August 2020 | Vol

THE AMERICAN CHAMBER OF COMMERCE IN TAIPEI TAIWAN BUSINESS TOPICS August 2020 | Vol. 50 | Issue 8 ADVERTORIAL

Martin Turvill notes that Taiwan's talent pool has served as the backbone of SHL's success.

patients who may be wracked in pain, such as during a migraine attack, or have SHL: Taking the Lead difficulty with manual dexterity, as may occur with rheumatoid arthritis. A further advantage that the in Innovation and autoinjectors bring the patient is added safety, both in terms of protection from Digitalization needle sticking and assurance of proper dosage. ounded in Taiwan in 1989 by means making optimum use of data. As SHL looks to the future, Turvill sees a young Swedish entrepreneur, SHL’s operations have long generated sustainability as the next major area for F Roger Samuelsson, SHL Medical massive amounts of documentation, innovation. “Once an autoinjector is fired, has grown from a small medical-device including data covering design, process, it has to be disposed of, so it clearly has supplier to one of the world’s leading testing, simulation, materials, and other an environmental impact,” he notes. “Our designers and producers of autoinjectors. aspects. This includes analytical details innovation team is looking at how we can Of the company’s approximately 5,000 of its raw materials to the amount of make these items as recyclable as possible. employees globally, 4,600 work at one of force needed to remove the cap from Each one contains glass, metal, plastic, its nine facilities in Taiwan, all of them a device. “The data was there, but it rubber, and a drug, so it’s going to be a located in Taoyuan. was not yet being used in an integrated challenge. But we’re looking very seriously In line with SHL’s dedication to manner that would bring the most value at what can be doable.” constant innovation, the company is to our design and production processes,” To tackle all these challenges, SHL currently in the midst of a two-year says Turvill. “We have begun integrating maintains innovation teams in three program to completely digitalize its all that information and make it easily locations – Taiwan and in its design operations. “Innovation is no longer just accessible throughout the organization” and development centers in Stockholm, about technical advances and designing – for example to the team tasked with Sweden and in Deerfield, Florida in the the latest, newest device,” says SHL designing the next product or even a new U.S. It is also setting up a fourth design Medical Taiwan Managing Director cap for an existing product. “This allows team in Switzerland to further expand its Martin Turvill. “Rather, it’s about our design engineers to make data-driven innovation portfolio. And the innovation everything needed to support that design decisions that are better aligned with the process requires input from a variety of and manufacturing.” Increasingly, that manufacturing teams,” Turvill adds. different disciplines. “What we’re involved Another objective of the innovation in today is more than the basic R&D of drive is to continue to achieve greater five or ten years ago, when it was just product simplicity. Since the purpose of a matter of getting the designers and SHL products is to enable patients to self- engineers together,” says Turvill. “Now administer the medicine they require, the we need to include the data experts and company is highly aware of the need to specialists in statistical analysis, as well make these devices as easy and intuitive as the simulation experts and material to use as possible. In 2006, SHL became experts. Bringing all these functions and one of the world’s first companies to bring disciplines together helps us improve the modern autoinjector to market. Since the quality of our products, making the then, various generations of development innovation of both products and processes have brought the auto-injection process much more meaningful.” down to the two-step approach – just Turvill says SHL has had no difficulty uncap and inject – found in SHL’s Molly® finding the talent it needs in Taiwan family of devices. That convenience and to match its steady expansion and the SHL is a world-leading designer and innovator of development of ever more advanced self-administered autoinjectors. ease-of-use is especially important for

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products. “The skills are here, and we’ve by biologic and biosimilar drugs, which seen the standard of engineering and need to be administered through injection. standard of education getting better and Since these drugs are generally more better over the years.” He notes that two viscous and require higher volumes, SHL decades or so ago, Taiwanese workers has continuously developed new models to were good at following directions but accommodate those specifications. tended to be reluctant to voice their At the same time, autoinjectors have opinions and show initiative. “That’s indirectly contributed to the fight against no longer the case, and Taiwan’s diverse this year’s special circumstances. “When and prolific talent pool have truly been the coronavirus situation happened, the backbone of the company’s success,” many people who previously went to the Turvill says. hospital to get their injection realized it During this year of COVID-19 would be best to avoid taking the bus and pandemic, SHL’s business has continued going to a crowded public place,” Turvill to grow smoothly. In part, that increase says. “Now they’re finding that they can represents an extension of existing trends, do the procedure conveniently from home, especially the steady rise in the amount and that’s something the health authorities Data-driven initiatives enable complete alignment of pharmaceutical sales accounted for are encouraging.” between design and production processes.

瑞健：引領創新，加速數位轉型

500000 00

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SHL.indd 3 2020/8/4 下午10:01 CONTENTS

NEWS AND VIEWS 6 President’s View Choosing the Right Name to Fit Our Brand and Mission AUGUST 2020 VOLUME 50, NUMBER 8 By William Foreman 7 Editorial Discriminatory Policies Cut Publisher 發行人 Foreigners Out William Foreman 傅維廉 Editor-in-Chief 總編輯 Don Shapiro 沙蕩 10 Taiwan Briefs Deputy Editor 副總編輯 Jeremy Olivier 歐嘉仁 By Jeremy Olivier and Henry Kuo Art Director/ 美術主任/ 18 Issues Production Coordinator 後製統籌 Katia Chen 陳國梅 A Legal Test for Chiropractic; Manager, Publications Sales & Marketing 廣告行銷經理 A Plan for Deepening U.S.-Taiwan Caroline Lee 李佳紋 Ties Translation 翻譯 Kevin Chen, Yichun Chen, Andrew Wang 陳又銘, 陳宜君, 王先棠新 By Don Shapiro

American Chamber of Commerce in Taipei 129 MinSheng East Road, Section 3, 7F, Suite 706, Taipei 10596, Taiwan P.O. Box 17-277, Taipei, 10419 Taiwan COVER SECTION Tel: 2718-8226 Fax: 2718-8182 e-mail: [email protected] Gearing Up for Post-COVID Opportunities website: http://www.amcham.com.tw 名稱：台北市美國商會工商雜誌發行所：台北市美國商會臺北市10596民生東路三段129號七樓706室電話：2718-8226 傳真：2718-8182

Taiwan Business Topics is a publication of the American Chamber of Commerce in Taipei, ROC. Contents are independent of and do not necessarily reflect the views of the Officers, Board of Governors, Supervisors or members. © Copyright 2020 by the American Chamber of Commerce in Taipei, 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.

登記字號：台誌第一零九六九號印刷所：帆美印刷股份有限公司經銷商：台灣英文雜誌社台北市108台北市萬華區長沙街二段66號發行日期：中華民國一○九年八月 21 Planning for Taiwan’s Future 中華郵政北台字第5000號執照登記為雜誌交寄 ISSN 1818-1961 Prosperity Exclusive interview with National Chair: C.W. Chin Development Council Minister Vice Chairs: Fupei Wang, Timothy Shields Secretary: Seraphim Ma Kung Ming-hsin. Treasurer: Al Chang

2019-2020 Governors: 26 How Taiwan’s Al Chang, Albert Chang, Seraphim Ma, Jan-Hendrik Meidinger, Paulus Mok. Semiconductors Won

2020-2021 Governors: C.W. Chin, Brian Sung, Against COVID-19 Timothy Shields, Fupei Wang, Roger Yee, Angela Yu. Insights from SEMI Taiwan’s 2020 Supervisors: Mark Horng, Stephen Tan, Terry Tsao. Terry Tsao.

COMMITTEES: By Jeremy Olivier Agro-Chemical/ Melody Wang; Asset Management/ Eric Lin, Angela Yang, Derek Yung; Banking/ Paulus 28 Taiwan’s Bold, Sustainable Mok; Capital Markets/ Mandy Huang, Eric Jai, C.P. Liu; Chemical Manufacturers/ Charles Liang, Michael Post-pandemic Future Wong; Cosmetics/ Abigail Lin; Defense/ Manohar Thyagaraj, Roger Yee; Digital Economy/ Max Chen, Promising new opportunities Renee Chou, Tai Chi Chuan; Energy/ Richard Freer, Randy Tsai; Human Resources/ Christine Chen, have been opening for Taiwan’s Carmen Law, David Tsai; Infrastructure/ Wayne economic development. Chin, Paul Lee; Insurance/ KT Lim, Mandy Shih, Linda Tsou; Intellectual Property & Licensing/ Jason Chen, Peter Dernbach, Vincent Shih; Marketing & Distribution/ (tba); Medical Devices/ Louis Ko, Jeffrey Wang; Pharmaceutical/ Justin Chin, Rie Nakajima, Shuhei Sekiguchi; Private Equity/ Echo Yeh; Public Health/ Joyce Lee, Pongo Peng, Tim Shields; Retail/ EXECUTIVE SUITE Ceasar Chen, Mark Chen, Peggy Liao; Sustainable Development Goals/ Kenny Jeng, Lume Liao, 33 Meet Daniel Tseng of Cosmas Lu, Fupei Wang; Tax/ Heidi Liu, Cheli Liaw; Technology/ Cynthia Chyn, Stella Lai, Angela Yu; Telecommunications & Media/ Thomas Ee, David Corning Display Shin, Joanne Tsai; Transportation & Logistics/ (tba); Travel & Tourism/ Gina Tsai, Jason Yeh, Fiona Yuan. By Jeremy Olivier

COVER DESIGN: GRACE YANG

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8 contents.indd 4 2020/8/4 下午9:53 AUGUST • VOLUME 50 NUMBER 8

INDUSTRY F CUS A report on healthcare and innovation

36 Taiwan Keeps Mercurial Coronavirus at Bay The next step is to fully reopen safely and share disease-control expertise with the world. By Matthew Fulco 39 Battling COVID-19 with Technology Taiwan’s technical strengths will also benefit its economic recovery. By Daniel S. James II 42 Taiwan Faces New Challenges from Liver Disease The battle against hepatitis has largely been won, but rising fatty liver incidence has worrisome implications. By Matthew Fulco

TAIWAN BUSINESS 44 Biotech Event Showcases Taiwan’s “Next Trillion- Dollar Industry” Combining on-site and online participants, exhibitors, and speakers, BIO Asia-Taiwan 2020 introduced hundreds of new biotech and biomedical developments, including many related to COVID-19. By Louise Watt

BOOKS 47 Breaking the Vicious Cycle for Taiwan’s Economic Migrants A review of Migrante by J.W. Henley. By Jeremy Olivier

SPONSORED CONTENT 2 SHL: Taking the Lead in Innovation and Digitalization 8 Johnson & Johnson Taiwan Changing the Trajectory of Health for Humanity 16 Amgen: Seeking to Make Healthcare Systems More Resilient 49 Seeing Taiwan Eastern Taiwan: Bringing Art to a Region of Beauty

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8 contents.indd 5 2020/8/4 下午9:53 PRESIDENT'S VIEW

Choosing the Right Name to Fit Our Brand and Mission

’m excited to say that we’re planning pares to celebrate its 70th anniversary next to give our voting members a chance to year. Aligning the organization’s name with make a little history at our Annual Gen- its identity and mission is an excellent way to Ieral Meeting in November. That’s when they start our journey into the next seven decades. will be able to decide whether our organiza- Some might wonder how this change will tion should become the American Chamber of affect the AmChams in Taichung and Kaoh- Commerce in Taiwan. siung. It shouldn’t have any impact. Those Why do we want to do this? And why two fine organizations are autonomous from now? us. Our relationship with them has always It’s simply because AmCham Taiwan better been complementary, not competitive. They fits who we are and what we do. are perfectly positioned to continue providing We have members across Taiwan – from their unique value proposition to their mem- Yilan, Taoyuan, and Hsinchu to Yunlin, Tai- bers. chung, and Kaohsiung. We’re not just an I wish I could say that applying to create organization serving members in Taipei – AmCham Taiwan is as simple as filling out a though we’re extremely proud of the great form and getting it chopped a few days later. city where so many of our members have the Alas, it’s a complex process that could take honor to live and work! months. Thankfully, Winkler Partners has Having “Taiwan” in our organization’s generously offered to help us with the process name also better fits our mission, which is to on a pro bono basis. I’m extremely grateful improve the business environment in Taiwan for the assistance. – making it more open, innovative, and pros- I believe this is the right move to make, perous. and I hope the membership will support it Our advocacy agenda is squarely focused when we put it to a vote in November. on the central government. We spend most I tried to cover the most obvious questions of our time meeting with senior officials with with this column, but I’m sure some members the Ministry of Economic Affairs, National will have additional questions. As always, I Development Council, Ministry of Health and welcome all queries and encourage people to Human Welfare, Bureau of Foreign Trade, write to me at: williamforeman@amcham. Ministry of Foreign Affairs, Financial Super- com.tw visory Commission, and many other parts of the central government. It’s also important to note that when we go to Washington for our annual CEO Mission, we spend all our time discussing how U.S. policies affect all of Taiwan. Our focus is on Taiwan’s entire economy and trading relationship with America. William Foreman So why make the change now? This is a President, great time to do it as the organization pre- American Chamber of Commerce in Taipei

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8 presidents view.indd 6 2020/8/4 下午9:56 E D I T O R I A L Discriminatory Policies Cut Foreigners Out

aiwan’s foreign community has been delighted to see antor who is also a part owner and has property in Taiwan. the overwhelming international recognition of Taiwan’s Stimulus policies affect individual foreign residents as well. T success in battling the COVID-19 pandemic. However, In early July, distribution started of stimulus vouchers and many foreign residents have also been dismayed at the lack of travel subsidies meant to spur economic activity and boost compassion and consideration for their interests conveyed in a Taiwan’s heavily affected tourism industry. Later in the month, number of recent policies. the Ministry of Culture launched its own voucher program, A series of decisions that exclude or unfairly target foreigners consisting of NT$600 coupons to be used for cultural and arts- has been announced since March, though some have been related spending. reversed after objections were raised. For a time, for example, Although foreign residents pay taxes on income earned in only Taiwanese citizens were allowed to send masks abroad and Taiwan, these benefits are only being offered to Taiwanese citi- then only to other Taiwanese citizens. Now that mask production zens and the foreign spouses of citizens. Moreover, they are being has reached 20 million per day, that restriction has been lifted. withheld from Taiwan’s many migrant workers, a low-income In late June, the Ministry of Foreign Affairs began easing group that would greatly benefit from some extra spending entry restrictions, but stipulated that all foreign nationals, power. regardless of immigration status, would be required to present When longtime Taiwan Business TOPICS contributor a negative COVID-19 test result upon arrival in Taiwan. Many Steven Crook reached out to government agencies regarding this prominent figures in the expat community took to social media discriminatory policy for a recent report in the Taipei Times, to express their concerns. A few days later, the Central Epidemic he was met with shoulder-shrugging and buck-passing. When Command Center backtracked to say that foreigners holding he finally managed to speak to a representative at the Ministry ARCs and APRCs would be exempted from this requirement. of Economic Affairs, many of his questions went completely This is something the government should have gotten right the unanswered. This lack of inclusiveness and transparency is espe- first time. cially maddening given the government’s stated wish in recent In addition, low-interest small business loans as part of the years to make Taiwan a more open, welcoming environment for government’s NT$1.05 trillion epidemic-relief package were foreigners. made available to help companies in hard-hit sectors cover No one ever wants to be treated like the “other.” At a time revenue losses. However, administration of the loans was left of global crisis like the one we are now facing, it is even more to the banks, which have long followed discriminatory policies critical for Taiwan to act not only in the best interests of its citi- regarding lending to foreign-owned businesses. To qualify for zenry, but also that of the foreign residents who call the island these – or any – loans, such businesses must have a local guar- home.

歧視政策把外籍人士排除在外

住在台灣的外籍人士很高興看到國際對於台灣成功有個本地保證人，而且保證人必須是企業的共同所有人，而對抗新冠肺炎（COVID-19）的廣泛稱許與肯定。但且在台灣要有不動產。居許多外籍人士覺得最近多項政策欠缺同理心，未考政府刺激經濟的政策，對在台個別的外籍人士也有影響。慮他們的利益，這讓他們感到錯愕。 7月初，政府推出振興券和旅遊補助，用意是要刺激經濟活政府自三月以來公布的政策中，有些將排除外籍人士在動，幫助台灣受到疫情嚴重打擊的觀光業。後來文化部也推外、有些則針對外國人採取不公平的待遇，幸好有些在遭到出面額600元的藝Fun券，可以用於文化和藝術方面的消費。反對後即政策轉彎。例如，有一段時間，只有台灣公民可以外籍人士在台灣若有收入就會繳稅，但上述的福利只提供寄口罩到海外，而且受件人必須也是台灣公民。隨著台灣口給台灣公民或公民的外籍配偶。此外，台灣眾多外籍移工也罩生產量達到每天2000萬片，這個限制已經解除。不能享有這些福利，而這個低收入族群若能領取，對他們的 6月下旬，外交部開始放寬入境限制，但規定所有外籍人消費能力會有很大幫助。士，不論在台灣有無居留許可，在抵達台灣時都必須出示 Taiwan Business TOPICS長期撰稿人Steven Crook為了 COVID-19檢測陰性的證明。台灣多位知名的外國人士在社要在Taipei Times發表文章，針對這些歧視性政策跟政府部群網站上對此表達關切。幾天之後，中央流行疫情指揮中心門詢問，結果部門之間互踢皮球，不然就是表示無能為力。說明，持有台灣居留證或永久居留證的外籍人士可免於上述他最終總算跟一名外交部的人員講到話，但他的許多問題未規定。這是政府在一開始就應當抓對的政策方向。得到答覆。政府近年表明希望使台灣成為更歡迎外國人而此外，政府新台幣1.05兆元的疏困方案包含對小型企業的且更開放的環境，如今卻出現如此欠缺包容性和透明度的事低利融資，目的是要幫助受到疫情嚴重衝擊的產業別彌補營情，特別令人氣憤。業額的損失。但提供融資的工作交給各家銀行負責，而本地沒有人會喜歡被排除在外。在當今的全球疫情危機之下，銀行長期以來在對外國人經營的企業放款時有歧視政策。外台灣比平常更應該不僅考量本國民眾的最佳利益，也要想到國人經營的企業要在疏困計畫下或在平常申請貸款，都必須以台灣為家的外籍人士。

TAIWAN BUSINESS TOPICS • AUGUST 2020 7

8 Editorial.indd 7 2020/8/5 下午3:01 ADVERTORIAL Changing the Trajectory of Health for Humanity – Johnson & Johnson Taiwan

skilled surgeons. With one of the most “The ideal situation is to have more comprehensive orthopaedic portfolios flexibility in the policies, such as self-pay in the world, J&J has also maintained and a more reasonable pricing policy, a strong relationship with the AO which will encourage companies to foundation, a medically guided, not-for- import or to launch the most advanced profit, global network of surgeons and the and innovative products on the market world’s premier education, innovation, and in Taiwan,” says Ko. “We want Taiwan research organization for the treatment of to be host to a world-class innovation trauma and musculoskeletal disorders. The ecosystem, and medical devices should be ajor healthcare multinational two organizations have a shared passion a part of that.” Johnson & Johnson’s credo in advancing patient care and fulfill the Beyond the responsibility Johnson M states its commitment and unmet clinical needs of surgeons. & Johnson pledges to its customers, the responsibilities to the interests of all the During the recent pandemic period, company also prides itself on creating a company’s stakeholders. This pledge J&J has continued to provide professional diverse and inclusive environment for its is engraved in English and Chinese on training to surgeons through virtual employees around the world. J&J Taiwan placards hung at the entrance to J&J’s programs. It also invited expert Taiwanese has taken this objective seriously, recently Taiwan office. There, leadership and staff surgeons to share their clinical experience moving its team into a newly designed in the company’s three business sectors of with counterparts around the world via office in central Taipei. The open design consumer health, pharmaceuticals, and virtual conferences, which broadened of the new space encourages collaboration medical devices dedicate themselves to the international visibility of the Taiwan and challenges employees to break out of upholding the commitment outlined in the experts. the traditional office mindset, which in statement of principles. “Learning to use new products requires turn encourages innovative thinking. Johnson & Johnson’s first a lot of practice,” says Ko. “One of Removing assigned spaces for responsibility, the credo states, is to its J&J Medical Device Companies’ biggest employees also better prepared the customers – the patients, doctors, nurses, responsibilities is to equip surgeons with company for the disruptions caused by the and parents who use the company’s the knowledge and experience required to COVID-19 pandemic. Although the virus products and services. According to use our products correctly.” did not affect Taiwan as severely as other Johnson & Johnson Medical Taiwan A complicating factor for both patients places in the Asia-Pacific region, the more General Manager Louis Ko, that in large and surgeons in Taiwan, however, is the flexible office setup meant that employees part means working to ensure patient existence of certain regulatory barriers, were not caught off-guard. The company access to J&J’s cutting-edge, innovative, chiefly a reimbursement scheme that does globally and in Taiwan has taken evidence-based solutions. not favor more advanced solutions. This precautions to support the safety and well- “We are constantly striving to provide regulatory environment can also hinder being of its employees, enabling those solutions that allow for better outcomes innovation and prevent the continuous who are able to work from home to do so, for the patient, with the aim of restoring introduction of new medical technologies while ensuring they have the technology their quality and joys of life,” Ko says. and devices into Taiwan. available to fulfill their responsibilities. When it comes to the company’s medical devices, surgeons are an important part of the commitment. Using J&J’s medical device products, such as its innovative knee and hip replacement solutions, gives surgeons access to new skills and know-how in the form of workshops, as well as dry lab and cadaver training. The company also offers preceptor training, which sends surgeons abroad to learn particular procedures and product uses in order to return home as a trainer for the same. This program has been popular among Taiwan’s already

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“It’s about learning agility,” explains program of the same name, provides they hit roadblocks. Ko. “If you can adapt yourself to a new employees who bring forward good ideas Ko says that the Kickbox program, normal with ease, that leaves everybody or suggestions on the company’s internal combined with the more flexible in a better position to carry on the operations or external engagement with workspace in the Taipei office, are part company’s operations.” customers with several tools to help them of what continue to make Johnson & Taiwan’s excellent virus containment carry out those ideas over a period of Johnson a leader in its field. “By removing efforts in the early months of 2020 eight weeks. Employees awarded their barriers between people and incentivizing allowed Ko and his team to introduce own Kickbox receive a US$1,000 grant idea generation, we are making our a new initiative promoting innovation to make their ideas a reality, as well as a company a center for innovation and and creative ideas in the workplace coach and guidebook to help them along transformation.” he says. “We are doing earlier than their introduction in some the way. Small perks like a Starbucks gift our part to further Johnson & Johnson’s neighboring markets. The Johnson & card and a bar of chocolate give recipients aim of changing the trajectory of the Johnson Kickbox, modeled on an Adobe an extra boost to keep going, even when health of humanity.”

健

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JJ.indd 9 2020/8/4 下午10:06 T A I W A N B R I E F S

— BY JEREMY OLIVIER AND HENRY KUO —

MACROECONOMICS ECONOMIC INDICATORS

MARKET RALLIES WHILE US$ billion Year earlier TRADE STAGNATES Current Account Balance (Q1 2020) 18.16 17.1 Many in Taiwan and around the Foreign Trade Balance (June) 4.8 3.8 world took notice in late July as the New Export Orders (June) 41 43.8 market cap for Taiwan Semiconduc- Foreign Exchange Reserves (end June) 488.7 467.0 tor Manufacturing Co. (TSMC) broke US$400 billion, briefly making it the Unemployment (May) 4.07% 3.67% world’s 10th most valuable company. Discount Rate (June) 1.125% 1.375% The 10% spike in the chip manufactur- Economic Growth Rate Q1 2020p 1.59% 1.84% er’s share value caused a record flurry Annual Change in Industrial Output (May)p 1.51% -2.58% of intraday trading on July 29, with the Annual Change in Industrial Output (Jan.-May)p 6.51% TAIEX rising 400 points in the first 20 Annual Change in Consumer Price Index (May) -1.19% 0.93% minutes of trading before falling back to Annual Change in Consumer Price Index (Jan.-May) -0.11%

the previous day’s close. P=PRELIMINARY SOURCES: MOEA, DGBAS, CBC, BOFT According to a report by Bloom- berg, investor interest in TSMC rose after Intel indicated that it might need have shown increases – a 3.95 point rise year to US$307.2 billion, the Ministry to outsource production of its 7-nano- in the manufacturing composite, 3.14 of Economic Affairs reported, while meter chips; TSMC is considered a points for services, and 4.18 points for food and beverage sales dropped by likely recipient of that business. TSMC’s construction. 7.0%. Nevertheless, the National Devel- outstanding market performance was Despite the relatively strong demand opment Council has stated that these accompanied by a 1% rise in value of for ICT components since the pandemic sectors fared comparatively well due to the NT dollar, bringing it to its highest began, Taiwan’s exports in June fell improved public and business sentiment point in two years. year-on-year by 3.83%, and imports toward Taiwan’s economic outlook. The Taiwan Institute of Economic decreased 8.6% from June 2019. Research (TIER) reports that global However, cumulative trade figures for INTERNATIONAL demand has begun to recover, as econ- the first half looked a little better, with omies such as the U.S. and the EU have exports growing 0.52% compared to the TAIWAN-SOMALILAND gradually started to reopen. As a result, same period last year. TIES ESTABLISHED all three of TIER’s composite indicators Retail sales in June fell 1.3% year-on- Taiwan and Somaliland agreed this summer to establish representative offices in each other’s countries, despite multiple reported attempts by Beijing to intervene. The name “Republic of China” will not be used to describe the relationship, as formal ties have not been established. Ministry of Foreign Affairs spokesperson Joanne Ou said that the two sides will expand cooperation in the fields of public health, energy, mining, education, and agriculture under what she calls the “Taiwan Model,” which emphasizes the development of mutually beneficial substantive relations. Although Somaliland declared inde- Taiwan Minister of Foreign Affairs Joseph and Somaliland foreign minister Yasin pendence from Somalia in 1991, most Haji Mohamoud signed a bilateral agreement in Taipei in February to establish unofficial relations. of the international community has not PHOTO: MINISTRY OF FOREIGN AFFAIRS

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recognized its political autonomy. On Twitter, the U.S. National Security Coun- cil expressed its support for Taiwan and Somaliland’s newly formed relations.

TAIWAN REOPENS GUAM OFFICE Taiwan’s Ministry of Foreign Affairs announced in early July that it would reestablish its representative office in Guam, after having shut it down a few years earlier. At that time, MOFA cited budgetary and human resources concerns as the reasons for closing the Taiwanese looking to spend their travel stimulus subsidies had the option this office. Its functions were absorbed by the summer of joining a pretend travel experience, hosted by Taipei's Songshan Republic of China’s embassy in Palau. Airport. "Passengers" went through all of the check-in, security, and immigration procedures before boarding a plane bound for nowhere. The scheme turned MOFA explained the reopening by out to be quite popular, with 7,000 people applying to take part in the first round, although only 60 were ultimately chosen in a lottery drawing. noting that its budget has increased in PHOTO: MARTTI CHEN the past two years and that U.S.-Taiwan relations have strengthened significantly. gurate the USA Caucus. The group’s Ing-wen’s campaign platform for her first The Guam office will help Taiwan “facil- goals are to promote friendship and term. It is expected that the introduction itate economic and trade cooperation exchanges between Taiwan’s legislators of lay judges will bring Taiwan further in and exchanges between Taiwan and the and U.S. politicians. American Institute line with many of its democratic contem- greater Western Pacific region, deepen in Taiwan Director Brent Christensen poraries, such as Japan and Germany. Taiwan’s relations with its Pacific allies, attended and spoke at the event, as did Taiwan’s legal system is based heavily on and increase multilateral exchanges,” the AmCham Taipei President William Fore- the Japanese and continental European ministry said in a statement. man. Newly appointed representative models. to the U.S. Hsiao Bi-khim also made an LEGISLATORS LAUNCH appearance and expressed hope that the BORDERS OPENED TO USA CAUCUS caucus would provide support for her FOREIGN STUDENTS Despite sparring just days earlier mission in Washington, D.C. Taiwan’s Ministry of Education on on the Legislative Yuan floor over July 22 announced that it would begin the appointment of the new Control DOMESTIC granting entry to all final-year interna- Yuan head, 71 legislators from across tional students, regardless of nationality party lines met on July 20 to inau- CITIZEN JUDGE ACT PASSED – including students from China. They The DPP-sponsored Citizen Judges will be required to undergo a 14-day TAIWAN STOCK EXCHANGE Act passed its third and final reading in quarantine upon arrival in Taiwan, and PERFORMANCE the Legislative Yuan on July 22, thanks during that time can reside in their dorm THE LINE SHOWS CHANGES IN TRADE VALUE AND THE SHADED AREA CHANGES IN THE TAIEX INDEX. in part to the ruling party’s 63-seat room, apartment, or a hotel. The Central

POINTS NT$ BILLION majority. The law will establish a system Epidemic Command Center has also 13000 315 of lay judges, in which citizens who are provided 500 beds to accommodate the 12000 280 above age 23 and have obtained at least returning students. 11000 245 a high school degree will serve alongside The gradual loosening of restric- 10000 210 professional judges in certain criminal tions on foreign degree-seeking students 9000 175 cases. This system differs from a jury returning to Taiwan comes on the heels 8000 140 system in that the lay judges and profes- of other measures intended to begin 7000 105 sional judges jointly decide both the allowing non-citizens back into Taiwan. 6000 70 verdict and sentencing in each case. It indicates the government’s confidence 5000 35 4000 0 The legislation is a significant step in carrying out a step-by-step reopening forward in reforming Taiwan’s judicial of the island after successfully manag-

DATA SOURCE: TWSE system, a major goal of President Tsai ing the COVID-19 outbreak. Although

TAIWAN BUSINESS TOPICS • AUGUST 2020 11

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immigration and pandemic controls Although foreign residents must Taiwan’s purchases of defensive weap- remain relatively strict, Taiwan’s success pay taxes on all Taiwan-based income, ons are necessary in the face Beijing’s in containing the virus may mean a they do not qualify for any of the indi- continuing threats. complete or nearly complete reopening vidual stimulus packages unless they within a short period of time. are married to a Taiwanese national, HK DENIES VISAS a policy that many have criticized as TO TAIWAN OFFICIALS MOE TO RECRUIT MORE discriminatory. Not long after the National Security FOREIGN TEACHERS Law introduced by Beijing took force in In light of Taiwan’s goal of becom- CROSS-STRAIT Hong Kong, three officials of the Taipei ing a bilingual nation by 2030, the Economic and Cultural Office (TECO) Ministry of Education plans to recruit CHINA SANCTIONS in Hong Kong were forced to return to more foreign teachers, as well as to LOCKHEED MARTIN Taiwan after the territory’s government train local teachers to use English as the China announced on July 15 that refused to renew their work visas. One language of instruction in other courses. it would impose strict sanctions on of the officials, acting Director General The MOE said it will also increase the Lockheed Martin Corp., citing the multi- of TECO Hong Kong Kao Ming-tsun, number of foreign teachers it recruits national defense company’s estimated was reportedly denied an extension each year from 80 to 300, and will US$620 million sale of surface-to-air of his visa because he refused to sign ease requirements for foreign nationals missiles to Taiwan. a document endorsing Beijing’s “One to come to Taiwan to teach. President The transaction marks the seventh China” principle. Tsai Ing-wen has championed the Bilin- approval of defensive arms sales to The incident sends a warning signal gual Nation program as a way to enable Taiwan by the Trump administration. It to Taiwan, which had recently estab- Taiwan to become more competitive on adds fuel to rising tensions between the lished an office dedicated to assisting the world stage. U.S. and China, which has vehemently people fleeing Hong Kong after passage opposed all such sales. China did not of the new law. Taiwan’s Mainland STIMULUS VOUCHER specify what form the sanctions would Affairs Council has argued that the PROGRAMS KICK OFF take or how and when they would be legislation undermines the 2011 agree- Starting from July 1, Taiwanese citi- carried out. ment that established unofficial but zens and their foreign spouses were Foreign Ministry Spokesperson substantive relations between Taiwan able to apply for what have been called Joanne Ou stated that China’s pres- and Hong Kong. Triple Stimulus Vouchers, part of the sure on Lockheed Martin constitutes Taiwan’s government reciprocated government’s effort to jumpstart the "barbaric intimidation,” and that the move by refusing to renew the visas economy after fears that the COVID- 19 pandemic would put a damper on consumer spending. Each set of vouchers costs NT$1,000 (US$34) and contains NT$3,000 worth of coupons that can be used on a wide range of retail goods and various services. Also introduced in July was the government’s travel stimulus program, which includes subsidies for domestic travel, including group tours, independent travel, hotels, tour buses, and amusement parks. Finally, the Ministry of Culture announced on June 11 that it would begin issuing NT$1.2 billion (US$41 million) worth of vouchers for spending on the arts and culture. Each voucher is valued at NT$600 (US$20) and will be A recipient shows off his triple stimulus vouchers. The vouchers became available for pickup from Taiwan's post offices starting July 15. valid from July 22 until the end of 2020. PHOTO: CNA

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of two representatives at the Hong Kong TAIWAN'S JAN. - JUN. 2020 TRADE FIGURES Economic, Trade and Cultural Office in (YEAR-ON-YEAR COMPARISON) Taipei. The Hong Kong government’s next step may be to formally shut down China/ apan ASEA TOTA the TECO office there. Another possi- 67 ble option is for Taiwan to maintain the 60.9 26.1 27.6 29.9 24.9 22.3 17 21.1 17.4 11.3 11.7 158

cultural and economic missions of the 157.2 137.2 office, while discontinuing more polit- 2020 2019 2020 2019 2020 2019 136.7 ically sensitive functions like consular .S.A Europe services. 23 22 17.4 17.3

16.6 16.2 14.9 13.4 BUSINESS 2020 2019 2020 2019 2020 2019

T: S Billion ØRSTED & TSMC Exports mports SO RCE: BOFT/MOEA INK WIND DEAL Danish wind power company Ørsted and TSMC on July 8 signed a major renewables agreement, under which the broke ground this July for an integrated most recent board director election, in Taiwan company would purchase the circuit testing and packaging plant in which 27 shareholders who own a 53% entire production of Ørsted’s third wind Qingdao, China. Production at the plant stake in the company were blocked from farm project in Taiwan. It is the world’s is expected to begin in 2021, reaching full participating by members of Tatung’s largest corporate power purchase agree- capacity by 2025. founding Lin family. Tatung thus became ment thus far. The US$8.6 billion investment will the first publicly listed company to The deal indicates that industries provide high-end packaging and testing attempt to deprive shareholders of their could soon start getting on board with services for chips involved in 5G develop- voting rights. the Taiwan government’s goal to diver- ment and AI-related device applications. At the June 30 meeting, candidates sify Taiwan’s energy portfolio by 2025, It is the first step in diversifying Foxconn’s were selected for all nine seats on the with renewables to constitute 20% of technology development capabilities, board of directors, and four directors the mix. In addition, TSMC is the first including semiconductors, AI, and next- who were backed by investors advocat- large company to meet the government’s generation communications. The company ing change within the company were requirement that heavy energy-users in also plans to become involved in develop- dismissed. Multiple government agen- certain industrial sectors generate or ing electric cars and digital healthcare. cies are investigating the matter, and purchase renewable energy equal to 10% This latest development also reflects the Ministry of Economic Affairs has of chartered capacity, something which Foxconn Chairman Young Liu’s goal to rejected the registration of the new board other companies have expressed skepti- transition the company from a hardware members. cism over. manufacturer to an innovative integra- Meanwhile, the Financial Supervisory Later in July, Ørsted, one of the largest tor of hardware and software in order Commission has reported Tatung chair- offshore wind developers in the market, to increase profitability. Foxconn’s gross woman Lin Kuo Wen-yen to prosecutors announced the launch of its NT$60 margin is expected to increase 10% by for breach of trust, and the Taiwan Stock million (US$2 million) Offshore Wind 2025, when the plant is fully opera- Exchange has asked Tatung to explain Industrial Development Fund for Taiwan. tional. Investment in the plant, which its decisions. If found to be in violation The fund is intended to secure resources was approved by Taiwan's Investment of relevant regulations, Tatung could be for the local supply chain, cultivate talent, Commission, also represents a pivot by fined, delisted, or deprived of the ability and drive overall development of the wind Foxconn back to China after the outbreak to hold board elections independently. power industry in Taiwan. of COVID-19 forced it to shut down some In its defense, Tatung said the blocked of its operations there earlier in the year. shareholders had contravened the Business FOXCONN EYES CHIPS Mergers and Acquisitions Act and the Act WITH NEW PLANT TATUNG ELECTION Governing Relations Between the People Taiwanese multinational contract elec- DRAWS SCRUTINY of the Taiwan Area and the Mainland tronics manufacturer Hon Hai Precision Taiwanese conglomerate Tatung Area, stating that some had received finan- Industry Co., also known as Foxconn, Company sparked controversy with its cial backing from Chinese investors.

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FORMER PRESIDENT LEE TENG-HUI ‘S DEMOCRATIC LEGACY Lee Teng-hui, Taiwan’s first demo- cratically elected president and first native Taiwanese national leader, died on July 30 after being hospitalized since February. He was 97 years old. AmCham Taipei released a statement joining the people of Taiwan in mourn- ing Lee’s passing and noting his historic role in promoting Taiwan’s democratic development. Born in 1923, when Taiwan was still under Japanese rule, Lee joined the Chinese Nationalist Party ranks during the authoritarian reign of Chiang Kai-shek, at a time when the political PHOTO: CNA sphere was still dominated by mainland Chinese who had fled to Taiwan after occasions during Lee’s tenure. cal power, many in the party blamed Lee the Chinese Civil War, or their offspring. Running against three other candi- for secretly backing the opposition. Lee After serving in several important dates, Lee won Taiwan’s first direct went on to form the Taiwan Solidarity appointed positions, including Mayor presidential election in 1996 with 54% Union and later the Formosa Alliance, of Taipei, he was chosen by President of the vote, earning him the sobriquet of two fiercely pro-independence political Chiang Ching-kuo to become Vice Presi- “Mr. Democracy.” parties. He remained active as a politi- dent in 1984. While in power, Lee coined the cal commentator, maintaining a tough Taking over as president after concept of “New Taiwanese,” which stance on China. In a rare 2018 inter- Chiang’s death in 1988, Lee spear- includes all of the island’s people – view with the New York Times, he stated headed a major shift in Taiwan’s including spouses from Southeast Asia that “China’s goal has never changed… political landscape, instituting reforms – under the banner of a reborn, demo- [it] is to swallow up Taiwan’s sover- and redefining the relationship with cratic Taiwan. eignty, exterminate Taiwanese democracy China as “special state-to-state rela- In line with Constitutional limits, and achieve ultimate unification.” tions.” Lee’s 1995 visit to the U.S. to Lee did not run for reelection in 2000. President Lee Teng-hui is survived by deliver a speech at Cornell University When the KMT lost the presidency to his wife, Tseng Wen-hui, and their two infuriated China, which lobbed missiles the Democratic Progressive Party that daughters, Anna and Annie, as well as into waters off Taiwan’s coast on two year in Taiwan’s first transfer of politi- two grandchildren.

A REPORTER’S REMEMBRANCE

— BY DON SHAPIRO —

hortly after my arrival in Taipei in the fall of 1969, I tural economist named Lee Teng-hui who had recently earned received a phone call from a Columbia Graduate School a Ph.D. at Cornell. S of Journalism classmate who was visiting from Japan. My classmate said Lee had invited him to his apartment Professors at his undergraduate alma mater, Cornell, had the following evening. Would I be interested in coming along? encouraged him to call on an impressive Taiwanese agricul- New to town and happy to make any new acquaintances, I

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readily agreed. until issues reached his desk in government. The next night we had a two-hour conversation over tea Another memory is from 1986 when I was part of a Time and fruit with Lee – then a technocrat at what would later magazine delegation that called on then-Vice President Lee. become the Council of Agriculture – and his wife. I had no A key issue at the time was whether Taiwan could abandon reason to keep notes of our discussion, but I came away with martial law and fully embrace democracy. The day before we a sense of the man that helped shape my understanding of him met Lee, another senior government official, Vice Premier Lin over the following decades. Lee had emphasized his “Taiwan- Yang-kang, had given us the official party line: martial law eseness,” which included an appreciation of Japanese culture, remained absolutely necessary to protect Taiwan’s security and he showed himself to be a devout Christian whose reli- from the threat of Communist subversion. gion imbued him with a deep commitment to social justice and Lee gave us an entirely different perspective. He had welfare. He also identified himself as a political independent discussed the matter in depth with President Chiang Ching- who had resisted repeated attempts to recruit him to join the kuo, he said, and both were convinced that maintenance of Chinese Nationalist Party (KMT). martial law was detrimental to domestic morale and Taiwan’s A few years later, when Lee had accepted a Cabinet posi- international image. Preparations were already under way to tion and entered the ruling party, I asked him why he had rescind the relevant statutes, he assured us. changed his mind. The answer was a practical one. Most In fact, it happened the next year, and when Lee succeeded important public policies were set within the party, he said. If Chiang to the presidency a few years after that, he led Taiwan he wanted to have any influence over policy, he couldn’t wait steadily toward further democratic development.

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8 Briefs.indd 15 2020/8/4 下午10:18 ADVERTORIAL

AMGEN: Seeking to Make Healthcare Systems More Resilient Joyce Lee, General Manager of Amgen Taiwan

020 has been an extraordinarily during the outbreak. With fewer than 500 healthcare. Such an approach involves challenging year for people, cases and seven deaths, Taiwan is usually incentivizing people and healthcare 2 governments, and companies near the top of the list of those that have professionals to proactively monitor around the world. For biopharma performed best. health through disease screenings and multinational Amgen, which this year That Taiwan has been able to contain other preventative measures, enabling the turns 40, and its Taiwan affiliate, now in the pandemic so effectively is no accident, healthcare system to be more resilient. its fifth year of operation on the island, says Lee. Rather, it is testament to the Lee notes that big data collected through 2020 has become a time for reflection. strength of its healthcare system, the Taiwan’s NHI system could be leveraged As different countries experience foundation of which is the National to make better predictions of whether varying levels of disruption and negative Health Insurance program. NHI coverage patients are at high risk for certain impact from the spread of COVID- has helped Taiwan with preventing the diseases. 19, the company has been working to spread of COVID-19, a notable benefit for For now, the company is focusing identify what makes a healthcare system the island’s population. its R&D efforts on addressing areas resilient enough to effectively protect its Of course, there are areas where of unmet medical demand around the population in times of crisis. Taiwan can improve. Lee points to the world. One of the major issues Taiwan “We see from our observations of philosophy of “break it and fix it” that is facing is osteoporosis, which causes various markets across the globe that currently drives the island’s medical bones to lose density quickly and become in order for a healthcare system to be system. Patients wait until they are ill or brittle and prone to fractures. Screening considered truly resilient, it must embody injured to go to a hospital or clinic to seek for osteoporosis or even awareness three core characteristics: affordability, treatment. But Taiwan faces the reality of of the disease is not very common in efficiency, and sustainability,” says becoming a super-aged society by 2025. Taiwan, and patients frequently start to Joyce Lee, General Manager of Amgen A larger elderly population susceptible to receive treatment only after experiencing Taiwan. “This means that medicine diseases and serious injuries could create a fracture. Amgen Taiwan therefore and treatments should be accessible to a huge burden on Taiwan’s healthcare has long promoted the prevention and patients, that medical care is readily system and social fabric if not addressed treatment of osteoporosis, advocating available, and that the system is able to properly. The government will thus effective prevention mechanisms for those continue in perpetuity.” need to consider a different approach to in high-risk groups to allow them to Since the coronavirus began spreading maintaining the nation’s health. receive treatment as soon as possible. throughout the world in early 2020, a In Taiwan and globally, Amgen To this end, Amgen Taiwan actively common topic of discussion is why certain has been advocating the introduction cooperates with government departments, places have fared better than others of a “Predict and Prevent” concept in medical associations, and medical institutions to promote the concept of “Predict and Prevent.” The aim is to promote bone health, strengthen promotion of the importance of bone density through various platforms, and provide simple questionnaires and other testing tools to let people understand their own bone density and to identify high- risk groups that should undergo bone density testing. Last year Amgen Taiwan began collaborating with the Changhua County government and the Taiwan Osteoporosis Association to launch a county-wide osteoporosis screening program, which has since screened more than 2,200 Amgen Taiwan partners with the public and private sectors to promote the “Predict and Prevent” model to high-risk osteoporosis patients. Lately, help make Taiwan a world-leading society in terms of health longevity.

16 TAIWAN BUSINESS TOPICS • AUGUST 2020

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Amgen Taiwan and the Taichung Veterans strengthen shared decision making (SDM). health and quality of life. General Hospital (TCVGH) signed a Lee notes that since TCVGH has one In conclusion, Lee stressed that Memorandum of Understanding to of the best cross-discipline osteoporosis “Amgen Taiwan will continue to work undertake joint efforts for the prevention integrated care systems in Taiwan, Amgen with industry, government, and academia and treatment of osteoporosis, building Taiwan and TCVGH will work together to establish more comprehensive public- the Taiwan’s first Center of Excellence in to use digital technology to implement private partnerships and work together to digital management for osteoporosis to preventive medicine and improve people’s build a resilient healthcare system.”

00 0 5 000 00 500 00 05

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Amgen.indd 17 2020/8/4 下午10:22 ISSUES

A Legal Test for Chiropractic

An appellate ruling could clarify the profession’s status in Taiwan.

ear after year for more than a decade, AmCham’s White Paper has pointed out Taiwan’s near unique- Y ness among the countries of the world in denying legal status for the healthcare profession of chiropractic. The foreign-educated, foreign-licensed doctors of chiropractic prac- 脊骨神經醫學的 ticing in Taiwan have had to do so in a state of legal limbo – tolerated as long as they refrain from advertising their services and from making any claims of medical therapeutic efficacy. 法律挑戰 But a recent court ruling demonstrates the extent to which 在 that uncertain status leaves these highly trained professionals subject to harassment and possibly criminal liability. After four and a half years of judicial proceedings, a Taipei district court 年台北市美國商會年台灣 judge in June found Dr. Edward Chen guilty of practicing 中：國台灣一 physical therapy without a license, sentencing him to five 經 months’ imprisonment. Chen has rejected the option of paying 國執照台灣執 a fine of NT$150,000 in lieu of serving prison time, regarding 經長期 it as an admission of guilt and a precedent that would effec- 廣告稱 tively prevent any chiropractor from continuing to practice in 執 Taiwan. Instead, Chen plans to appeal the decision to a higher 期一 court, which he hopes will take a broader scope of evidence 人 into account. The case has attracted more than the usual amount of 任經年台北年六月 attention because Chen has long been the Taiwan chiropractor 陳照執行理行為有期 best known to the public. In the past, the media reported on 月 his treatment of prominent clients such as Foxconn founder 台15萬陳 Terry Gou, as well as on his family connections as the son- 為一有 in-law of the late P.K. Chiang, who served in such high-level 先經台灣執 positions as Minister of Economic Affairs, Vice President of 陳期理 the Legislative Yuan, and Acting Chairman of the Kuomin- 廣 tang. Chen is the only chiropractor included on the list of 陳長期為台灣名經 healthcare resources published on the American Institute in 一人 Taiwan website, and he has been providing volunteer profes- 名人人台銘 sional services to Taiwan’s Olympics baseball team and Boy 經長副長國民理主 Scouts. 美國台會發名 The significance of the appellate judge’s ruling will be wider 中陳一經 than a single court case. Until Taiwan finds a way to extend 中華 formal legitimacy to the chiropractic profession, its practitio- 理 ners will be working under a cloud of constant apprehension 會一經 and Taiwan’s patients will be deprived of the full benefits of a 台灣人工 widely recognized form of healthcare. 人有廣所 — By Don Shapiro

文沙蕩

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A Plan for Deepening U.S.-Taiwan Ties

Support is building for fellowship program for young and mid-career U.S. officials

n 1994, the U.S. Congress established the Mike Mans- field Fellowship Program, named for the former U.S. Senate I Majority Leader and Ambassador to Japan, with the aim of developing a “corps of U.S. federal government employees with 深化美台關係新計畫 proficiency in the Japanese language and practical, first-hand knowledge about Japan and its government.” The program has been highly successful in building better understanding and closer relations between the U.S. and Japan. In its quarter century of existence, it has “graduated” several hundred American special- 99年美國國會 ists in Japanese affairs who have built a network of personal 任美國美 contacts with Japanese counterparts. 1國日名 Now Congress, working from a plan developed by the West 日文日日政 Pacific Fellowship Project, is considering the creation of a similar 有一政工人 program to cultivate in-depth expertise on Taiwan within the 美日 U.S. government. With broad bipartisan support, a bill known 25年為美國名日 as the Taiwan Fellowship Act has been introduced in both the 日美國人 Senate and the House of Representatives. The Senate version (S. 路 4327) is being sponsored by Senators Marco Rubio (R-FL) and 美國國會所 Edward Markey (D-MA), while the House of Representatives bill (H.R. 7414) has been introduced by Congressmen Ami Bera 美國政台灣一名 (D-CA) and Ted Yoho (R-FL). 為台灣國會廣 Backers of the legislation hope that it can be passed as early as September and signed by President Trump shortly thereafter, 歐民主 enabling the first cohort of fellows to be welcomed in Taiwan in 民主 the summer of 2021. Under the program, applicants chosen for the program would first receive training in Taiwan in Mandarin 人9月 language and the local society and culture, and then be embedded 後總統生第一 within a Taiwan government agency or private-sector organiza- 主2021年台灣 tion related to their area of specialization. 人先台灣中文社會 Margaret K. Lewis, a professor of Chinese and Taiwanese 文後台灣 law at Seton Hall University who serves as a member of the 政民工一段 Taiwan Fellowship’s advisory council, notes that “for people 中國台灣梅台 my age (mid-40s) and younger, it’s been increasingly common 灣會年 for Chinese language training to be done in China rather than 5年人中文 Taiwan, which means that fewer Americans have spent time 中國行台灣 studying in Taiwan.” Since the long-term health of the U.S.- 台灣美國人美台長 Taiwan relationship requires that more Americans understand 期發台灣美國人 Taiwan, she sees the Taiwan Fellowship Act as an important step 為台灣 in that direction. Supporters of the project have encouraged American friends 人台灣美國人 of Taiwan to contact their Senators and Congressmen to urge 區日 early passage of the legislation.

— By Don Shapiro 文沙蕩

TAIWAN BUSINESS TOPICS • AUGUST 2020 19

8 issues.indd 19 2020/8/4 下午10:23 COVER STORY

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8 CoverStory.indd 20 2020/8/4 下午10:33 RECOVERY

PLANNING FOR TAIWAN’S FUTURE PROSPERITY An Exclusive Interview with National Development Council Minister Kung Ming-hsin

Taiwan has done a stellar job of managing the COVID-19 pandemic, and has experienced comparatively minimal economic damage. Now it is time to start thinking about how it can capitalize on its strong high-tech capabilities and the international goodwill it has earned to become a key player in a changing world economy.

Taiwan Business TOPICS was fortunate to have the opportunity to speak with newly appointed National Development Council Minister Kung Ming-hsin this July about his economic outlook for Taiwan, how the government is helping the hardest-hit industries, and how it plans to cope with changes to global supply chains. Below is a condensed PHOTO: NDC version of his remarks.

How much of a setback has the Taiwan economy suffered due to the coronavirus? How fast do you see the 規劃台灣未來的繁榮 recovery happening? Since Taiwan has weathered the COVID-19 pandemic comparatively very well, any negative effects it has expe- 國家發員會部長明 rienced result mainly from the rest of the world being impacted more severely. Once we have a widely available vaccine, the virus will become like just another flu bug. But until then, globalized industries will have to deal with the consequences of the pandemic. For Taiwan, the most immediate and noticeable impact has been to international tourist numbers. According to the Taiwan Tourism Bureau, within the first five months of 5 2020, tourist visits fell 75% from the same period last year. This has resulted in revenue losses of NT$300 billion for this sector. Another effect of the pandemic has been a substantial reduction in consumer spending. With a growing proportion of the workforce unemployed or forced to work reduced hours, there has been a corresponding decrease in consumers patronizing restaurants or engaging in leisure activities. Fortunately, Taiwan was able to contain the coronavirus without needing to initiate a lockdown. And despite a drop in traditional consumer activity, e-commerce and deliv- ery platforms have gotten a real boost. As restrictions have begun easing starting from early June, and with the government’s stimulus voucher program kicking off in July, we

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RECOVERY

expect that spending will normalize in tourism have seen some revival in recent As for recovery, we will need to see the second half. months, those that cater more to interna- how quickly the COVID-19 vaccine is Thirdly, the pandemic has pushed tional travelers are still suffering. We need developed and distributed. In the mean- nations to implement much more proac- to help those hard-hit businesses. time, we must rely on other meth- tive, expansionary monetary policies – Traditional industries such as textiles ods to reduce the spread of the virus delivering economic relief packages, rais- have also taken a big hit. Taiwan has and its consequences. This is expected ing budgets, and increasing borrow- a lot of firms that produce functional to be quite difficult for companies in ing and money supplies. Given Taiwan’s textiles, especially for sports – running the industries I mentioned, and we will good position throughout the pandemic, shoes, for instance. However, with inter- therefore need to provide them with money has been continuously flowing national sporting events on pause, sales some extra support. Our relief pack- into the country, causing the New Taiwan of these goods have suffered. In addition, age 3.0, announced in late July, allocates Dollar to increase in value. However, this the postponement of the Tokyo Olym- NT$130.6 billion to aid cross-border is troubling to us because a change in pics has forced these companies to put all activities, as well as traditional exports. currency value could also influence real of the materials they’d prepared for the estate prices. We will therefore need to event in storage. Given the impact of the pandemic and find a way to cope with this possibility. Besides textiles, there has been lower U.S.-China trade tensions, the current Lastly, exports have been and will demand for installation of machinery, situation is widely seen as a time of continue to be heavily impacted by the leaving Taiwan’s machinery and machine potential major transformation for the virus. The Directorate-General of Budget, tools manufacturers gasping for air. international economy and supply chains. Accounting and Statistics estimates that Traditional industries overall have experi- What can the Taiwan government and the real growth rate of exports in the enced losses of 10 to 20%. business sector do to take the fullest first half was minus 3.1%. Things don’t Other the other hand, Taiwan’s ICT advantage of this opportunity? look so great for the second half either, as [Information and Communications Tech- We have witnessed the changes the output is expected to decline even further. nology] industry has been doing quite U.S.-China trade dispute has caused over well through this period, experiencing the past couple of years, and the current Which sectors have been the hardest growth of around 20% in Q2. The virus pandemic has accelerated a number of hit, and what will it take to restore their has forced us to make lifestyle changes existing trends. One thing we are antici- vitality? and working from home has increased pating is a rapid increase in Industry 4.0 Of course, the decline in tourists to demand for certain resources. As a result, transformation, considering the changes Taiwan has severely impacted travel agen- there needs to be an increase in data taking place to our lifestyles, workstyles, cies, airlines, and hotels. Although hotels centers and servers, and much of that is and factory operations. To be ready for and travel agencies that focus on domestic produced by Taiwanese companies. this change, we will need to continue to

新型冠狀病毒使台灣經濟遭受多少損失？您估計要多快才能復原？哪些部門受到的衝擊最大，恢復活力需要採取什麼措施？ 00 5000 00 0

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boost our “smart” capabilities. Taiwan has been working on this since 2016, so I think we are on the right track. A major shift is also happening in the industrial division of labor. In the past, this structure was based on keeping costs down. The supply chain would be divided into many segments, with most production taking place in low-cost locations. However, the virus has proved that these supply chains are extremely vulner- able. The distribution of production is very complex and if there is a problem in one portion, the entire supply chain is affected. In the future, we will want to move toward shorter, less complex supply chains. So, the question now is who will NDC Minister Kung Ming-hsin discusses his outlook for Taiwan's economic recovery with TOPICS Deputy Editor Jeremy Olivier. gain a greater share of these new supply PHOTO: NDC chains? In the future, we will not focus so much on minimizing the cost of ments have taken during the free trade just one month. production, but rather on which suppli- and globalization trends of the past In the future, we won’t limit our role ers can play a critical, irreplaceable role few decades. In fact, governments can to just face mask production; we will in that production. This represents a become key players, especially where also get involved in numerous different huge break from the previous mindset. it concerns the rapid consolidation of industries and areas, including smart-city Taiwan will begin moving in that direc- resources. We saw this in the Taiwan development. These are areas considered tion, producing components that cannot government’s successful mask-sourc- to be within the public sphere. It is there- be easily replicated. ing efforts. Under normal circumstances, fore important for the government to At the same time, we expect the just installing the machines to make these work closely with the Taiwanese public government to become much more masks might require up to half a year, on these initiatives. involved in this process, in contrast to but with government communication and Another thing I want to point out is the more hands-off approach govern- coordination, we were able to do this in that industrial development isn’t limited

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to industry itself, but also concerns development opportunities that the next to expand that program in the future, issues of national security. During this generation will bring? focusing on three main areas: 5G, which pandemic, we’ve seen that if certain In the past, Taiwan industry mostly will completely transform international industries are strong, national security played the role of follower, and it there- communication and IoT operations; AI is bolstered. This is why we are moving fore didn’t need to pay too much atten- and how to put big data to good use in ahead vigorously with developing and tion to future industrial developments. providing better services; and semicon- ensuring sufficient inventory of impor- But as time goes on and Taiwan’s posi- ductors, which are the core component tant materials under the government’s six tion improves, industry leaders will for all of these technologies. core strategic sectors initiative. diminish, and we will have to start In addition, we are expecting simi- planning for the next generation. Our lar infectious diseases to appear every For Taiwan to maintain the atten- Department of Industrial Technology few years. We will thus need to go a tion and trust it has recently been receiv- previously introduced the A+ Program, step further in researching how to turn ing from the international community, it which aimed to encourage companies our experience combining technologies cannot go it alone. How can it work with to invest in R&D for high-value-added, to fight COVID-19 into a “total solu- the world’s big companies to plan for the cutting-edge technologies. We want tion” to share with the rest of the world. Taiwan’s digital economy and medical information collection are already quite thorough and up-to-date, but we need to think about how we can use DNA big data, AI, and other tools for data analysis on a large scale. I think this will play a major role in improving the accuracy of medical treatment. Information security is also a critically important issue, both in terms of industrial competition and national security. Taiwan has an opportunity to combine important sectors to create a future information-security plan, especially with the arrival of 5G. While multinationals may have cybersecurity standards, as industries continue developing, Taiwan can really get President Tsai Ing-wen tours a factory producing face masks in February. Minister involved in the latest trends, especially Kung says that Taiwan's mask-sourcing efforts are an example of how Taiwan can given its status as one of the top targets become a key player in future economic development. PHOTO: PRESIDENTIAL OFFICE

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of hackers and cyberattacks. It can ment programs targeting Taiwanese busi- During your presentation at an serve as a test bed for these new defense nesses operating in China have raised a AmCham luncheon in mid-May, you systems. Several multinationals have combined NT$1.7 trillion in investment mentioned that the government plans to already expressed interest in collaborat- funds and repatriated capital. make Taiwan an R&D hub for AI and ing with Taiwan in information security, These suppliers may not, in the end, high-end manufacturing and develop including Microsoft, Google, and Cisco. shift all of their China operations back Taiwan’s space industry. Can you tell us In terms of overall economic health, to Taiwan. Nevertheless, Taiwan’s efforts more about how the Tsai administration Taiwan is doing just fine. Over the past over the past several years to increase plans to achieve these goals in the next four years, our economy has grown an smart manufacturing – as well as the four years? average of 2.6% per year, and we hope introduction of 5G-powered smart facto- We plan to continue working on to increase this number in the future. ries – will hopefully encourage compa- moving high-end production back to The more effort we put in, the more we nies to use Taiwan as a hub for more Taiwan. As for low-end production, will exceed that figure. The future looks high-end manufacturing processes. This the key segments will probably move to bright and opportunities are numerous. would increase competition and improve ASEAN countries, with another portion For example, our three major invest- Taiwan’s general economic outlook. taking place in Europe and the U.S.

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We also plan to strengthen domes- already launched a national program, producing ground-based receivers and tic industries via three major campaigns which focuses on launching remote installing communications equipment aimed at assisting them with introducing sensing and radar satellites, as well as on existing satellites. Taiwan’s hardware smart manufacturing-related technolo- promoting private space exploration sector is very strong, so we won’t rule out gies and equipment, as well as assistance enterprises. the possibility of working with multina- with big data analysis and AI. Those Future 5G development will have a tionals such as SpaceX or Amazon. campaigns are: major impact on communications, but the I’d like to leave off by thanking • Making industries “smart”: Creat- issue with 5G is that its high frequency AmCham Taipei for its efforts. The ing smart production lines for and short range of transmission will leave Chamber has worked hard to collect printed circuit boards, servers, many places without adequate coverage. and present the Taiwan government textiles, food, and others. We will thus employ low-orbit satellites with many great suggestions from many • Digitalization: Improving the digi- to compensate in cases where 5G is not different industry areas over the years. talization capabilities of small and sufficiently available. Regardless of whether we can immedi- medium enterprises and promot- Meanwhile, we can play a part in ately resolve all the issues, we’re aware ing clustering of the key character- developing satellite communication of what they are, and it is very important istics of these enterprises to improve systems, such as producing components. for us to continue working through them supply-chain information flow. Taiwan’s communication systems are in the future. • Innovative applications: Accelerat- quite good, but we will need to conduct ing the usage of 5G and AI applica- further research into how satellites can — The interview was conducted by tions among SMEs. improve these systems. We will do some Jeremy Olivier, with editorial assistance As for Taiwan’s space industry, the satellite launches, but the main focus will by Jack Lee and Patrick Lu, and transla- Ministry of Science and Technology has be on improving Taiwan’s strong suit of tion to English by Henry Kuo.

HOW TAIWAN SEMICONDUCTORS WON AGAINST COVID-19

Insights from SEMI Taiwan’s Terry Tsao

hen Terry Tsao heard Pres- areas and the key to future innovation chip maker, recorded an 81% increase in ident Tsai Ing-wen mention growth,” he says. net profits for the second quarter this year. semiconductors as one of That semiconductors are so vital to Many companies in the tech supply Wthe six core strategic sectors the Taiwan technological innovation has become even chain feared a shortage at the begin- government would focus on over the next more apparent during the current global ning of the pandemic and panic-bought four years during her inaugural address public health crisis. As a safety measure, backup supply, Tsao says. Huawei and this May, he says he almost cried with a growing number of commercial opera- other Chinese companies, foreseeing happiness. The chief marketing offi- tions have chosen to institute work-from- U.S. pressure on TSMC to stop selling cer and president of the Taiwan office home policies in the wake of the COVID- them chips, also bought up a substantial of SEMI, a global industry association 19 pandemic. And millions of schoolchil- amount in preparation. representing the semiconductor sector, dren around the world have had to attend Much of the initial worry was prob- had been advocating just such a develop- class virtually through video-conferencing ably unfounded, however. Chip produc- ment for the past four years. and other technologies. tion was never really disrupted, thanks “Semiconductors are the core driver Given the huge shift in lifestyles and to Industry 4.0 developments. Most of all the technologies Taiwan’s govern- workstyles, the demand for electronic of Taiwan’s fabs are fully automated, ment wants to push forward under 5+2,” devices and large-scale data centers has whether at home or in other locations says Tsao, referring to the 2016 initia- increased drastically. And while many like China. Even in places where human tive to develop Taiwan’s smart machin- industries are facing very stormy weather labor is needed, many functions can be ery, IoT, green energy, biotech, defense, in 2020, the semiconductor ecosystem is performed remotely. and circular economy capabilities. “Semi- thriving. Taiwan Semiconductor Manu- Tsao also emphasizes that the relative conductors are embedded in all of these facturing Co. (TSMC), Taiwan’s largest success now being enjoyed by Taiwan’s

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semiconductor companies would not have been possible without the government’s excellent early response to the COVID-19 pandemic, which kept disruption to business operations across industries to a minimum. “We really haven’t seen any impact to our daily lives or business activity,” he says. “In fact, some of my friends who work for international companies told us that their HQ are very pleased about the uninterrupted performance of Taiwan’s fabs or manufacturing, considering that many other locations have likely had to implement controls or stop production.” At the same time, there is no guaran- tee that the current positive conditions will continue indefinitely. COVID-19 aside, semiconductors’ importance to the world economy means the business will Terry Tsao says that the government's new semiconductor-focused initiatives are sometimes be affected by geopolitical encouraging, but urges the formation of a Cabinet-level national council for the industry. pressures. The U.S.-China trade dispute PHOTO: SEMI has starkly exposed this reality, and has exacerbated the problem of trade barri- the U.S., he says, play complementary government and industry on overall, ers – something that SEMI and the roles in terms of semiconductor produc- big strategy.” Based on those conversa- industry have long been vocal in opposition. U.S. companies constitute the larg- tions, the government will be better able tion to. est market share of fabless IC design sales to make decisions on long-term strategic “If you think about the supply chain and they rely on Taiwan-made semicon- resource allocation to align with indus- for a company like Apple, their IC ductors for their business. try needs. design is probably done by a company The TSMC fab in the U.S. will attract Tsao also advocates the establishment in China or Taiwan,” Tsao notes. “Then the company’s Taiwan suppliers to invest of an official office for implementing they outsource chip manufacturing to there as well, creating a supply-chain clus- national semiconductor-related strategic a foundry in South Korea, Taiwan, or ter around the facility. The presence of the initiatives, similar to the Smart Machin- China” where the equipment being used fab and its satellite operations will lead to ery Promotion Office in Taichung. was made in the U.S., Europe, or Japan. tighter cooperation with TSMC’s Ameri- “These initiatives the government is The supply chain is incredibly globalized. can customers and strategic partners. launching are cross-ministerial, which Tsao argues that punitive trade barri- Beyond the direct economic benefits takes a lot of coordination,” he notes. ers erode trust, causing countries to of building the fab in the U.S., the proj- “An official office would be beneficial eventually build up their own isolated ect could play a role in attracting much in that respect. And if the government ecosystems with less efficient produc- needed engineering talent from the States. feels overburdened, we can take a public- tion. A less globalized system weakens Young Taiwanese talent could also be sent private-partnership approach, with the industry as a whole. “So really, if you there for training and broader cultural industry taking the lead with the govern- want to use trade as a cudgel to punish and linguistic exposure. The upfront costs ment’s support.” countries, you often just end up harming of land, construction, and electricity to In addition, Tsao encourages both yourself,” he says. power the fab may be huge, but the long- government and industry to treat the issue On the other hand, the existence of term payoff could be much bigger. of talent shortages as an urgent prior- a strong industry like Taiwan’s semicon- Looking to the future, Tsao says that ity. “Even though many young Taiwanese ductors can be leveraged to help advance the government’s new initiatives are are choosing to obtain degrees in STEM the country’s position on the interna- encouraging, but it can still do more to fields, it’s still not enough,” he says. tional stage. The industry’s reputation ensure that the island’s semiconductor More non-STEM talent is needed for quality and technological prowess ecosystem remains robust and globally as well, since the industry also needs strengthens Taiwan’s value proposition competitive. He urges the formation of a talented sales, marketing, and HR and may draw interest from countries Cabinet-level national council for semi- professionals. “We want the semicon- looking to do more business with reliable conductors, composed of industry leaders ductor industry to continue to be a top democratic partners. and government officials. career option for the younger genera- That is why Tsao expresses enthusi- “In Taiwan, this industry is so stra- tion,” he says. asm over TSMC’s plans to build a US$12 tegic,” he says. “We should therefore billion chip fab in Arizona. Taiwan and encourage communication between — By Jeremy Olivier

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RECOVERY TAIWAN’S BOLD, SUSTAINABLE POST-PANDEMIC FUTURE

Promising new opportunities have been opening for Taiwan’s economic development.

BY N. MARK LAM

lthough COVID-19 has wrecked and citizens work together to pursue an numerous economies around the enlightened path toward a green, sustain- world, Taiwan has been a nota- able future that helps stave off the poten- bleA exception. Remarkably, Taiwan has tial perils posed by climate change. emerged from the pandemic not only Taiwan’s government has made the almost unscathed, but with even greater 5+2 Innovative Industries Plan its “indus- confidence and prospects for growth than trial transformation” blueprint. The plan anytime during the last two decades. encompasses: 1) biomedicine, 2) clean Pundits have tended to focus on energy, 3) smart machinery, 4) defense how well a rejuvenated Informa- industries and aerospace, 5) new agri- tion and Communications Technol- tech, 6) circular economy, and 7) the Asia ogy (ICT) industry will enable Taiwan Silicon Valley project. While these are to perform relative to China in terms related to next-generation, knowledge- of GDP growth. That view is rooted in based industries, such as Artificial Intel- outdated thinking. More significant is ligence (AI) and the Internet of Things that Taiwan’s deft response to COVID- (IoT), they also stress sustainability. 19 provides it with the perfect opportu- Leveraging its success from tackling nity to transform its economy – as long COVID-19, Taiwan should make sustain- as its government, business, institutions, able development its core value and

新型肺炎大流行後臺灣應大膽邁向永續的未來經濟發所提供的新機會 5 文 5

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overarching goal, integrated into every aspect of the economy. Taiwan’s success in fighting the coronavirus demonstrates the value of social capital (an excellent public health system and highly cooper- ative social infrastructure) together with human capital (a well-educated, well- disciplined, and law-abiding citizenry). These are among the same critical (if often overlooked) resources that could propel the Taiwan economy to succeed in its “sustainability transformation.” Three years ago, when economic pessimism enveloped Taiwan and shortly before the Tsai government announced the 5+2 Plan, I wrote a commentary for this magazine entitled “Getting the Taiwan Economy Back on Course.” I argued that Taiwan must “focus on its and economic stagnation. industries, since Taiwan has one of the valuable characteristics and core compe- I advocated tackling the follow- world’s most efficient healthcare systems, tencies” – speed, flexibility, value (price/ ing challenges: upgrading R&D and and 3) sustainability industries such as performance ratio), customization (ability manufacturing techniques; adjusting green building technology. to serve niche markets efficiently), clus- Taiwan’s capability and mentality to Today, those observations seem more tering, and international connectedness focus more on software, innovation, relevant than ever. with the world, not just China. and creativity; diversifying industries The U.S.-China trade dispute has I cautioned that Taiwan must avoid and markets; and revamping Taiwan’s been an unexpected boon for the Taiwan the easy path of focusing on short- education system to improve its STEM economy. A noticeable shift of manufac- term gains, over-relying on the Chinese and English-language skills. turing investments away from China to market, blindly focusing on cost cutting, Finally, I recommended that Taiwan India, Southeast Asia, and Taiwan has emphasizing volume production, and fail- diversify into non-IC or computer-related occurred, with ICT manufacturers such ing to pay employees globally competi- industries by leveraging its core compe- as Quanta moving some of their high- tive wages. These tendencies have caused tencies. I suggested three potential indus- end operations back to Taiwan. Popular Taiwan to lose the comparative innova- tries: 1) high-value-added agriculture and financial TV programs around the world tion edge it had in the 1980s and 1990s aquaculture such as fruits, flowers, and have trumpeted the revival and prow- and to suffer the last 20 years of wage seafood, 2) biotech and medical-related ess of Taiwan’s ICT industry, while the

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Taiwan Stock Exchange and some ICT enabling Taiwan to articulate and pursue its growth phase, surpassing NT$1.2 tril- companies have enjoyed their best show- a compelling vision for its future. lion (about US$40 billion) in market capi- ing in decades. talization after several decades of invest- A recent report by Evan A. Feigen- Taking the lead in sustainability ment. Fresh off the COVID-19 success, baum of the Carnegie Endowment for this industry is likely to play a rapidly International Peace identified five press- Some missing elements are present expanding, perhaps explosive, role in ing challenges for Taiwan’s future and in the 5+2 Plan, which sets the stage for Taiwan’s sustainability transformation. proposed specific solutions to enhance Taiwan’s green transformation by call- In addition, the environment may be Taiwan-based innovation, improve part- ing for renewable energy to meet the goal ripe for Taiwan to quickly “green” its nerships with the U.S. and other interna- of accounting for 20% of total electri- existing ICT industry. Leading compa- tional players, and boost Taiwan’s stand- cal generation by 2025. Offshore wind nies such as Apple are now revamping ing in the global marketplace. power has been designated as the leading their supply chains. Apple has committed While Feigenbaum persuasively argues energy source. to be carbon neutral by 2030, pushing its that Taiwan needs to re-orient itself away Reaching the target in a relatively sustainability ambitions beyond its corpo- from semiconductor and chipset design short period of time appeared to be an rate walls to include its vast supply chain and fabrication to promote new future- exceedingly ambitious objective. But the and the lifecycle of all its products. If the facing industries, he basically limits his progress so far has been impressive. For Taiwan ICT industry seizes this oppor- focus to innovation in ICT-related sectors example, the Taiwan Semiconductor tunity to implement sustainable practices – software, machine learning, AI, IoT, Manufacturing Co. (TSMC), Taiwan’s proactively and efficiently throughout its data science, and cybersecurity – with most important company, recently inked operations, Taiwan-based suppliers will some mention of the biomedical/health- the world’s largest Power Purchase have a chance to go net zero and get an care industry. He suggests that if Taiwan Agreement (PPA) to date with Ørsted, the edge on their competitors. can integrate advances in software with Danish company that is the world leader China’s trade disputes with various its core strength in hardware, it will in offshore wind technology. The Taiwan Western countries also provide potentially create a major point of differentiation Strait has some of the world’s best wind big openings for Taiwan’s industry. As from competitors. He also urges Taiwan resources, and Taiwan’s foray into national security comes to the forefront to add value by innovating in areas offshore wind energy gives it an oppor- and cost is no longer the major consider- not dominated by big U.S. or Chinese tunity to acquire the know-how needed ation, Taiwan gains a distinct competi- platform companies such as Amazon, to become a major player in the global tive advantage over China. Taiwan-based Google, Alibaba, and Baidu. supply chain. companies should use this opening to Feigenbaum’s analysis has received Taiwan’s biomedical industry – green their entire supply chain, something widespread attention. Though pertinent another element of the 5+2 Plan – is also that was previously impossible due to the and insightful, however, it falls short of showing signs of maturity and entering intense cost pressure that Chinese compa-

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nies exert on the market. Companies such as Unilever and in the 1960s, California imposed increas- As China threatens to retaliate against Orsted have demonstrated that willing- ingly tough automobile emissions stan- Western competitors, Taiwan should be ness to look beyond quarterly results dards despite strong industry opposi- able to help fill the void. Besides world- is necessary to achieve successful green tion, leading to a dramatic decrease in air leading ICT companies, Taiwan has a transformation. COVID-19 has also pollution. Since the mid-1970s, the Cali- relatively complete and robust indus- served as a wake-up call that GDP growth fornia Energy Commission has halted try infrastructure, assets, and skills in a alone cannot equal national success. growth in the state’s per-capita electric- broad range of sectors, including steel, ity use, which had been growing steadily shipbuilding, advanced carbon fiber, The California model for almost 50 years, obviating the need machinery, and petrochemicals. With to build new nuclear power plants. More the benefit of these resources, Taiwan California has long led the U.S. recently, California has been replacing could become a leader in “sustainability with the most successful environmen- natural gas plants with solar-plus-storage transformation” much more rapidly and tal and energy-related laws and poli- options that are zero carbon. more easily than many other countries. cies, with results to prove it. Beginning A recent report from the Goldman Further, of the six major forms of capital – financial, manufactured, intellectual, human, social, and natural – Taiwan has them all, some in abundance (even natural capital, thanks to the emergence of solar and wind power). In line with green transformation, Taiwan will need to embrace the growing international recognition that GDP is an inadequate measure of a nation’s welfare. This view has been championed by two Nobel Laureates, Joseph Stiglitz and Amartya Sen, and the U.S. Bureau of Economic Analysis recently embarked on a new initiative – “GDP and Beyond” – that broadens the concept of economic well-being to include everything from income distribution to healthcare and An offshore wind farm in the Taiwan Strait. Taiwan's efforts in this area could make macroeconomic sustainability. it a major player in the global supply chain. PHOTO: ØRSTED

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School of Public Policy at the Univer- Capital market favorites green transformation, Taiwanese compa- sity of California, Berkeley predicts that nies and citizens will benefit. plummeting solar, wind, and battery Recently, a seismic shift has been costs can accelerate the arrival of a clean underway in the investment world as Creating a clear narrative electricity future. Given strong govern- financial capital has adopted a more ment policies to foster reliable power favorable stance toward sustainable Finally – and most importantly in without coal or new natural gas plants, companies and green (ESG) investing. igniting Taiwan’s green transformation – the report sees the feasibility of scal- Evidence supports ESG investing because the Taiwan government needs to enun- ing up renewables to achieve 90% clean sustainable companies have delivered ciate a clear and simple narrative: that energy, reducing health and environmen- better financial results. Taiwan can achieve a sustainable future tal damages and increasing energy-sector Such financial luminaries as Larry that will be good for both business and employment. Fink, chairman and CEO of BlackRock, the public. The California experience teaches and Michael Bloomberg, the former What has been an economy based on that, to achieve sustainability transfor- mayor of New York and founder of the relatively low value-added electronics mation, Taiwan needs to set ambitious company bearing his name, have been manufacturing now has the potential to goals and take strong policy actions. active in urging corporate boards and become a world-leading, sustainability- Fortunately, unlike the U.S., there is executives to take sustainability to heart. driven economy. Taiwan cannot afford to no extremely powerful and deeply In August 2019, the Business Roundtable look in the rearview mirror to shape its entrenched fossil fuel industry in Taiwan revised its Principles of Corporate Gover- future. It must be bold enough to tackle to fight those efforts. Moreover, over nance to state that companies should not the biggest issue of our time – climate the last 30 years a robust environmen- concern themselves only with maximizing change – not only for the well-being of tal movement has emerged in Taiwan, shareholder value, but should consider its citizens, its future generations, and the with five major NGOs exerting profound the interests of all stakeholders. planet earth and all its inhabitants, but influence on government policies. Favorable market valuations for also for the future of its economy. Energy policy must constitute a key green investing encourage companies to aspect of Taiwan’s green transforma- enter sustainability-related businesses as tion. Besides the steady shift to renew- markets channel capital toward them. — N. Mark Lam is a Taiwanese- able energy, it is even more immediately Moreover, the trend encourages exist- American lawyer, businessman, and important to focus on energy efficiency ing companies to act more sustainably. author. He is currently a Visiting Expert measures, including setting proper price Companies known for sustainability, at National Cheng Kung University signals and reducing energy use through like Taiwan’s Delta Electronics, receive (NCKU) focusing on sustainable devel- effective incentives and compulsory more attention and better valuation from opment goals and innovation. regulations. global investors. If Taiwan succeeds in its

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MEET DANIEL TSENG OF CORNING

Daniel Tseng, President of Corning Display Technologies Taiwan, is constantly looking for new, creative ways of approaching problem-solving and decision-making. In his 17 years at the U.S. tech multinational, Daniel has developed a distinct appreciation for the company’s core values, which he incorporates into his management style.

Daniel sat down with Taiwan Business TOPICS Deputy Editor Jeremy Olivier in July to discuss career development, mentorship, and the challenges of taking on brand- new roles at a company.

You hold bachelor’s and master’s systematic way, which leads to more knowing it would make my career more degrees in industrial engineering, as well effective solutions. comprehensive. as an EMBA from NTU. How did your Several years into my career, I After I joined Corning, three main education prepare you for your eventual decided to study for my EMBA. While things made me want to stay. For career? at NTU, I met leaders and managers one, there is a close-knit, family-like One of the major lessons I took from a wide variety of different indus- working environment at the company. away from studying industrial engi- tries, which introduced me to a diversity At Corning, employees really help and neering was that there is always a better of views and ideas. These people also look after each other. way of doing things. I always found this stood out as role models for me, partic- Second is Corning’s culture of philosophy very insightful and it pro- ularly in the high standards they set for innovation. We are always hearing vided me with the foundation for my themselves and their emphasis on cre- from corporate about new products, core competencies in business. ating a good work-life balance. They new technology, and new initiatives. This major also provided me with provided a great benchmark for me to This makes life at the company more the skills to approach work with initia- work up to and really motivated me. exciting, and encourages us to keep tive and creativity. Working at Corning, working to maintain Corning’s posi- I’ve found that the company encour- You’ve now been at Corning for tion as a global leader in different ages this kind of thinking, so this was almost two decades. What about the industries. another concept that helped me in my company initially attracted you and Lastly, Corning offers great job-rota- career. why did you decide to stay? tion opportunities. This has been the Another important skill I developed When I started at Corning, I had launchpad for many success stories, through my bachelor’s and master’s just come back from China after a two- including my own. I actually started in programs is systematic thinking. Usu- year stint there. At that time, I already the manufacturing side at Corning, but ally, when we solve problems, we try had both high-tech industry and cross- when I asked if I could move over to to find the fastest, easiest solution. But border working experience. What I the commercial operation, the company industrial engineering taught me how didn’t have was experience working in took a risk and agreed to it. This really to approach problem solving in a more a foreign company. So, I took the job, inspired and encouraged me.

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Daniel Tseng.indd 33 2020/8/4 下午10:37 EXECUTIVE SUITE

You recently took on an additional cedures used in our Taichung plant – The second step is to work on net- role as Chief Marketing Officer for the separating the team there into three working. One mentor gave me a month- whole of Corning Display, working different groups – became a model for long homework assignment to go speak closely with regional presidents and corporate HQ to reference. to all of the company’s senior exec- commercial function leaders to imple- We also have very high-quality utives, even if just for a couple of ment customer-management best employees. They have really shown up minutes each. I was hesitant at first. practices. How are you adjusting to this for each other throughout this pan- Why would these big shots want to talk transition? Did it come with any unique demic. to a small fry like me? I soon discovered challenges? Doing well is not enough for us, that they were all very happy to get to I’m still the president of Corning though; we also need to do good for know me. It increased my visibility at Taiwan and am finding the additional others. So, we are now producing face the company. role of CMO to be a good fit. Taiwan is coverings at our Tainan plant, which To round out my career, my men- a mature market for us, and we have a are sent to Corning employees around tors taught me that unique leadership is very experienced team here. The com- the world. essential. Up to that point, I had been pany saw this and wanted to leverage using other leaders as benchmarks for our accumulated skills, strategies, and What do you see as your main myself, but former AmCham Taipei know-how to recreate our success story strengths as a manager? Is there any Chair and Corning Taiwan President in other regions, to share our insights area where you’d like to improve? Alan Eusden pushed me to develop my globally. I would say that firstly, I want to own leadership style. That was very sig- Of course, it will not be easy. hear the truth, even when it’s a difficult nificant for me. Different regions have different back- truth to hear. Without that, I might mis- grounds, cultures, and behaviors. We judge a situation. So, I encourage all my If you had one piece of advice for are not always exactly sure how to employees to speak frankly. young professionals in your industry, apply Taiwan’s experience in each sit- I also challenge my team to think what would it be? uation. So, I am constantly researching creatively and to discover new ways of If I had to choose just one, it would and developing in my new role. I have doing things. A healthy company is one be something one of my former men- to really apply those skills of initia- that constantly strives to think outside tors told me. He said that there are two tive and creativity that I learned during of the box. ways that talented people might fail in my industrial engineering education. In addition, I try give credit to my their careers: some get phased out and Luckily, the company has been offering team every chance I get – I can’t and some get burned out. great support and guidance as well. don’t do everything myself. I need a In order to avoid getting phased strong team, and a strong team needs to out, you need to keep up with a con- The COVID-19 pandemic has had receive their fair share of the credit in stantly changing market and determine an unprecedented impact on supply order to grow. how to adjust and match your skills chains in China. Can you describe All that being said, I do think I need to the company’s needs. If you don’t Corning’s experience throughout the to improve on prioritization. We have want to get burned out, you need to pandemic? How has the company dealt so many tasks to do these days and find time to take care of your health with the effects of this disruption? want to try new things, but our time and not become too overburdened In Taiwan, we have thankfully and resources are limited. Sometimes with work. experienced very little impact on our my team has to remind me that we operations. There are some key fac- might not have time for certain projects How do you like to spend your lei- tors for this. One is our government’s or need to save them for later. sure time? What do you find is the best outstanding virus management, trans- way to get “recharged?” parency of information, and rapid Did you have a mentor during the I sometimes find it hard to separate response. That seriously helped us with early stages of your career? How did work and life because many times the making good decisions efficiently. For their guidance shape you as a profes- two mix together. However, one thing example, many Taiwanese employees sional? I took away from the EMBA program became stuck in Wuhan when the virus Corning has always been great about at NTU is that I can integrate work and began spreading. Through the govern- providing us with mentors, and has a life and enjoy the time I spend with my ment’s excellent help and dialogue with program to develop talent step-by-step. team and my customers. the other side, we were able to ensure While working at the company, I For the times I’m not fully “at their safe return. We are very thankful have been lucky to be assigned several work,” I like to exercise, listen to edu- for that. different mentors. Through this expe- cational lectures, go to art exhibitions, Corning has an amazing team of rience, I learned that the first step in a or enjoy good food and quality time experts, who gave the company very person’s career is improving their per- with friends and family. It gives me a good advice. We implemented our virus formance. Once I began doing this, my chance to relax, and sometimes when control protocols and decision-making career prospects really started opening I’m doing these activities, I come up based on sound scientific data. The pro- up and I began rising in the company. with good ideas for my job!

34 TAIWAN BUSINESS TOPICS • AUGUST 2020 INDUSTRY F CUS

The Value of Innovation Plus Experience

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TAIWAN KEEPS MERCURIAL CORONAVIRUS AT BAY

The next step is to fully reopen safely and share disease-control expertise with the world.

BY MATTHEW FULCO

he scene at Taipei’s Song- of stealth transmission that has shan Airport on a Saturday in occurred in Singapore and Hong IN THIS REPORT July was surreal, at first blush Kong, which were both once hailed utterlyT removed from the coronavirus as epidemic-control leaders. pandemic that has shut down vast Geography has worked in Tai- swaths of the world over the past wan’s favor, too. “In a pandemic, six months. Passengers packed the being an island country is a definite domestic terminal. Flights to the off- advantage if you do everything right,” shore islands of Penghu, Matsu, and says Heather Lin, chief operating Kinmen were full. All of them. People officer of the Taipei-based Interna- patiently waited in long lines to clear tional Research Based Pharmaceutical the security check. Manufacturers Association (IRPMA). • Taiwan Keeps Mercurial Coronavirus at Only the ubiquitous face masks “It's easier to close borders.” Bay p36 worn by passengers and airport staff By now, Taiwan’s adroit response signaled that Taiwan remained at war to the pandemic is well known. The with an invisible adversary, one that health authorities got out in front of worldwide had sickened 15.5 mil- the virus when the disease was still a • Battling COVID-19 with Technology p39 lion people and resulted in 632,000 blip on the radar of other countries. deaths as of late July. Masks and Technology has improved epidemic temperature checks will be neces- control but has not been the decisive sary precautions for the foreseeable factor in Taiwan’s success. future, but the virus in Taiwan has Even more important was the • Taiwan Faces New Challenges from Liver receded to the point that domestic experience gained when Taiwan had Disease p42 travel is considered safe again. previously faced a mysterious respi- Taiwan last recorded a case of local ratory illness from China before. COVID-19 transmission on April 12. During the 2002-03 SARS outbreak Taiwan stands out as one of the that originated in Guangdong Prov- few countries in the world able to ince, 346 Taiwanese were infected corral the coronavirus. By preventing and 37 succumbed to the disease. community transmission from taking SARS infected about 8,000 people hold, Taiwan has avoided a public globally before burning out in 2004. health and economic disaster. Most “SARS was traumatic for of its 455 cases have been imported, Taiwan,” Lin says. “We spent the and there have been only seven next 17 years preparing for another deaths. The government has used SARS, and when it came, it was contact tracing to identify and iso- time to show our capabilities.” After late local cases, stymieing the type SARS, Taiwan had the administrative

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structure in place to deal with a public- even managed positive growth in the quarantine requirement remains in place health crisis. The Central Epidemic second quarter, when much of the world for any Taiwanese citizens or foreign Command Center (CECC) was activated was in lockdown. The Chung-Hua Insti- residents returning to the country from to deal with the coronavirus as early as tution for Economic Research (CIER) overseas. As long as that rule exists, January 20, and all air travel to and from reckons that Taiwan’s economy grew outbound travel from Taiwan will be China was suspended six days later. 0.64% in the April-June period. limited. Not only has Taiwan’s disease-con- By avoiding a lockdown, Taiwan The government implemented the trol borne fruit for public health, it also has been spared widespread job cuts mandatory quarantine requirement in may help the economy stave off recession. that would sap domestic demand. The March as imported infections surged, “Taiwan will likely be the only Asian unemployment rate rose from 3.64% in mostly among people returning from tiger to pull off positive GDP growth January to 4.07% in May, according to Europe and the U.S. Strict adherence to this year,” says Darson Chiu, vice presi- data compiled by the Directorate Gen- it has helped Taiwan prevent community dent of the Taiwan Institute of Economic eral of Budget Accounting and Statistics transmission. Research (TIER), which is projecting (DGBAS), before easing to 3.96% in But travel restrictions are not a per- growth in the 1-1.5% range. He sees June. manent solution. With the virus still the main growth drivers as fixed-asset raging on every continent but Antarctica, investments from the reshoring of supply Reopening and risk management the challenge for Taiwan will be fig- chains, rising Chinese imports of Tai- uring out how to ease those restrictions wan’s ICT components, and “excellent While “reopening” for many coun- safely. “Even though there are still spo- pandemic control supporting domestic tries refers to the economy, schools, and radic cases of imported COVID-19, we demand.” borders, Taiwan has been able to keep will continue to employ strict border con- In contrast, South Korea’s economy the former two almost fully operational trols,” Health Minister Chen Shih-chung is forecast to contract by 1.2%, Hong throughout the pandemic. It is only the said in a recent weekly press conference. Kong by 2%, and Singapore 5.8%. Hong borders that have been closed. Dr. Chan Chang-chuan, dean of Kong’s GDP growth has been in negative A consensus on when and how National Taiwan University’s School territory since November 2019, while to open to foreign visitors has yet to of Public Health, stresses the need to South Korea and Singapore entered a emerge, although some limited business carefully manage the flow of migrant technical recession in the second quarter. travel has been permitted since late June. workers, who play essential roles as con- Economists say that Taiwan likely At the same time, a mandatory 14-day struction workers and caregivers in

CDC officers explain quarantine rules to a Japanese arrival at Taoyuan International Airport. PHOTO: CNA

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8 IF.indd 37 2020/8/5 下午3:20 INDUSTRY F CUS Taiwan. Many of the male workers come been offering visitors from the EU and you do more testing, you will have more from Vietnam, Thailand, and Myanmar, another dozen countries the option of confidence,” Chan says. where the pandemic appears under con- either doing a 14-day quarantine or being The CECC counters that with such trol. Female caregivers, however, are tested for COVID-19 on arrival. The cost a low infection rate in Taiwan, mass often from Indonesia, where conditions of the test is US$65 if paid in advance testing would not be an optimal use of are worsening. or US$80 on arrival, and test results resources. The government estimates “We have to learn from Singapore, are provided within 24 hours. While that it would cost NT$54 billion (about where migrant workers were the weak awaiting the results, visitors are not US$1.8 billion) to test 18 million people. link in the epidemic prevention chain,” required to quarantine, but are advised Chan says, referring to the crowded dor- to head directly to their accommodations Exporting expertise mitories in the city-state that house about and practice social distancing. 1 million workers from South Asia and The Iceland system gives anyone who Over the past six months, Taiwan has China. The cramped, unhygienic condi- tests positive the option of further testing shown the world its epidemic-control tions have fomented rapid spread of the to determine if the infection is active. If prowess, well encapsulated in the gov- virus, often outstripping the Singaporean it is, the person must self-isolate and stay ernment's “Taiwan can help” tagline. Yet government’s ability to trace the source in touch with a dedicated contact tracing China's opposition to Taiwan’s partici- of infection. Migrant workers account team. The Iceland government provides pation in the World Health Organization for most of Singapore’s 48,000 cases. rooms in specialized isolation centers (WHO), even as an observer, remains a In June, Taiwan’s Ministry of Labor free of charge to those without an appro- huge obstacle. (MOL) said that employers of migrant priate location to self-isolate. In contrast, working outside of the workers with contracts due to expire Through July 2, just 28 of the 15,197 constraints of such organizations has between June 17 and September 17 could tests administered to visitors were pos- huge potential. The U.S. and Taiwan apply for a three-month extension to itive for COVID-19, according to the already collaborate on a number of reduce overseas travel during the pan- Iceland government’s data. Twenty- public health and biomedical research demic. The MOL previously offered a two had developed antibodies, while the initiatives. Taiwan may find a growing three-month extension to workers whose remaining six were active infections and number of other eager partners as major contracts expired between March 17 were quarantined. The number of visi- democracies like the United Kingdom, and June 17. More than 82,000 migrant tors permitted to enter the country daily Australia, Japan, and India encounter dif- workers had their contracts extended or depends on testing capacity. “It is scien- ficulty getting along with an increasingly were reassigned to other jobs as of the tific and logical,” Chan says. pugnacious PRC. end of June, according to data compiled He urges the Taiwan government to In June, the U.S., Japan, Australia, and by the MOL. conduct more testing on the local popu- Taiwan co-organized the virtual Global To reopen the borders safely, Chan lation to better understand the nature of Cooperation and Training Framework says Taiwan should test visitors on the coronavirus. Taiwan has so far done (vGCTF) workshop in Taipei to share arrival, using Iceland’s approach. Since about 80,000 COVID-19 tests, according best epidemic-control practices. Seventy June 15, the European island nation has to the Centers for Disease Control. “If experts from 16 countries participated. The pandemic may even help spur Taiwan’s long-anticipated software rev- olution. To that end, Taiwan's AI Labs has developed a social-distancing app that the UK is considering adopting. The Bluetooth app issues an alert on users’ phones when they get too close to other people and provides information about crowded locations so they can be avoided. The app complies with the data- privacy laws of both Taiwan and Europe, according to the CECC. The Taiwan government says it is willing to provide the source code to other countries. “If the UK adopts this app successfully, other European countries can easily use the same app to prevent the spread of infectious diseases,” says Patrick Wu, an analyst at the semi-governmental Market Intelligence & Consulting Insti- Travelers getting ready to board a train at Taipei Main Station. tute (MIC). PHOTO: CNA The global medical supply chain

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is another area where Taiwan has the they may look at Taiwan, with its low and training of specialists, administra- opportunity to tap rising demand, espe- incidence of the virus, and think it is not tors, and technicians,” he says. “Taiwan cially as the risks of concentrating a priority.” already has a solid base” from which it production in China have become evi- Lin urges the government to allo- could expand capacity as needed to meet dent. Taiwan’s capabilities in testing cate the necessary budget to ensure that demands,” he notes. methods, viral genetic sequencing, and Taiwan can inoculate its citizens once a Reinfeld, previously a long-term resi- drug development may help strengthen coronavirus vaccine becomes available. dent of Taiwan, says the country should its position in the global medical supply “We won't be able to get the best vaccine borrow a page out of its own book, refer- chain, Wu says. quickly if we offer a low reimbursement ring to the transformation in the 1970s While Taiwan labs could possibly price,” she says. and 1980s from a “low value-added develop a coronavirus vaccine, data to William Reinfeld, an economist and semi-industrial economy to a show- support clinical trials is limited, says adjunct professor at New York University case high-tech and developed economy.” IRPMA’s Lin. Ironically, in this instance Shanghai, sees the pandemic as a chance Among his recommendations: prepare a Taiwan is a victim of its own success, for Taiwan to transform its economy, master plan, empower a national cham- with just 455 cases. China, with more achieve leadership distinction, and sup- pion to lead the initiative, carry out the than 83,000, or the U.S., which has 4 port long-term diplomatic goals. project as a joint public-private effort, million cases, have much more data to “Eventually, all countries will be and build global partnerships. use as they race to develop a vaccine. turning their attention to preparing The difficulties and risks in pursuing Ensuring access to a vaccine devel- themselves for future pandemics and allo- this objective are “small in comparison oped elsewhere could be a challenge for cating billions of dollars for everything to the far-reaching rewards for Taiwan’s Taiwan, Lin says. “If the WHO or other from face masks, ventilators, vaccines, economy, global recognition, and quality NGOs end up distributing the vaccine, drugs, testing, and tracking to research of life,” he says.

BATTLING COVID-19 WITH TECHNOLOGY

Taiwan’s technical strengths will also benefit its economic recovery.

BY DANIEL S. JAMES II

rior to the COVID-19 pandemic, technologies will be Edge Computing. Edge Computing systems were gener- Taiwan was already investing The edge is a computing architecture that ally not expected to become mainstream heavily in advanced manufac- provides real-time processing close to the until global 5G cellular networks were turingP and networking technologies. It’s source of the data. It is largely driven by implemented. However, the urgency of recent success in containing the spread the emergence of the Industrial Internet fighting the pandemic in both mature of COVID-19 at home puts it in good of Things (IIoT), which often involves and emerging markets is pulling for- standing to become a leader in a variety remote monitoring of industrial and ward the demand for remote monitoring of next-generation platforms that can commercial applications and typically applications by two to three years. This be employed to fight the virus globally. requires low-latency and high-bandwidth will require that many countries invest While both local Taiwanese and multi- networks. These systems can be deployed in edge technologies that can be weaved national firms are busy developing new in both remote regions and in distributed into their existing 3G and 4G networks, COVID-19-focused solutions, others are networks where cloud or hyperscale data even in rural or remote areas. quickly repurposing existing systems to centers may be too slow or unable to Taiwan has some major technological help countries manage the pandemic. support the local bandwidth, especially advantages. It is renowned for its tech- A major driver in the deployment where high-resolution video processing is nical expertise in hardware systems such of COVID-19 detection and mitigation required. as edge networking devices, advanced

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8 IF.indd 39 2020/8/4 下午10:44 INDUSTRY F CUS semiconductors, and robotics. Recently, ognition, and social distancing shop floor. the government has been making invest- management. Early examples • Material Handling and Process ments in artificial intelligence, smart include retail solutions devel- Automation: Robotic systems for manufacturing (commonly referred to as oped by the Industrial Technology warehouse management and factory Industry 4.0) and 5G. These next-gen- Research Institute (ITRI) for Family floor automation remove human eration technologies will provide the Mart. They monitor consumer interaction from inventory and backbone for innovations in COVID-19 pathways, automate in-store pur- material management. detection and management while also chases, and eliminate the need for • IIoT Devices: Taiwan specializes in delivering new revenue streams for Tai- in-store clerks with automated smart sensors and industrial gate- wanese companies seeking new markets point of sale checkouts. ways which provide factories, and applications. data centers, and smart cities with Industry 4.0 & IIoT remote monitoring in applications Artificial Intelligence & where human-to-human contact is Edge-Computing The highest-impact COVID-19 mit- typically required. igation technologies involve remote Taiwan is making some big strides management of systems in high-traffic 5G & Edge-Networks in AI development, both in terms of the areas. These devices need to work in out- software applications and the hardware door or harsh environments and their Taiwan is currently launching 5G cel- needed for AI computing. It has shown use can range from retail and commercial lular networks but will have a more strength in two areas in particular: office to manufacturing and smart cities. significant role in developing network • Advanced GPUs: These will sup- Examples of Taiwan’s progress in this devices that can be used in Edge Com- port new applications requiring area include: puting. It is home to a wide range of high-processing GPU speeds. • Augmented Reality: Factory vendors who specialize in network NVIDIA has developed a new Edge- workers can use enhanced vision switches and servers that can be used to AI GPU card (EGX A100), which systems in the form of smart glasses build out high-performance solutions on uses TSMC’s advanced processor. that convey, via RFID monitoring, the edge such as: Data can be real-time processed at real-time floor-level informa- • Remote Healthcare Solutions: the edge and then sent back to the tion such as work instructions, High-speed audio and video devices cloud for deep learning. worker-proximity alerts, and WIP can allow doctors to diagnose • Computer Vision: Technolo- information. Effectively managed, and work with patients from their gies include mask identification, this can eliminate the need for home, minimizing high-risk traffic temperature monitoring, facial rec- human-to-human contact on the in hospitals and clinics. In addi-

Taiwan currently has an advantage in producing technology to combat COVID-19 – such as mask-detection and temperature screening platforms – that can be used around the world. PHOTO: MARTTI CHEN

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tion, advanced networks can allow surgeons to operate via robotics to minimize infection risk. • Work-from-Home (WFH) Technol- ogies: Service providers can upgrade their last-mile networks (the final leg of a telecommunications network that delivers services to end- users) with high-bandwidth edge- network devices that are often overloaded by live video-streaming. Such a setup would allow WFH to become a seamless part of business operations. This is especially critical in emerging markets, where high infection rates and poor network performance have caused significant economic disruption. • Mobile Technologies: Taiwan is Remote healthcare solutions may become more widespread due to COVID-19. home to some major 5G mobile phone manufacturers such as Fox- • Enforced IP protection laws, which ware development firms to partner with conn and Asus. These firms can be provide for safe partnerships in both multinationals and regional channel employed to manage mobile IoT contract manufacturing. partners are quickly expanding. OEM devices in automotive and smart • Repatriation of top-level engi- and branded companies alike are now city applications. Mobile tech- neering talent seeking safety during investing in commercial resources to nologies will allow for on-the-go the pandemic. help globally promote their technologies, transactions, reducing the need for • Repatriation of manufacturing cap- which is often the biggest challenge for cash, while also providing advanced ital from local companies seeking to engineering-focused manufacturers. health monitoring for early virus avoid trade barriers. detection. • Emerging start-up ecosystem for Conclusions new tech companies with govern- Taiwan’s Market Advantages ment sponsorship. Bolstered by government support for • Safe, local environment for visiting the development of AI and smart manu- Given Taiwan’s effective virus suppliers testing and implementing facturing, Taiwan is positioned to quickly management, including strict quar- new systems. emerge as a global leader in next-genera- antine procedures for all citizens and • Trustworthy networking systems tion technologies that can help the world foreign residents returning from over- approved for international use in make its way through the COVID-19 seas, no new locally generated cases of critical applications. pandemic. With the surplus of talent cur- COVID-19 have been reported on the rently repatriated to the island, many island since April. Taiwan’s local busi- Challenges to Overcome multinationals are looking to Taiwan for nesses have thus been able to remain fully its advanced R&D capabilities, as well as operational throughout the pandemic. Over 70% of Taiwan’s exports are to use the local market as a safe testing As a result, many multinationals seeking to Asia-Pacific countries, with approx- hub to pilot-launch new systems. new supply chain options can find a imately 40% exclusively to China, and In addition, local tech companies have safe place to purchase high-tech prod- electronics account for more than of half been reinvesting a significant amount ucts in Taiwan and leverage the following of these. As countries begin reconsidering of production back to Taiwan, creating advantages: the makeup of their global supply chains, an industrial base to support contract • Vertical integration of engineering, Taiwan is faced with both opportuni- manufacturing, rapid prototyping, and test labs, and manufacturing for ties and risks. It will therefore need to development. These companies are also rapid development. identify the most attractive regions and using the current environment to pro- • Local component supply base, technologies as tech companies pivot into mote their “Made in Taiwan” brand, allowing for low lead times and new markets. viewed internationally as both high-value minimal risk. Current headwinds to promoting and trustworthy. • Highly skilled product and manu- international investment in Taiwan facturing engineering resources. include travel restrictions, higher man- — Daniel S. James II is president of • Government support for the ufacturing costs, and geopolitical ArcTiv Technologies and co-founder of research and development of risks. However, the opportunities for Olympia International Consulting advanced manufacturing and AI. Taiwanese manufacturers and AI or soft-

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TAIWAN FACES NEW CHALLENGES FROM LIVER DISEASE

The battle against hepatitis has largely been won, but rising fatty liver incidence has worrisome implications.

BY MATTHEW FULCO

r. Lee and his wife have “Non-alcoholic fatty liver disease polyunsaturated fat. A study published always been in fairly good (NAFLD) has become the most over- in the journal PLOS One in 2015 found health. Now well into their whelming liver disease in Asia,” wrote that mice on a soybean oil diet developed 60s,M they still run a small tailor shop near Taiwanese doctors Hsu Ching-sheng and fatty liver and ballooned hepatocytes Dongmen Market in Taipei. Both are Kao Jia-Horng in the Expert Review of as well as obesity, diabetes, and insulin slender and have never been overweight. Gastroenterology & Hepatology in 2017. resistance. The amount of soybean oil To the surprise of Mrs. Lee, a routine Fatty liver is often found in obese the mice ingested was similar to what a health exam several years showed that people and sometimes caused by heavy person consumes. she had fatty liver disease, a condition alcohol consumption. But Mr. Lee’s Taiwan’s Health Prevention Associ- in which excess fat accumulates in the wife is neither obese nor a drinker. She ation (HPA) said in June that fatty liver liver cells. Originally considered a benign thinks unhealthy food may have caused is often linked to liver cancer cases in condition, fatty liver is now increasingly excess fat to build up in her liver. “Some Taiwan. Liver cancer is the fourth most seen as a possible precursor to serious Taiwanese food is very oily, especially res- common cancer here, with about 11,000 hepatic illnesses, including steatohepa- taurant food. It’s not healthy,” she says. cases a year. The HPA emphasized that titis, liver fibrosis, cirrhosis, and even Restaurants in Taiwan commonly obese people are three times as likely to liver cancer. cook with soybean oil, which is high in have metabolic syndrome, a clustering of risk factors that raises the risk of heart disease and other health problems. Fatty liver is associated with metabolic syndrome. Dr. Ho Mei-shang, an adjunct research fellow at Academia Sinica and specialist in infectious diseases and epidemic control, says that some people in Taiwan appear to be skinny, but have fat accumulated where it can do the most damage. “It’s hidden – it’s visceral obesity,” she says of the fat stored in the abdominal cavity padding the space between the internal organs. A 2016 study published in Nutrition & Diabetes found that Asian women Many Taiwanese restaurants cook food with soybean oil, which contains high levels of carried more abdominal and visceral fat polyunsaturated fat and has been associated with a high incidence of fatty liver disease. as compared to Caucasian women with

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8 IF.indd 42 2020/8/4 下午10:44 A report on healthcare and innovation

similar overall adiposity. “This may con- newborns,” Dr. Ho notes. That vaccina- was one of the main drivers behind their tribute to their elevated metabolic risk tion program was initiated in 1986, six efforts to persuade the government to for obesity-related diseases,” the authors years before the World Health Organi- vaccinate all newborns. wrote. zation recommended that all countries Despite the significant progress The challenge to combating fatty do so. made fighting the disease, chronic hep- liver is that it is largely asymptom- Chronic hepatitis infection is a top atitis B remains a public health problem atic in mild cases. Indeed, many people risk factor for liver cancer. After the start in Taiwan because some carriers were with mild cases may never develop other of universal hepatitis B vaccination, liver infected before universal vaccination. health complications. In addition. there cancer incidence fell steadily in Taiwan According to National Taiwan Universi- are no drugs currently approved to treat Data from the Centers for Disease ty’s Gastroenterology Division, Taiwan it. Health specialists advocate lifestyle Control (CDC) shows that prior to mass has roughly 2 million hepatitis B carriers, changes to reduce the incidence of fatty vaccination, 90% of Taiwan’s population 20% of whom require medication. liver, such as a healthier diet and regular had been infected with hepatitis B before Meanwhile, gastroenterologists exercise. age 40, with 18-20% being carriers. Hep- urge Taiwan to do more to stymie fatty To be sure, it is not easy to per- atitis B is spread when the bodily fluids liver disease lest it become a public suade people to make lifestyle changes, of someone infected enters someone who health crisis. “If we fail to cope with especially when a disease presents no is not infected. It can be sexually trans- this growing health problem, NAFLD symptoms. Fortunately, given Taiwan’s mitted or spread by an infected mother to [non-alcoholic fatty liver disease] may expertise in liver medicine, there is reason her child during birth. gradually replace viral hepatitis as for hope. In the 1970s, Taiwanese researchers the major etiology of liver disease in After all, “Taiwan was the first discovered that mothers who were hep- Taiwan,” wrote doctors Hsu and Kao in country in the world to implement uni- atitis B carriers had a 70% chance of the October 2012 edition of the Journal versal vaccination for hepatitis B in passing the disease on to their child. That of the Formosan Medical Association.

Congratulations, TOPICS

TOPICS magazine remains an indispensable “publication for those who wish to navigate and engage Taiwan. Its in-depth analysis of business and cultural developments equip business people as well as tourists with the benefits and challenges of working, visiting, and even living

on the island. Its crowning annual production is

the White Paper produced each spring; it is the authoritative assessment of the business envi- “ ronment and a must-read for all doing business or aspiring to do business with the country

— Rupert Hammond-Chambers, President, US-Taiwan Business Council

TAIWAN BUSINESS TOPICS • AUGUST 2020 43

8 IF.indd 43 2020/8/4 下午10:44 TAIWAN BUSINESS

BIOTECH EVENT SHOWCASES TAIWAN’S “NEXT TRILLION-DOLLAR INDUSTRY”

Combining on-site and online participants, exhibitors, and speakers, BIO Asia-Taiwan 2020 introduced hundreds of new biotech and biomedical developments, including many related to COVID-19.

BY LOUISE WATT

n a visual demonstration of how people would be able to attend from logged in online, most presentations well Taiwan has controlled COVID- outside Taiwan. were only 15 minutes long and ran 19, the island hosted Asia’s first “Then we thought about how the back-to-back, without the coffee breaks Imajor industry gathering since the onset industry still needs to continue func- typical of conferences. of the pandemic, a biotech conference tioning – we need to find partners,” Lee The event attracted 1,400 registered and exhibition appropriately themed told Taiwan Business TOPICS. “We participants – almost as many as last “Finding Cures in the Crisis.” have to talk about licensing, collabora- year’s 1,500 – although the registration With many large events around tions, and also fundraising.” cost this time around was significantly the world cancelled to limit the virus’ So, the organizers came up with a lower. This year 30% of partici- spread, the organizing committee of hybrid “Online + Live” model, com- pants were from abroad, and around BIO Asia-Taiwan was also initially bining speakers and exhibitors on-site 400 signed up to participate online, skeptical that they could pull it off. and online. As a result, the world’s first including 107 from the U.S. “This is But if there was ever a time the biotech large-scale on-site biotech conference much better than we expected,” Lee industry needed to meet, it was now. since the onset of COVID-19 was able says. As the pandemic rages across the to go ahead as scheduled from July 22 At the four-day exhibition that globe, the biomedical industry is at the to 26. complemented the conference, 500 com- forefront of driving developments to More than 400 speakers took part in panies had displays on-site and a further combat it. But restricted travel means the three-day conference portion of the 200 presented virtually, through online companies are struggling to make the event, either in person at the TaiNEX 2 booths that resembled chat rooms. kinds of new connections that lead to Exhibition Center in Nangang, Taipei, Exhibitors reported a big decrease in international partnerships and deal- live online, or via pre-recorded videos. on-site visitors compared to last year. making. They spoke on topics ranging from While online booths gave smaller com- Johnsee Lee, chairman of the BIO combatting pandemics, precision med- panies a chance to compete for attention Asia-Taiwan 2020 organizing com- icine, advanced therapies, artificial alongside big names, receiving virtual mittee, said they had considered intelligence for healthcare, investment, visitors was sometimes difficult because postponing the event because border and regional cooperation. of time zone differences. closures and restricted travel meant few To keep the interest of viewers who The organizers tried to replicate the

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networking that is a key part of any The biomedical field’s revenue grew drastically, adding that it bolsters conference with online lounges where by 8.7% in 2019, the highest in recent industry resources and increases Tai- you could hand over virtual business years, said Tsai, who has experience in wan’s visibility. cards. Rather than having to vie for a the sector as a former chairperson of free slot in small meeting rooms on the TaiMed Biologics, a drug development Potential breakthroughs conference sidelines, people scheduled company in Neihu. Noting that total more than 2,000 one-on-one meetings investment last year surpassed NT$55.1 At BIO Asia-Taiwan, local compa- online. billion (US$1.9 billion), the President nies displayed their potential solutions Of the nearly 5,000 logins during said she is “confident that the biomed for COVID-19, including vaccines, the event, 30% were from outside industry will be Taiwan’s next trillion- tests, and drugs. Taiwan – mostly from the U.S., Japan, dollar industry.” Golden Biotechnology Corp., a and China. Lee, who besides heading the drug and health supplement manufac- This year’s conference of the Wash- event’s organizing committee is turer based in Tamsui, was promoting ington, D.C.-based Biotechnology chairman of TBIO and founder and Antroquinonol, the only drug from Innovation Organization (BIO), which CEO of two biotech companies, said Taiwan to have received U.S. Food and was forced online in July, provided that the pandemic had given a boost Drug Administration (FDA) approval some lessons for the Taipei event. These to Taiwan’s biotech and biomedical for carrying out Phase II clinical trials included encouraging speakers to pre- industries “because it has changed peo- on COVID-19 patients in the U.S. It is record their presentations, preparing ple’s minds” about their importance. being tested as a potential treatment good lighting, and using appropriate Companies that make components option for mild-to-moderate pneu- backgrounds. BIO, which co-orga- to help with drug manufacturing, monia. nized the Taipei event with the Taiwan or products for antibody and other “It’s totally different [from other Bio Industry Organization (TBIO), testing, “are all continuously selling drugs under development for COVID- hadn’t thought to forewarn speakers at products,” he said. 19] because it’s made from a medicinal the July conference of the risk of birds “These are products that could mushroom grown in Taiwan,” said Leo chirping throughout their presentations, have signiﬁcant impact on a company’s He, manager of Golden Biotechnology’s as happened with one speaker who business and also their product port- international business department. recorded his remarks outdoors. folio because this is a global market,” The drug is derived from Antrodia In a speech at the opening ceremony, Lee said. “Think about how big the camphorata, traditionally used to treat President Tsai Ing-wen said it was a tes- demand is just for preparing for the liver diseases, and took 10 years to tament to the country’s handling of next pandemic.” He said that this is develop. It was already being trialed in COVID-19 that BIO Asia-Taiwan was the reason why share prices for many the U.S. for non-small cell lung cancer being held at all. She said Taiwan is biotech companies are increasing so when COVID-19 came along. willing to share its experience of dealing with the coronavirus and hopes that Taiwanese and foreign companies will ﬁnd ways to “create new opportunities in the post COVID-19 era.” The biomedical sector is already a part of Tsai’s 5+2 plan to promote key industries to drive growth and sustainable development. Her government has built biotech and pharmaceutical clus- ters throughout Taiwan and relaxed investment and recruitment restrictions. This initiative has accelerated innovation, she told the audience of industry leaders and representatives of local government, overseas trade offices, academia, and medical associations. “We are now planning the next round of innovative legislation to incentivize R&D on new pharmaceuticals,” she said. Over the past two years, Tsai added, Taiwan has carried out more than 300 Leo He of Golden Biotechnology Corp. promotes a drug made from a mushroom grown clinical trials, 80% of which were with in the central mountains of Taiwan. international companies. PHOTO: LOUISE WATT

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“This medicine is multi-functioning; anti-cancer is only part of it,” He said. “If everything goes well, by next year hopefully we may be approved to be the first COVID-19 treatment from Taiwan.” Among the companies promoting fast finger-prick and other tests to identify COVID-19 was Cold Spring Biotech Corp., based in New Taipei City’s Xizhi District. One product on display was a nucleic acid diagnostic kit that looks like a camera lens. A nasal swab from a patient is inserted into one of its compartments, and a test result takes 45 minutes. The procedure uses a polymerase chain reaction (PCR), which amplifies a DNA sample hundreds of thousands of times so there is enough of it to ana- lyze. The test kit is portable, weighing less than 600 grams. Yang Chung-hsiang of Cold Spring Biotech Corp., left, with colleagues Haley Chao, center, and Eric Chen, right, and their COVID-19 testing products. “Conventional PCR machines are PHOTO: LOUISE WATT too large to be carried around,” said Yang Chung-hsiang, Cold Spring’s Cheng, its president and general “Our commitment to the Taiwanese R&D project manager. “So, this is manager, told the conference. Adim- government is that by the end of this designed for the countryside or some mune is using recombinant protein year we are going to supply the gov- poor countries where they may lack a technology, which uses only a small part ernment with one million doses of the complete lab where professionals can of the virus’ DNA sequence to create a vaccine,” Chang said, adding that the conduct these tests. Because of the scale protein that will trigger a response from company is aiming to supply up to 20 of the outbreak you can’t have labs the body’s immune system. million doses annually. “After that, everywhere. You need to go where the The method is faster than the tradi- if we can expand our scale rapidly, outbreak starts and try to figure out tional way of making vaccines, as “we we’ll be able to provide our vaccines who is affected.” don’t have to culture the whole virus,” to neighboring countries in the Asia- The test kit has been approved by said Pinky Li, manager of the business Paciﬁc region,” he said. the Taiwan FDA but is not yet on the development division of Enimmune Chang said that to drive the future market. Corp., an Adimmune subsidiary. “As development of Taiwan’s biotech At least three Taiwanese compa- long as we know the virus’ sequence, industry, the government should look nies, plus Academica Sinica and the we can choose the part which can at integrating AI with precision medi- National Health Research Institutes induce the most appropriate immune cine, precision machinery, and medical under the Ministry of Health and Wel- response for vaccine development. So, collaboration. While many compa- fare, are developing vaccines to counter when a new emergency disease comes, nies around the world are working on COVID-19. Developers have com- we can react very quickly.” using AI in medicine, “that is just a plained that Taiwan has lagged behind Liu, Adimmune’s president, said the small part, but not the holistic part of other countries because of onerous reg- company is awaiting TFDA approval to the future of biotech business,” said ulatory requirements, according to local start the first phase of clinical trials in Chang. “You have to link all four things media. Following the criticism, Health humans. It plans to produce 10-40 mil- together.” Minister Chen Shih-chung announced lion doses, he noted. Looking forward to next year’s BIO in July that the government will allo- Medigen Vaccine Biologics Corp., Asia-Taiwan conference, Johnsee Lee cate NT$18.7 billion (US$637 million) based in Neihu, is working with the said the advantage of the online forum for the development or procurement of U.S. National Institutes of Health to was that it allows for more speakers a COVID-19 vaccine and to streamline develop a vaccine using recombinant and participants from abroad. “In the the approval process for high-potential spike protein technology. future, online participation may actu- candidates. Stanley Chang, chairman and CEO ally become more important than on- Among the companies in the vaccine of parent company Medigen Biotech- site,” he predicted. By broadening the race is Adimmune Corp., which pro- nology Corp., said recruitment of types of participation and speakers at vides up to 40% of Taiwan’s domestic patients for trials may start by early an event, the organizers can give them- vaccine needs each year, Liu Chung- September. selves more ﬂexibility, he said.

46 TAIWAN BUSINESS TOPICS • AUGUST 2020

8 Bio.indd 46 2020/8/4 下午10:46 BOOKS

BREAKING THE VICIOUS CYCLE FOR TAIWAN’S ECONOMIC MIGRANTS

Canadian journalist and author J.W. Henley’s third novel casts in literary form the struggles faced by migrant workers in Taiwan.

BY JEREMY OLIVIER

ne of the most difficult exer- The young protagonist believes his cises a novelist can undertake fortunes may change when he learns is writing from another cul- of the opportunity to work on fishing turalO perspective. Harder still is writing boats in what he initially mistakenly from the perspective of someone from believes is Thailand. Soon after, he a background so far removed your own learns from smooth-talking local labor that it can only be described as “worlds broker Benjie that it is in fact Taiwan apart.” Attempts to do so sometimes that he will be going to, a place that work out, but at other times can come he and his relations lack the faintest off as strained and tone-deaf. knowledge about. Taipei-based, Canadian-born jour- What is in store for him is likely nalist and author J.W. Henley pulls off beyond the imagination of many this feat masterfully in his new novel readers unfamiliar with Taiwan’s guest Migrante, which in rich prose and worker system. The island’s fisheries heartbreaking detail tells the story of a have earned a reputation for being par- Filipino migrant worker’s journey from ticularly brutal and lawless, and this is the cemetery slums of Manila to the where Rizal finds himself as he arrives deep-sea fisheries of Taiwan’s east coast in Nanfang’ao, a fishing harbor on Tai- and back. wan’s Pacific east coast. Straddled with Migrante follows the travails of the debt he owes on predatory loans Rizal, an impoverished young Fili- from both Benjie and Taiwanese labor pino who resides with his mother inside broker Mr. Chen – and now subject to a decaying mausoleum in a Metro- the whims of sadistic boat captain Li – politan Manila graveyard. He whiles he is left without options. The abuse and exploitation suf- Migrante away most days fetching contami- by J.W. Henley nated water for his mother to sell to the fered by many of the nearly 800,000 Camphor Press, 2020. 310 pages. surrounding community of cemetery migrant workers currently living and dwellers, killing time with his ne’er- laboring in Taiwan is well-documented, do-well friend Kidlat, and avoiding and Henley’s journalistic work over encounters with Datu, the local grave- the past several years has been instru- digger who Rizal perhaps sees as a mental in bringing those injustices to symbol of his own mortality. light in English-language media. He

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Migrant workers in Taiwan's fisheries often endure severe abuse and exploitation, a reality Migrante conveys in stark detail. PHOTO: MARTTI CHEN

has also reported extensively on the trapped in is a recurring theme in boat form the kind of unshakable bond phenomenon of the Philippines’ most Migrante. As Rizal returns to his native that is only possible in terrible circum- destitute making their makeshift homes Manila near the book’s conclusion, he stances, and one can’t help but smile among the dead in its cemeteries, and is once again placed at the bottom of as they find temporary joy and relief has chronicled the stories of the vic- an informal caste system that prohibits in an evening of escape from the ship. tims of Duterte’s brutal drug war. His him from finding legitimate work. And the awkward coyness Rizal dis- writing in Migrante demonstrates a What is he to do? Does he starve on plays in the presence of new friend and profound understanding of these dis- the streets or languish in the same cem- love interest Jasmine is a lighthearted parate worlds, which makes the book a etery he was born in? Or does he return reminder of his youth and inexperience. realistic, compelling read. to the hellish environment in which he No writing effort as ambitious Henley is likewise acutely aware can earn a paltry sum for thankless, as Migrante is without its faults. At of the privileged position he is writing backbreaking labor and eventually pay times the book’s narration and charac- from, noting in the book’s foreword off his debt? The cycle continues. ters engage in long-winded expositions that he came to Taiwan not out of eco- Migrante can be a tough read. The that, while helping the story along, can nomic necessity, but because it seemed dull, repetitive nature of Rizal and his feel less than authentic. And although like an enjoyable thing to do – the polar shipmates’ work on the fishing boat; Henley has a true writer’s knack for opposite of Rizal’s situation. As an avid the lack of nutrition and shelter they similes and metaphors that avoid believer in human rights and social jus- experience as their employer virtually sounding like clichés, the often flowery tice, however, he dedicates Migrante starves them and ensures they never descriptions of the mundane tend to to those he encountered during his leave their water-borne prison; and the distract the reader from the simple, reporting work who faced sometimes realization that few people, if any, are powerful message being conveyed. unfathomable levels of oppression and willing or even able to help them at all Overall, though, these minor criti- discrimination. In that spirit, Henley in the strange new land – these descrip- cisms pale in comparison to the depth has chosen to donate his share of the tions can leave the reader with a deep and compassion displayed in Migrante. proceeds from sales of the book to sense of discomfort. “We are the name- The central message of the novel is of Serve the People’s Association and the less dead now” is the book’s consistent urgent importance as well – Rizal’s Yilan Migrant Fisherman’s Union, two refrain, repeated at points of stark real- story is currently playing out in real life NGOs dedicated to furthering the cause ization of the main characters’ fate. among countless migrant workers. As of migrant worker rights in Taiwan. Yet the dreariness and existential their stories are told more frequently The vicious cycle of poverty and dread is lifted at times with moments by Henley and others, hopefully those despair that Rizal and his fellow of genuine humor and kindness. The in a position to change things will take migrant workers find themselves men working together on Captain Li’s action, finally breaking the cycle.

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8 Book.indd 48 2020/8/4 下午10:49 SEEING TAIWAN

Bringing Art to a Region of Beauty

TECLAND ART FESTIVAL

here is something about eastern yet another reason to spend time in Valley. Whereas previous editions of Taiwan that brings out the best this unspoiled corner of the world, the TECLandArt Festival concentrated T in artists. It may be the sheer The festival’s English-Chinese-Japanese on the ocean and the coastal area, the sense of space and striking scenic beauty website is at www.teclandart.tw. 2020 event is extending its focus to that inspires them. The mountainous To devise this year’s theme, the orga- this valley, which is separated from the counties of Hualien and Taitung are nizers drew on millions of years of Pacific Ocean by a mountain range that thinly populated by comparison with geological history: the ongoing colli- reaches 1,680 meters (5,512 feet) above the island’s western lowlands, and life in sion between two tectonic plates – the sea level. the East moves at a much slower pace. Eurasian Plate on the western side and Noting that the violent collision Very likely, the appeal is also the Philippine Sea Plate to the east – of the tectonic plates “reveals infi- connected to the region’s special multi- that caused Taiwan and its awesomely nite creativity and possibilities,” the cultural makeup. In the East, every rugged mountains to emerge. organizers say “it is time to use this ethnic group is a minority. Many citi- From time to time, Taiwan’s inhab- metaphor to integrate the infinite zens are of Hoklo (Fujianese) or Hakka itants receive a reminder that, deep humanistic and artistic energy of the descent, and the distinctive Austrone- beneath their feet, immense natural east coast and the East Rift Valley to sian cultures of Taiwan’s indigenous forces push against one another. Here, bring about a comprehensive mountain- tribes thrive in dozens of villages. Tens as elsewhere along the Ring of Fire, ocean dialogue.” of thousands of other inhabitants have a occasional earth tremors are a fact of One of the most popular elements parent or grandparent who arrived from life. Like Japan, Taiwan has scores of the festival since 2017 has been the mainland China in the late 1940s, and of hot springs – but the only active Moonlight Sea Concert. This year, the still others were born in Southeast Asia. volcanoes are a handful of small yet concert includes musical performances Since 2016, the government has beguiling cones that spew warm mud on August 4, 5, and 6; September 3, 4, been organizing and promoting the rather than red-hot lava. and 5; and October 2, 3, and 4. Taiwan East Coast Land Arts Festi- Hualien and Taitung lie on the Musicians, dancers, and others val (the TECLandArt Festival for short) frontline of this tectonic conver- whose art and ethos embrace and reflect to bring the artistic achievements of gence. The boundary between the two the themes of the festival have been easterners to a wider audience, attract plates runs north-south through the invited to perform. The range of genres leading artists from home and over- East Rift Valley, also known as the is extremely broad: Whatever your pref- seas to the region, and give travelers Huatung Valley or the Longitudinal erences, you are sure to find something

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that delights your eyes and ears. For international visitors, the Moon- light Sea Concert is an opportunity to see artists who seldom perform outside Taiwan. ZenKwun is a six-piece band that overlays Western rock beats with traditional Chinese instruments like the erhu, guqin, and suona. Yokuy Utaw is a member of the indigenous Atayal tribe from Taiwan’s northwest, but she sings Mandarin ballads and soft pop. The Skaraoke Jazz Orchestra is a brass- dominated swing ensemble. The main concert venue is an outdoor stage at the Torik Visitor “CHANGE" BY LEE KUEI-CHIH AND LUA RIVERA Center, an hour’s drive north of Taitung City. A stone’s throw from the visitor han’s “Soga Monster” meditates on words “trash” and “fashion,” and refers center, the Amis Folk Center hosts regu- the damage humanity has wrought on to the creation of useful and/or beautiful lar performances of Amis folk music the environment. Lamenting the disap- items using discarded materials. and dancing throughout the year. The pearance of the fireflies and fish he The festival’s Trashion contest is 214,000-strong Amis people is the remembers seeing around his childhood asking artisans and artists to design and largest of Taiwan’s 16 recognized indig- home, his work explores the relation- make garments and other wearables enous ethnic groups. ship between society and the materials that reflect both local and multicultural Among the artists showcasing it uses and discards. “Soga” is the themes. Almost any kind of repur- important works this year is Ou Zhou, Taiwanese pronunciation of “plastic.” posed or recycled material can be used. also known as Nogdup. Ou, an ethnic The huge work “Change” is a Contestants who pass the first selection Tibetan who was born in Nepal and co-creation by Lua Rivera from Mexico round will join workshops on August trained as an architect in Taiwan, is and Lee Kuei-chih from Yunlin in 9 and 10, while the final runway show contributing a piece he calls “New southern Taiwan. The “change” in and award ceremony are scheduled for Island/Ancient Soul.” Composed of question is climate change, and the October 4. bamboo, driftwood, metal, and items work seeks to underscore the impor- The current restrictions on interna- retrieved from the coast, it was directly tance of environmental sustainability. tional visitors may not be lifted in time inspired by the tectonic clash that “Trashion” is another exciting for them to attend this year’s festival, shapes Taiwan’s eastern region. dimension of the 2020 TECLandArt but it is not too early to start making Installation artist Chou Hsueh- Festival. This portmanteau combines the arrangements for 2021. Researching attractions on the eastern half of the island is easy, thanks to an abundance of multilingual resources. Travelers drawn to the ocean should browse the website of the East Coast National Scenic Area (www.eastcoast- nsa.gov.tw). Information about the inland parts of Taitung and Hualien can be found on the website of the East Rift Valley National Scenic Area (www.erv- nsa.gov.tw). Back issues of Travel in Taiwan, a bimonthly English-language magazine backed by Taiwan’s Tourism Bureau, can be read online at https://issuu.com/. For all kinds of travel information about the country, visit the Tourism Bureau’s website (www.taiwan.net.tw), or call the 24-hour tourist information

"WAVES OF ARK - INTERTWINING TIDES" hotline 0800-011-765 (toll free within BY SUGIHARA NOBUYUKI AND AYAKA NAKAMURA Taiwan).

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