immediately raised vigilance; Premier Li Keqiang immediately went to visit Hon Hai Group's plant in Zhengzhou, hoping that Hon Hai will keep its "high-end R&D and the whole industry chain" in the Mainland. In comparison, the Tsai government has been focusing its effort on pushing for the government’s Forward-Looking Infrastructure Plan, while responding coldly to the exodus of private sector investments. Honestly, we cannot detect a hint of enthusiasm in the government’s push for economic revival.

Cabinet ministers "looking in a positive light" at Taiwan businesses setting up facilities overseas, while not facing squarely the question of the manufacturing industry not investing in Taiwan; this is a serious misjudgment and error. The government cannot resolve issues that intervene in business investments, such as land, water and power, environmental assessments, confrontations, and administrative sloth, and, of course, it cannot prevent businesses from leaving. However, when news broke about TSMC, Hon Hai and other businesses investing abroad, we did not see any officials trying to keep these investments in Taiwan; instead they even said it was a good thing. May we ask where in the world is the government’s ambition to push for economic revival?

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