Investing in Taiwan: Lai Ching-te’s Wishful Thinking

 Investing in Taiwan: Lai Ching-te’s Wishful Thinking

China Times Editorial (Taipei, Taiwan)

December 7, 2017

 Translation of an Excerpt

The Cabinet convoked an ad hoc meeting for accelerating investments in Taiwan, reviewing the situation of foreign and overseas Chinese direct investments (FDI). The Premier proposed three strategies to attract FDI in Taiwan; however, the three strategies are worn-out plans. If we cannot face and solve the upstream structural problems, the so-called three strategies are nothing but wishful thinking. Even internal investments are quickly declining, coupled with a rapid brain drain, how could we talk about foreign investments in Taiwan?

Premier Lai Ching-te has issued three directives targeting foreign and overseas Chinese investments: simplifying the review procedures for foreign and overseas Chinese investments; opening more foreign investments and cross-industry operations; enhancing measures to attract foreign businesses, especially prioritizing those that can gear up the development of domestic innovative industries.

It may almost be ascertained that Premier Lai would like to use these three strategies to substantially raise foreign investments in Taiwan; how difficult it will be! Especially when Taiwan has been hijacked by upstream policies and structural problems, the effect of small and sundry efforts would inevitably be offset. These big structural and upstream problems, from economic-trade marginalization to cross-Strait relations to global industrial positioning, even elements of domestic production, such as the power supply crisis, brain drain and wage stagnation, all need to be solved first.

Over two decades ago, Taiwan once used "Asia-Pacific Operation Center" as Taiwan's positioning in the global economic chain; later it hoped to become a crucial point to connect the world with the Mainland. However, because of political interventions, these policy objectives were not achieved.

What exactly is the positioning and imagination that the Tsai government assigns to Taiwan in the global economy and industrial chain? The Tsai government must first answer this question. In an adverse situation of policies and upstream structure, it is hard to expect any effects from Premier Lai's three strategies.

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