CIECA News Letter

No. 13 / June, 2013 Index  Headline News ……………………………………………….. P.01 signs economic cooperation pact with New Zealand  Special Report ……………………………………………….. P.03

Taiwan, China sign service trade pact

Economics minister tries to allay fears over service trade pact

MOEA stands by service trade pact with mainland  Joint Meeings, Seminar and Trade & Investment Mission … P.07 The 15th Joint Meeting of the Taiwan Britain Business Council The 20th Netherlands – Taiwan Joint Business Council Meeting  Guests From Abroad ………………………………………….. P.11

Mr. C.Y. Wang, Chairman of CIECA, hosted a luncheon for Mr. Ross Maddock, Chairman of Australia-Taiwan Business Council Ltd. (ATBC) Mr. Leon Lee, Secretary General of CIECA, hosted a working luncheon for Mr. Ahmad Syafri, Representative of Indonesian Economic and Trade Office to  Economic News ……………………………………………….. P.12  Activity News ……………………………………………… .. P.25  An Outline of Republic of China’s Economics ……………….. P.27

Headline News Wellington by Taipei Economic

Taiwan signs economic cooperation and Cultural Office Representative pact with New Zealand Elliot Charng and New Zealand Taipei, July 10 (CNA) Taiwan Commerce and Industry Office in signed an economic cooperation Taipei Director Stephen Payton, is agreement (ECA) with New considered to be of great Zealand Wednesday, a pact it sees importance to trade-oriented as a starting point for its Taiwan's long-term economic participation in regional economic development. integration. It is the first free trade deal The agreement, signed in that Taiwan has ever signed with a

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country with which it does not percent after the agreement is fully maintain diplomatic relations. implemented.

Taiwan signed an Economic After the pact is signed, Cooperation Framework Taiwan is expected to see its Agreement (ECFA) with China in exports rise by US$144 million 2010, but that was a broader and imports increase by US$139 framework deal seen as a million, according to a CIER precursor to a comprehensive free report. trade pact in the future. Taiwan's manufacturing sector The pact is named the is expected to benefit significantly Agreement between New Zealand from trade with New Zealand and the Separate Customs following the signing of the pact. Territory of Taiwan, Penghu and The petrochemical industry Matsu on Economic Cooperation and related chemical, plastic and (ANZTEC). rubber sectors, along with the electronics industry are expected The Separate Customs to be the biggest winners. Territory of Taiwan, Penghu, Kinmen and Matsu is the name The agreement is aimed at under which the nation was cutting tariffs by 1-5 percent on admitted to the WTO in 2002. industrial and agricultural products the two countries import from The Chung-Hua Institution for each other, an official familiar Economic Research (CIER) with the matter said. estimates that Taiwan is expected to see its GDP increase 0.008 In 2012, Taiwan's exports to percent as a result of initial tariff New Zealand amounted to reductions under the ANZTEC, a US$524 million and its imports figure that could rise to 0.394 from the country totaled US$690

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million. Taiwan is New Zealand's The substantive negotiations 12th-largest export market and on the agreement concluded in 15th-largest source of imports. May. The pact still has to be reviewed by the Legislature. New Zealand was Taiwan's (2013/07/10 Central News eighth-largest source of Agency) agricultural imports in 2012, and Taiwan ran a US$600 million Special Report agricultural trade deficit with the Taiwan, China sign service trade pact country last year. Taiwan and China signed a

service trade pact Friday in The agreement is expected to Shanghai to open the service lower the cost of agricultural sectors on both sides, a move products from New Zealand that designed to deepen ties across the are popular in Taiwan, according Taiwan Strait. to the Council of Agriculture.

The pact was signed in New Zealand is Taiwan's Shanghai by Lin Join-sane, 43rd-largest agricultural export chairman of Taiwan's Straits market. Taiwan mainly exports Exchange Foundation (SEF), and cakes, vegetable oil and vegetables Chen Deming, president of the to the country. Beijing-based Association for

Relations Across the Taiwan Taiwan has previously signed Straits (ARATS). bilateral free trade agreements

(FTAs) with five of its diplomatic The SEF and ARATS are allies in Central America that quasi-official organizations accounted for less than 1 percent responsible for cross-strait of Taiwan's overall external trade relations in the absence of official in 2012. ties.

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The move is expected to He said 398 Chinese strengthen the Economic investment projects were approved Cooperation Framework between June 2009, when Taiwan Agreement (ECFA) signed first opened its doors to between the two sides in 2010. investment from China, and the end of May, but only 216 Chinese Taiwan is also expected to executives or technicians had sign a goods trade pact and a come to work in Taiwan on those dispute settlement agreement with projects. China in future talks. (2013/06/21 Central News Agency) As of the end of 2012, Chinese investors in Taiwan had Economics minister tries to allay hired 6,771 local workers, he fears over service trade pact added. Economics Minister Chang Chia-juch attempted to dispel fears Under the cross-strait service Tuesday that a service trade pact trade deal signed in Shanghai on signed with China will allow June 21, China has agreed to open Chinese workers into Taiwan and 80 service categories to Taiwanese hurt the job prospects of local investors, compared with 64 workers. categories being opened by Taiwan to Chinese investment. Chang said that during past rounds of openings to China The agreement has been investment in Taiwan, harshly criticized by the Chinese-invested projects opposition Democratic Progressive generally hired Taiwanese workers Party (DPP) for the lack of with the exception of a few transparency of the negotiations, executive positions, citing and DPP spokesman Lin government figures. Chun-hsien said it would fight the deal in the Legislature and on the

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streets. government's handling of the service pact negotiations and its Lin said the Economic keeping lawmakers in the dark Cooperation Framework during the process, the Legislature Agreement (ECFA) signed has pushed for a role in approving between Taiwan and China in the agreement. 2010 had not only not upgraded Taiwan's economy but actually It reached a consensus locked Taiwan into China. Tuesday that it would review the pact line by line and that the The service trade pact, as a agreement would not be legally follow-up agreement to the ECFA, binding until it passed the would be just as bad, Lin said, lawmaking body. because it would make any future increases in wages impossible. Legislative Speaker Wang Jin-pyng said Tuesday the But Lin warned that the ECFA Mainland Affairs Council -- follow-up pact on trade in goods Taiwan's main China policy that government hopes to complete planning agency -- will brief the by the end of the year would even Legislature on the service trade be more dangerous to Taiwan's pact Wednesday. (2013/06/25 economy. Central News Agency)

The DPP also opened a MOEA stands by service trade pact with mainland complaint hot line (02-2321-5236) to let affected manufacturers and TAIPEI -- The Ministry of other sectors voice their Economic Affairs (MOEA) said grievances, adding that the party yesterday that the newly signed would help convey their views. service trade agreement between Taiwan and China will not open Unhappy with the Taiwan's doors to Chinese workers,

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despite claims to the contrary by The lawmakers argued that opposition lawmakers. under the existing administration directives, each approved Chinese In the cross-Taiwan Strait investment project valued at more trade deal signed June 21, Taiwan than US$200,000 will be allowed has only agreed to open to Chinese to have two Chinese nationals investment and Chinese posted in Taiwan. companies' opening business footholds here, officials of the “The administrative rules can MOEA's Department of be revised at any time, without the Commerce said, rebutting need for legislative review,” they allegations that the pact will open said, expressing concern over the Taiwan's employment market to possibility of such a restriction Chinese workers. being relaxed.

Earlier in the day, Legislators Pan made note of Taiwan's Pan Men-an and Wu Yi-chen, both recent agreement to open the of the opposition Democratic construction and related service Progressive Party, publicly blasted sectors to Chinese investors. The the service trade deal as “a poison category covers “construction apple” in the employment market. waste cleaning services,” meaning that “even the jobs of cleaners are The apple will “turn business rendered to the mainland,” he said. owners into middle aged or elderly According to Pan, around 77,000 jobless,” “narrow the gap between people in Taiwan work in the the average wages in Taiwan and building cleaning and China in the service sector,” and waste-handling sectors, which draw Chinese immigrants provides services ranging from disguised as investors to Taiwan, washing buildings and waxing they predicted. floors to pest control and waste recycling.

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MOFA officials called the Approximately 260 participants possible impact on such workers from Taiwan and UK attended the “exaggerated,” saying that Chinese meeting. businesses in Taiwan will be required to hire local people as During the plenary session, frontline workers.(2013/06/29 The Mr. SCHIVE Chi, Minister China Post) without Portfolio, Executive Yuan delivered a speech on “Why RMB Joint Meetings, Seminar and Products Matter?”. Mr. Stephen Trade & Investment Mission Green, Chief Researcher, Greater

The 15th Joint Meeting of the Taiwan China, Standard Chartered Bank Britain Business Council made a presentation on “China and The 15th Joint Meeting of the the World Economy in 2013-14“. Taiwan Britain Business Council The signing of two Memorandums (TBBC) was held on June 4, 2013 of Understanding (MOU) signified in Taipei. The meeting was the close and solid cooperative co-chaired by Mr. Leslie Koo, relationship between the Railway Chairman, Industries of the two countries. Corporation and Sir Thomas One is between Funkwerk Harris, Vice Chairman, Asia, Information Technologies York Standard Chartered Bank. Mr. Ltd. and China Engineering Francis Kuo-Hsin Liang, Deputy Consultants, Inc. to collaborate on Minister of Ministry of Economic enhancing railway efficiency, and Affairs; Mr. Lyushun Shen, the other is between the UK Ambassador, Taipei Railway Industry Association and Representative Office in the U.K; Chung-Hwa Railway Industry Mr. Christopher Wood, Director of Development Association on British Trade & Cultural Office, information exchange. and Mr. Nick Baird, Chief

Executive Officer, UK Trade & During the sector group Investment were invited to speak discussion sessions, several at the opening ceremony. 7/28

experts were invited to elaborate Martin Barrow, Director, Jardine and expand on various issues of Matheson Ltd. exchanged mutual concerns. The ICT sector, information and views on co-chaired by Mr. Hsiu-Gu Huang, promotion and development of Senior Executive Vice President & creative & cultural parks, Taiwan CTO, Chunghwa Telecom and Mr. brands and its business effects. At Stephen Pattison, Vice President, the closing session, the sector Public Affairs of ARM, focused on co-chairs presented their application of the Cloud conclusions and made some Computing, and Green IT. The recommendations for future Rail sector, led by Mr. John Yu, follow-up and collaboration. Chairman & CEO of CTCI Corporation and Mr. Jeremy Candfield, Director General, UK Railway Industry Association, explored the issues of smarter planning, optimization of railway operation, and collaborative Mr. Francis Kuo-Hsin Liang, Deputy Minister, th opportunities. The Financial & MOEA, speaks at the 15 TBBC meeting

Professional Services sector, presided by Mr. Mark Wei, Chairman of KGI Securities and Mr. Lance Browne, Vice Chairman, Standard Chartered Bank, China, featured a forum on the topic of “Emerging RMB

Internationalization & Cooperation Mr. Leslie Koo, Co-Chairman, presents a gift to Opportunities.” The Travel & Sir Thomas Harris, Co-Chairman Tourism sector, conducted by Mr. Emile C.J. Sheng, President, L'Hotel de Chine Group and Mr.

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Economic Cooperation Association(CIECA). A total of 110 participants from Taiwan and the Netherlands attended the meeting. On behalf of CEICA, Chairman Chang presented a

Funkwerk Information Technologies York Ltd. testimonial plaque of appreciation and China Engineering Consultants, Inc. sign an to Mr. Gerard Vaandrager, Memorandums of Understanding (MOU) outgoing Chairman of NCH, for his valuable contributions and outstanding achievements in enhancing economic relations between Taiwan and the Netherlands over the past years.

Mr. Renè van Hell, Director, UK Railway Industry Association and Directorate-General of Foreign Chung-Hwa Railway Industry Development Association sign an Memorandums of Economic Relations, Ministry of Understanding (MOU) Foreign Affairs and Mr. Francis

Kuo-Hsin Liang, Deputy Minister, The 20th Netherlands – Taiwan Joint Business Council Meeting Ministry of Economic Affairs, The 20th The Netherlands – ROC were invited to make Taiwan Joint Business Council greetings at the opening ceremony. Meeting was held on June 14, Mr. I-Min Tong, Director General, 2013 in the Hague, the Dept. of International Cooperation, Netherlands. The Meeting was Ministry of Economic Affairs of co-chaired by Dr. Jan Siemons, ROC made a presentation on Managing Director of Netherlands “Taiwan: Your Partner in East Asia” Council for Trade Promotion(NCH) at the plenary session. Mr. J. and Mr. Walter Chang, Chairman Wintermans, Director of Modint; of the Taiwan-Dutch Cooperation Mr. Ching-Ming Cho, Chairman of Committee, Chinese International Taiwan Technical Textile

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Association; Mr. Haico van der Heijden, Business Development Manager, Wind Energy of ECN; and Mr. Tien-Ting Liu, Construction Section Manager of OWP Preparatory Committee, China Steel Corporation also delivered presentations during the The 20th The Netherlands – Taiwan Joint Business Council Meeting takes place on June Group Discussion Session. 14, 2013 in the Hague, the Netherlands Business Matching was arranged for participants from both sides to exchange views and explore business cooperation between the two business communities. An

Executive Committee Meeting was held in the afternoon, so that Mr. Francis Kuo-Hsin Liang, Deputy Minister, Ministry of Economic Affairs, ROC speaks at senior delegates from both sides the opening ceremony could review of the results of the 20th JBC meeting and discuss plans for the next meeting. It was agreed that the 21st Joint Business Council Meeting will be held in Taipei in 2014. The 20th JBC meeting was officially adjourned after the signing the Joint

Statement by the co-chairmen. Group Photo of Senior Delegates from both sides

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Signing Joint Statement by co-chairmen (starting from left) CEO Ching-Mei Tuan of ATBC, Chairman Henry Kao of I-Mei Foods, Honorary Treasurer John Kean of ATBC, Guests From Abroad Chairman Ross Maddock of ATBC, Chairman C. Y. Wang of CIECA, National Executive David Mr. C.Y. Wang, Chairman of Chiu of ATBC, Former President Wei Wei of CIECA, hosted a luncheon for Mr. Taisugar, and Secretary-General Leon Lee of Ross Maddock, Chairman of CIECA at the luncheon on June 18 Australia-Taiwan Business Council Ltd. (ATBC) Mr. Leon Lee, Secretary General of CIECA, hosted a working luncheon In honor of the delegation of for Mr. Ahmad Syafri, Representative of Indonesian Economic and Trade Australia-Taiwan Business Office to Taipei Council Ltd. (ATBC) visiting Taiwan from June 17 to June 20, To discuss about preparations Chairman C. Y. Wang of CIECA and arrangements for the 19th hosted a luncheon at the Taipei Joint Economic Cooperation World Trade Center Club on June Conference to be held in Taipei on 18. During the visit, CIECA 12th September 2013, Mr. Leon arranged the Australian guests to Lee, Secretary General of CIECA call on Chairman Chao-Yih Chen hosted a working luncheon for Mr. of Taiwan Sugar Corp. and Ahmad Syafri, Representative of Chairman J. C. Tsou of China Indonesian Economic and Trade Steel Corp. Office to Taipei on 20th June at

Taipei World Trade Center Club. Several staff members of Mr. Lee and Mr. Syafri were also invited to join the lunch. Participants from

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the Indonesian side are Mme. Dina Economic News Setiawati Boediman ,Director of Summary of Exports and Imports for May 2013 Investment Dept. ； Mr. R. Janu Suryanto , Director of Industry (A) Exports Dept.；Mr. Arief M. K., Senior Taiwan’s exports reached US$ Assistant to Investment Dept.；and 26.48 billion in June, up 0.5% Ms. Irene Pan, Assistant to from the previous month, and also Investment Dept. Participants from up 8.6% when compared with the CIECA are Mr. Ernest Lin, Deputy same month last year. Secretary General；Mrs. Jennifer Liu, Section Director ；and Ms. (B) Import Wendy Li, Specialist and desk Taiwan’s imports reached US$ officer for Indonesia. Both sides 23.23 billion in June, up 6.1% pledged commitment to working from the previous month, and also closely to organize the up 6.8% when compared with the forthcoming 19th Joint Economic same month last year. Conference in September of this year. They also expressed strong (C) Trade surplus good will and deep interest to join The trade surplus in June was hands and redouble concerted US$3.25 billion, an increase of efforts to promote and expand 0.64 billion over the same month trade and investment cooperation last year. between Taiwan and Indonesia. Major Economic Index %Change 2012 2013 Mar Apr May GDP 1.25 - 1.26 CPI 1.93 1.37 1.05 1.66 Unemployment 4.24 4.17 4.07 4.06 rate Export -2.32 3.3 - 5.2 Imports -3.18 0.2 - -3.9 Export orders 1.1 -6.60 -1.11 -0.4 Industrial -0.1 -3.28 -0.88 0.07

production Monetary 4.17 3.78 3.71 4.32

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aggregate (M2) formal diplomatic ties with China. Stock Market* 7,457 7,919 8,094 8,083 (Source: Ministry of Finance & Council for Asked about the report, Economic Planning and Development) Florencia Hsie -- deputy

director-general of the ministry's Taiwan-Honduras ties remain friendly: foreign ministry Department of Latin American and Caribbean Affairs -- said it was The relationship between off-base. Taiwan and diplomatically Honduras remains friendly, foreign Honduras has not requested ministry officials said Sunday after financial assistance from Taiwan, local media reported that bilateral Hsie said, stressing that bilateral ties were being hurt by Honduras' cooperation projects were tilt toward China. proceeding as planned.

"Our diplomatic relations with "There is no change in Honduras are friendly and bilateral relations," she stressed. normal," said ministry spokeswoman Anna Kao, On the issue of when downplaying the report earlier in Honduras will assign a new the day by the Chinese-language resident ambassador in Taiwan, United Evening News. Hsie said Taiwan has expressed the hope to Honduras that it will The report said Honduras had send a new ambassador to Taiwan decided to develop relations with as soon as possible. China after Taiwan refused to meet Former Honduran its request for financial assistance Ambassador to Taiwan Mario and would set up a trade office in Alberto Fortin Midence was called China later this year to advance back to his home country for a economic ties with Beijing. new assignment earlier this year, and the Honduran government has Honduras does not have yet to send a replacement.

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consumers to spend more, is The Honduran Embassy's expected to create about NT$24 minister plenipotentiary, Alejandro billion (US$800 million) in Yang Portillo, has been performing commercial opportunities, the ambassadorial duties since the ministry said. return of the former ambassador, Hsie said. The initiative is just one of several the government is taking to Honduras is one of Taiwan's revive an economy that has 23 diplomatic allies. Since late last remained stubbornly sluggish this year, there have been concerns that year. Honduras would open a trade office in China and eventually On May 24, the Directorate switch its recognition from Taipei General of Budget, Accounting to Beijing. (2013/06/30 Central and Statistics (DGBAS) cut its News Agency) forecast for Taiwan's private consumption growth for 2013 to Shopping festival planned 1.46 percent, from an earlier to stimulate consumption estimate of 1.86 percent made in TAIPEI, Taiwan -- The February. Ministry of Economic Affairs said Saturday that it will hold a The DGBAS also lowered its “shopping festival” in the second estimate of Taiwan's gross half of the year to stimulate domestic product (GDP) growth consumption in Taiwan at a time for 2013 to 2.40 percent from 3.59 when the local economy shows percent, with 0.22 percentage few signs of picking up steam. points of the downward revision attributed to the weaker The festival, which will rely consumption growth forecast. on widespread discounts and promotional activities to get During the July to December

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festival, 25,000 shops around promotes the specialties of the Taiwan will offer discounts on country's many distinctive more than 100,000 products to townships, hope to generate an draw consumers, the ministry said. additional NT$290 million in sales, Stores located in Taiwan's six the ministry said. major metropolitan areas — Taipei, New Taipei, Taoyuan, Taichung, In addition, special discounts Tainan and Kaohsiung — will will be offered to boost spending offer special promotions that the on factory tourism by NT$218 ministry expects to generate million. NT$2.18 billion in sales in retail, wholesale and restaurant The factory tourism project businesses. transforms select old economy factories into tourist destinations The campaign hopes to fuel by exposing visitors to traditional another NT$20 billion in sales by Taiwanese culture and hooking up with the “MIT Smile” manufacturing techniques. project that promotes quality (2013/06/30 The China Post) made-in-Taiwan products, such as electronics goods and garments, Taiwan expects 25% growth the ministry said. in tourism factory revenues TAIPEI--Rising enthusiasm MIT Smile products have for tourism factories among both been certified by the ministry and domestic and overseas tourists will given a Taiwan-made Product MIT help the sector's revenues grow 25 Smile logo to make them stand out percent in 2013 from a year earlier, in the market. the Ministry of Economic Affairs predicted Saturday. Promotions focused on the ministry's “One Town One Product The ministry's central regional (OTOP)” program, which office projected tourism factory

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sector revenues to rise to NT$2.5 billion (US$83.33 million) in 2013, The factories newly up from NT$2 billion in revenues highlighted in 2013 are the Kuo last year. Yuan Ye Museum of Cake and Pastry, which has branches in Visits to tourism factories Yangmei, Taoyuan County and in should also rise to 11.5 million this Taipei, and the Zhong Xin Rice year, from about 10 million in Castle, located in Changhua 2012, the office said. The ministry County. has actively promoted the niche tourism sector since 2003 to Founded in 1867, Kuo Yuan provide a new source of income to Ye is one of Taiwan's oldest manufacturers of traditional traditional cake and pastry brands. products that have been losing The brand set up the museum in their competitive edge largely due 2001 to give the public a glimpse to higher labor costs. of its traditional pastry-making process. The project blends Taiwan's industrial culture and tourism by The Zhong Xin Rice Castle, converting select factories into set up by Taiwanese rice brand popular tourist destinations, the Zhong Xin Rice four years ago, is ministry said. a European style castle complex that hopes to give visitors a better Under the program, run by the understanding of the area's rice ministry's Industrial Technology culture. Research Institute, the ministry screens existing old economy The ministry said it has factories and selects a certain worked with other government number every year to be agencies to bring more resources transformed into tourist to the project and applied attractions. information and communications

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technology to its promotion efforts NT$330 billion, Chu said. to strengthen the quality of the tourism factory experience. Seventy percent of the firm’s (2013/06/30 The China Post) annual revenue of about NT$500 billion is used to purchase energy, he said, adding that the cost of Taipower considers measures to cut costs of energy coal-fired power is approximately NT$75 billion, while natural gas State-run Taiwan Power Co costs about NT$300 billion. (Taipower, 台電) is considering purchasing natural gas and Chu said total power building a receiving station in generation costs had increased Taiwan in an bid to cut energy from NT$1.87 per kilowatt in costs, a top company official said 2003 to NT$3.04 last year because yesterday. of increasing fuel prices. Taipower will reflect these increases by Taipower president Chu adjusting electricity bills in Wen-chen ( 朱 文 成 ) said the October, he said. Also, reserves of company might stop purchasing coal-fuel energy will fall from 45 energy through state-run oil refiner to 36 days, which is expected to CPC Corp, Taiwan (CPC, 台灣中 save NT$200 million as part of 油), as the development of shale efforts to implement an improved gas in the US has contributed to financial plan, Chu said. lowering the price of natural gas. Each power generating plant Taipower’s losses, as of the will be required to calculate its end of last year, stood at capacity and material costs to help NT$193.577 billion (US$6.39 adjust electricity bills, he added. billion), and this year’s figure is (2013/06/24 Taipei Times) expected to reach NT$250 billion, which will jeopardize its capital of

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Taiwan June Export Growth from Japan logged a decline, data Exceeds Expectations showed. Taiwan' merchandise exports increased at a significantly faster The net trade during June rate in June than expected by resulted in a surplus of $3.25 economists, latest data showed billion, which was higher by 24.3 Monday. percent than in the same month of 2012. The forecast was for a Export of goods grew 8.6 surplus of $3.18 billion. percent year-on-year to $26.48 billion in June, the Ministry of In the January-June period, Finance said. Economists were exports and imports recorded looking for a markedly slower annual growths of 2.4 percent and growth of 1 percent. 0.3 percent respectively, resulting in a surplus of $14.61 billion. Exports to Mainland China, (2013/07/08 RTT News) Hong Kong, Japan and Europe recorded increases during the HTC aims high to retake world market month, while dispatches to the United States declined. Smartphone vendor HTC Corp (宏達電), which saw its earnings Imports advanced 6.8 percent fall to a seven-year low last year compared to last year to $23.23 because of intense competition, billion during the month, while the yesterday vowed to regain its expectations were for a 1.5 percent global standing with a long-term fall. target market share of between 10 and 15 percent. Purchases from from Mainland China, Hong Kong, the That is a high goal for the United States and Europe company, which secured just 4 increased, while arrivals from percent of the global smartphone

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market last year, but HTC chief the field, Chou said. executive Peter Chou ( 周永明) told shareholders the company is However, several shareholders confident of making a comeback panned the firm over its product in the global market. launch and marketing strategies.

“Building a globally renowned “Shareholders expect HTC to brand requires time, and we have adopt more effective strategies in seen examples like our biggest response to the stiff challenges rivals in the market [Samsung ahead, after feeling frustrated by Electronics and Apple Inc], which the company’s deteriorating have more than 20 years of earnings performance,” a history — far longer than HTC’s,” shareholder said. Chou said. Several shareholders said Chou asked shareholders to be Chou should resign if the company patient and to maintain their failed to achieve a monthly sales confidence in the company growth of 10 percent over the next because HTC knows its problems three months. and has been making progress on Others questioned the its bid to become a tier-one brand company’s business performance, in the world market. including its shrinking market share, the departure of several key The Taoyuan-based executives, rising research and smartphone maker, which once development expense and a held more than 10 percent of the component shortage. global smartphone market, has set its sights higher, defining success HTC chairwoman Cher Wang as achieving a market share of 10 (王雪紅) said she continues to to 15 percent amid the stiff have faith in HTC, with the challenges facing global players in company last year managing to

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post a net profit — instead of a working to change its marketing loss — despite the many approach. challenges it faced. “The ‘all-metal’ design [of the The company’s net profit HTC One] has drawn an dropped 72.99 percent to overwhelmingly positive feedback NT$16.78 billion (US$557.85 from the media and consumers million) last year from NT$61.97 alike. Anyone with a penchant for billion in 2011. ‘metal’ should appreciate its To appease the about 100 appeal,” HTC said in an e-mailed shareholders who attended the statement. meeting, HTC distributed new HTC One smartphones for free. Even though they were not happy about the company’s Wang did not make a performance, shareholders comment when shareholders asked approved the company’s proposal the company to buy treasury to distribute a cash dividend of shares again to boost confidence. NT$2 per share, based on last year’s earnings of NT$20.17 per HTC chief financial officer share. Chang Chia-lin (張嘉臨) said the company might consider a share HTC shares closed down 0.6 buyback at the appropriate time. percent at NT$248.50 yesterday. He did not elaborate. (2013/06/22 Taipei Times)

HTC did not directly respond China Steel to invest in Malaysian joint to rumors that it is planning to venture to secure raw material supply invite Iron Man movie star Robert Downey Jr to be its major product China Steel Corp ( 中鋼) endorser in a two-year US$12 yesterday said it was planning to million contract, but said it is invest US$62.46 million to

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participate in a joint venture in the statement said. Malaysia to secure access to ferromanganese — an additive Leading the joint venture is used for manufacturing steel South Africa-based Assmang Ltd, products — and to save costs. which holds more than 50 percent of Sakura Ferroalloys’ shares, Through the proposed while a Japanese company owns investment, China Steel could about 25 percent to 30 percent, acquire 19 percent of the Lee said. shareholding in the joint venture, Sakura Ferroalloys Sdn Bhd, the The new investment plan nation’s only integrated steelmaker came on the same day that China said in a statement. Steel told its shareholders that the outlook for the industry would It will also give China Steel remain bleak in the second half of access to 30,000 to 32,000 tonnes the year because of a persistent of ferromanganese a year, securing oversupply of steel and low about one-third of its supply of the product prices. raw material, the company said. So far this year, the company Ferromanganese accounts for has cut its domestic steel prices for between 3 percent and 5 percent of this month and next month’s China Steel’s raw material costs, shipments by 2.08 percent and which reached NT$220.45 billion 4.66 percent per tonne respectively, (US$7.4 billion) last year, due to high production levels in company vice president Steve Lee China and the weak economic ( 李慶超) said by telephone momentum this year. yesterday. “It’s like we are walking in a The new venture is expected tunnel without seeing any light to become operational by 2016, ahead, but we will try to find a

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way out,” China Steel chairman based on the company’s closing Tsou Juo-chi (鄒若齊) said at the price of NT$24.10 yesterday. company’s annual general meeting (2013/06/20 Central News yesterday. Agency)

From January through last Greater Kaohsiung approved as new LME delivery point month, the company posted revenues of NT$147.28 billion, Greater Kaohsiung has moved down 8.91 percent from one step closer to its vision of NT$161.69 billion a year ago, becoming a metals hub after according to a company filing to Kaohsiung Port was approved as the Taiwan Stock Exchange. the delivery point of the London Metals Exchange (LME) in Asia Despite the revenue decline, this week, Taiwan International China Steel registered a pretax Ports Corp (TIPC, 臺灣港務公司) profit of NT$10.64 billion in the said yesterday. first five months of the year, which was up from NT$786.28 million a The world’s largest year ago, because of cost non-ferrous metals exchange reductions, the company said. market chose the city as its ninth location in Asia for primary Shareholders yesterday aluminum, aluminum alloy, copper, approved the company’s plan to lead, nickel, tin and zinc distribute a cash dividend of deliveries. NT$0.4 and a stock dividend of 1 percent, based on last year’s The other locations are earnings of NT$5.81 billion, or Singapore; Nagoya and Yokohama NT$0.38 per share. in Japan; Busan, Gwangyang and Incheon in South Korea; and Johor That represented a cash and Port Klang in Malaysia. dividend yield of 1.66 percent

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Kaohsiung Port first submitted operating there, adding that the its application to be included in the location will become active three LME’s network in 2011. The bid months after the first warehouse is failed because Taiwan’s tax approved. (2013/06/19 Taipei regulations did not meet the Times) LME’s standards.

Taipei ranks 26th in “Club Sandwich The Ministry of Index” annual poll Transportation and Taipei ranked 26th in this Communications then held talks year’s “Club Sandwich Index,” with the Ministry of Finance and making it one of the most managed to have necessary affordable destinations in the regulations amended by the world, online reservations service Legislative Yuan last year. Hotels.com said.

“In the future, non-ferrous The index uses the cost of a metals can be traded and stored in club sandwich in a hotel as a the free-trade zones of Kaohsiung barometer of affordability. It Port,” TIPC said in a statement. provides travelers with an “The status of a metals hub would indication of the cost of living in link Kaohsiung to other ports more their destinations, Hotels.com said. effectively and make Kaohsiung Port a key in the supply chain and Making its first appearance in an international warehousing and the index this year, Taipei was the trans-shipment center.” third-cheapest destination among the world’s 28 major cities. The LME said that the logistical facilities at Kaohsiung According to the survey, a Port ensure that the region, with its club sandwich cost an average of high demand for metal, can be US$11.37 in Taipei, slightly higher well serviced by warehouses than US$10.54 in Mexico City and

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US$9.11 in New Delhi. to offer mobile payment services later this year in collaboration with Geneva was the most Far Eastern International Bank (遠 expensive city, with a club 東國際商銀) and credit card sandwich costing US$30.45. issuer MasterCard Inc. (2013/06/18 Central News Agency) The company will launch a trial project for mobile payments

Far EasTone prepares to wage 4G based on near-field supremacy “war” communication (NFC) technology, Far EasTone Li said. Telecommunications Co Ltd (遠傳 電信) yesterday said it would The trial project will initially tender a bid for a only target smaller mobile fourth-generation (4G) license by payments of less than NT$3,000, the end of the year to speed up its in accordance with the Financial data transmission services with Supervisory Commission’s more bandwidth. regulations, she said.

The nation’s No. 3 telecom “We will begin with our operator has set up a “4G war group’s banks and department room” in preparation for the stores, while seeking external deployment of the 4G network as partners such as fast food chains,” it works toward its goal of being Li said, adding that more details the first local telecoms operator to will be announced at a press operate the new services conference to be held by the end commercially, president Yvonne Li of this month. ( 李彬) told shareholders at an annual gathering. The commission on Tuesday approved Far Eastern International The company said it also plans Bank’s request to run mobile

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payment services through retailing subsidiaries Express over-the-air downloads that allow Infotech Co (德誼數位科技) and users to download virtual credit Arcoa Communication Co (全虹 cards to their NFC-enabled 通信), to 1,000 from 900 last year. smartphones. Far EasTone also said it has Far EasTone is to become the plans to recruit 1,500 people this second carrier in the nation to year to staff its customer service enter the NFC mobile payment division or work as application market after Chunghwa Telecom developers. Co ( 中華電信), the country’s largest mobile provider, teamed up Shareholders yesterday with MasterCard and four local approved the company’s plans to banks to launch a trial plan for issue NT$3.5 in regular and mobile payment services on May special cash dividends per share, 29. the highest dividend yield since 2005. According to market researcher Gartner Inc, the value Last year, Far EasTone issued of worldwide mobile payment cash dividends of NT$3 per transactions will reach US$235.4 common share on profits of billion this year, up 44 percent NT$10.6 billion. (2013/06/14 from the US$163.1 billion Central News Agency) recorded last year. The figure is forecast to increase to US$721 Activity News billion in 2017, Gartner said in a Connecting Taiwan and the World, CIECA Means Business report yesterday.

The CIECA is proud of making an Far EasTone also said it plans announcement – A Brand-New to expand its number of outlets, CIECA’s website starts now. For including those owned by its more information, please link the 25/28

following address to check our new website out. http://www.cieca.org.tw/EngNewI ndex.aspx

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Republic of China Upadated June,2013

General Information Land Area 36,193 sq. km Population 23.3million (1/2013) Capital Taipei Population of 2.65 million (04/2013) Capital National Day October 10 Country Code 886 Currency Exchange Rate US$1=NT$29.464(1/2013) per USD Languages Mandarin, Taiwanese, Hakka, Indigenous languages Religions Buddhism, Taoism, Christianity, Islam Participation Member: in IGOs 1. APEC (Asia-Pacific Economic Cooperation) since 1991 2. WTO (World Trade Organization) since 2002 3. ADB (Asian Development Bank) since 1966

Observer: 1. WHA (World Health Assembly of World Health Organization) since 2009 2. OECD (Organization for Economic Cooperation and Development) – Competition Committee since 2002, Steel Committee since 2005, Fisheries Committee since 2006

Government Head of State President MA Ying-Jeou Cabinet Premier Yi-huah JIANG, Minister of Foreign Affairs David Y. L. LIN, Ministry of Economic Affairs Chia-juch CHANG, Minister of Finance Sheng-Ford CHEN Structure The ROC government is divided into central, provincial and municipal, as well as county and city levels. The central government is consisted of the Office of the President and 5 branches (called “Yuan”) - the Executive Yuan (Cabinet), the Legislative Yuan, the Judicial Yuan, the Examination Yuan, and the Control Yuan. The Cabinet is headed by the Premier, who is appointed by the President of the R.O.C. Major Political Kuomingtan (KMT), Democratic Progressive Party (DPP), People First Parties Party (PFP)

Economic Statistics of 2013 GDP US$483 billion (Est.) Economic Growth 1.67% (1st Quarter Est.) Rate GDP per capita US$20,684 (Est.) Consumer Price 0.74% (2013 May) Inflation 27/28

Republic of China Upadated June,2013

Unemployment Rate 4.07% (2013 April) 4.18% (2012) Major Industries electronics, communications and information technology products, chemicals, textiles, iron and steel, machinery, cement, pharmaceuticals Exports US$26.3 billion (0.9% of the same period of May 2012) Major Export Electronic integrated circuits, Liquid crystal devices, Petroleum oils and Items oils obtained from bituminous minerals (non-crude), Telephone sets and other apparatus for transmission or reception of voice and images, Diodes, transistors and similar semiconductor devices, Printed circuit Major Export China, Hong Kong, U.S., Japan, Singapore, Korea, Vietnam, Malaysia, Markets Germany, Philippines Imports US$21.9 billion (-8% of the same period of May 2012) Major Import Electronic integrated circuits, Petroleum oils and oils obtained from Items bituminous minerals (crude and non-crude), Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines, Petroleum gases and other gaseous hydrocarbons, Coal; briquettes, ovoid and similar solid fuels manufactured from coal Major Import Japan, China, U.S., Korea, Saudi Arabia, Australia, Germany, Malaysia, Markets Singapore, Kuwait Foreign Reserve US$406.62 billion (until 5/2013) Outward FDI US$3.7 billion (2011) (Source: Investment US$8.0 billion (2012) Commission, MOEA) US$1.7 billion (1-5/2013) Inward US$4.9 billion (2011) Investment US$5.5 billion (2012) (Source: Investment US$1.7 billion (1-5/2013) Commission, MOEA) Foreign Direct Stock: US$59.8 billion (2012) Investment Inward Foreign Investment: US$3.68 billion (2012) (Source: Investment Commission, MOEA) FTAs signed with 1. FTA between the Republic of China (Taiwan) and the Republic of Trading Partners Panama – August 21, 2003 2. FTA between the Republic of China (Taiwan) and the Republic of Guatemala – September 22, 2005 3. FTA between the Republic of China (Taiwan) and the Republic of Nicaragua – June 16, 2006 4. FTA between the Republic of China (Taiwan), the Republic of El Salvador, and the Republic of Honduras – May 7, 2007 5. Economic Cooperation Framework Agreement (ECFA) – June 29, 2010 Sources: MOFA; Bureau of Foreign Trade, MOEA; Investment Commission, MOEA; EIU; National Statistics R.O.C; Dept. of Statistics, MOEA

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