September 2017 | Vol. 47 | Issue 9 THE AMERICAN CHAMBER OF COMMERCE IN TAIPEI IN OF COMMERCE THE AMERICAN CHAMBER TAIWAN BUSINESS TOPICS TAIWAN Towards a Safer Food Supply 強化食品安全 September 2017 | Vol. 47 | Issue 9 Vol. September 2017 | INDUSTRY FOCUS 中 華 郵 政 北 台 字 第 FINANCIAL SERVICES TAIWAN BUSINESS 5000 CORPORATE SUCCESSION 號 執 照 登 記 為 雜 誌 交 寄 ISSUE SPONSOR Published by the American Chamber Of Read TOPICS Online at topics.amcham.com.tw NT$150 Commerce In Taipei 9_2017_Cover.indd 1 2017/9/8 11:44:40 AM CONTENTS NEWS AND VIEWS 6 Editorial SEPTEMBER 2017 VOLUME 47, NUMBER 9 In Support of the Taiwan Travel Act 一○六年九月號 支持《台灣旅行法》 7 Taiwan Briefs Publisher 發行人 By Timothy Ferry Andrea Wu 吳王小珍 Editor-in-Chief 總編輯 12 Issues Don Shapiro 沙蕩 Tackling White Paper Issues Associate Editor 副主編 執續追蹤白皮書議題 Tim Ferry 法緹姆 By Don Shapiro Art Director/ 美術主任/ Production Coordinator 後製統籌 Katia Chen 陳國梅 Manager, Publications Sales & Marketing 廣告行銷經理 Caroline Lee 李佳紋 COVER SECTION Translation 翻譯 Kevin Chen, Andrew Wang 14 Towards a Safer Food Supply 陳又銘, 王先棠 強化食品安全 American Chamber of Commerce in Taipei The recent incident of large numbers of 129 MinSheng East Road, Section 3, 7F, Suite 706, Taipei 10596, Taiwan eggs contaminated by pesticide use is but P.O. Box 17-277, Taipei, 10419 Taiwan the most recent of a series of food scan- Tel: 2718-8226 Fax: 2718-8182 e-mail: [email protected] dals in recent years that have shaken con- website: http://www.amcham.com.tw sumer confidence. The government has 名稱：台北市美國商會工商雜誌 發行所：台北市美國商會 instituted a number of regulatory reforms 臺北市10596民生東路三段129號七樓706室 電話：2718-8226 傳真：2718-8182 in an effort to deal with the issue, but it Taiwan Business TOPICS is a publication of the American Chamber of remains uncertain whether the current Commerce in Taipei, ROC. Contents are independent of and do not necessarily reflect the views of the Officers, Board of Governors, system is sufficient to stem the problem. Supervisors or members. © Copyright 2017 by the American Chamber of Commerce in Taipei, By Timothy Ferry ROC. All rights reserved. Permission to reprint original material must be requested in writing from AmCham. Production done in-house, Printing by Farn Mei Printing Co., Ltd. 21 Taiwan Turns to Healthy Eating 22 Prison Sentences for 登記字號：台誌第一零九六九號 As consumer interest in organic foods 印刷所：帆美印刷股份有限公司 Food-safety Violators 經銷商：台灣英文雜誌社 台北市108台北市萬華區長沙街二段66號 grows, major food companies are entering By Philip Liu 發行日期：中華民國一○六年八月 中華郵政北台字第5000號執照登記為雜誌交寄 this market segment. ISSN 1818-1961 By Timothy Ferry Chairman/ Albert Chang Vice Chairmen/ Dan Silver / Daniel Tseng Secretary: Vincent Shih TAIWAN BUSINESS Treasurer: Al Chang 2016-2017 Governors: Al Chang, Christine Jih, Joseph Lin, 26 Confronting the Edward Shober, Dan Silver, Joanne Tsai, Daniel Tseng, Neil Waters. Succession Issue 2017-2018 Governors: Who will take up the baton Albert Chang, William Farrell, Revital Golan, Tim Ju, Seraphim Ma, Vincent Shih, Leo Seewald. from the current generation 2017 Supervisors: Anita Chen, Nadia Chen, Nick Chen, of Taiwan’s corporate leaders? Bimal Kapoor, Shenoy Raghavendra. By Keith Menconi COMMITTEES: Agro-Chemical/ Melody Wang; Asset Management/ Christine Jih, Derek Yung; Banking/ Victor Kuan; Capital Markets/ Mandy Huang, C.P. Liu; Chemical Manufacturers/ Charles Liang, Michael Wong; Cosmetics/ Shirley Chen, Julien Jacquet, Abigail Lin; CSR/ Lume Liao, Fupei Wang; Energy/ Tina Chen, C.W. Chin; Greater China Business/ Helen ANALYSIS Chou; Human Resources/ Vickie Chen, Richard Lin, Monica Han, Seraphim Ma; Infrastructure/ Wayne Chin, Paul Lee; Insurance/ Paul Low, Dan Ting, Linda Tsou; Intellectual 41 Despite Cross-Strait Property & Licensing/ Jason Chen, Peter Dernbach, Jeffrey Harris, Vincent Shih; Marketing & Distribution/ Wei Hsiang, Political Standstill, Gordon Stewart; Medical Devices/ Terry Lin, Raghavendra Shenoy, Joanne Yao; Pharmaceutical/ Petra Jumpers, Lai Li Trade as Usual Pang, Jenny Zheng; Private Equity/ William Bryson; Public Health/ Joyce Lee, Dennis Lin; Real Estate/ Tony Chao; Where business has slowed, Retail/ Ceasar Chen, Mark Chen, Prudence Jang; Sustainable Development/ Kenny Jeng, Cosmas Lu, Kernel Wang; Tax/ the main reason appears to be Stella Lai/ Cheli Liaw, Josephine Peng; Technology/ Revital Golan, Connie Wang; Telecommunications & Media/ Thomas economic factors. Ee, Joanne Tsai; Transportation & Logistics/ Nick Chen; By Jane Rickards Travel & Tourism/ Anita Chen, Pauline Leung, Achim v. Hake. cover photo: cna 4 taiwan business topics • september 2017 9 Contents.indd 4 2017/9/8 12:06:56 PM ISSUE SPONSOR september 2017 • Volume 47 number 9 Eli Lilly and Company InDustrY F Cus A Report on the Financial Service Sector Following the Money By Matthew Fulco 30 Taiwan Banks See an Opening in Southeast Asia Exposure declines in China, though the mainland remains an important market for Lilly unites caring with discovery to make serving Taiwanese SMEs. By Matthew Fulco life better for people around the world. 33 Potential Opportunities for Foreign Banks Eli Lilly and Company has been in business for 140 Taiwan’s ambitious plans to develop off- years. Up to now, Lilly has approximately 41,000 employ- shore wind power bring the need for ees worldwide, and there are around 20% employees project financing. who are engaged in research and development. We also By Marina Finley conduct clinical trials in more than 55 countries, and market our medicines in 120 countries. 35 Building a Domestic Footprint By Don Shapiro Lilly is a leading, innovation-driven corporation 36 Taiwan Reforms Money- committed to developing a growing portfolio of best-in- laundering Controls class and first-in-class pharmaceutical products that help New York regulators’ fining of Mega Bank people live longer, healthier, and more active lives. Our last year for lax compliance practices was a products treat diabetes/endocrine, oncology, osteoporo- wake-up call. sis, central neuroscience, men's health, and many other By Matthew Fulco conditions. We are committed to making life better for 38 Getting Taiwanese to Engage in people around the world through uniting caring with Retirement Planning discovery, and it is at the very heart of Lilly’s business. More education is needed on the impor- Founded in 1966, Lilly Taiwan has been committed tance of investment and savings for old age. to providing Taiwanese patients a healthier life by By Marina Finley introducing innovative medicines and providing more patient education and support. To achieve this goal, our staffs accelerate time to market for new products, and work hard to strengthen our relationships with the local government, medical societies, patient advocacy groups, and health care providers to help patients and families understand more about their disease and manage it well. With these efforts, we hopefully help patients achieve better outcomes, and make a contribution to improve the medical environment in Taiwan as well. &*$-XO taiwan business topics • september 2017 5 9 Contents.indd 5 2017/9/8 5:23:32 PM E D I T O R I A L In Support of the Taiwan Travel Act ach year in recent years, the “Messages to Washington” Act has been introduced in both houses of the U.S. Congress to section of AmCham Taipei’s annual Taiwan White Paper “encourage visits between the United States and Taiwan at all Ehas strongly argued in favor of more frequent high-level levels.” At a time when bipartisan cooperation in Congress is visits to Taiwan by U.S. government officials. As stated in the rare, it is also gratifying that these bills have generated backing 2017 White Paper, “it has been the Chamber’s experience that from members of both major political parties. periodic visits by high-level officials can make a huge difference The bill in the House of Representatives – co-sponsored in building a strong bilateral relationship and in supporting the by Republicans Steve Chabot and Ed Royce and by Democrat interests of American companies operating in Taiwan.” Brad Sherman – has already been passed by the Foreign Affairs Over the span of the past 17 years, it is remarkable that Committee’s Subcommittee on Asia and the Pacific and sent on only one such trip by a Cabinet-rank official has occurred – the to the full Committee for consideration. In the Senate, a similar April 2014 visit by Environmental Protection Agency Adminis- bill has been proposed by Republicans Marco Rubio, Jim Inhofe, trator Gina McCarthy. By way of comparison, in the single year and Cory Gardner, together with Democrats Sherrod Brown, of 2015 a total of six American Cabinet members made official Robert Menendez, and Gary Peters. visits to India. Passage of the bills would assert the sense of Congress that As large and important a nation as India may be, its volume officials of all levels of the U.S. government are allowed to travel of trade with the United States is not significantly greater than to Taiwan to meet their Taiwanese counterparts, and that high- Taiwan’s. Last year when India ranked as America’s ninth biggest level officials of Taiwan may enter the United States, “under trading partner with a total of US$67.7 billion in imports and conditions that demonstrate appropriate respect for the dignity exports, Taiwan was just slightly behind, in tenth place with a of such officials, to meet with officials of the United States, total of US$65.4 billion. including officials from the Department of State, the Department The logical conclusion is that the disparity in treatment of of Defense, and other cabinet agencies.” these two major trading partners of the United States has more The Senate version of the legislation would further require to do with politics than economics. Clearly China can be counted the Secretary of State to submit a semiannual report to the on to raise a fuss whenever the U.S.