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Looking Southward 向南看 TAIWAN BUSINESS TOPICS February 2019 | Vol February 2019 | Vol. 49 | Issue 2 THE AMERICAN CHAMBER OF COMMERCE IN TAIPEI IN OF COMMERCE THE AMERICAN CHAMBER Looking Southward 向南看 TAIWAN BUSINESS TOPICS TAIWAN February 2019 | Vol. 49 | Issue 2 Vol. 2019 | February 中 華 郵 政 北 台 字 第 SPECIAL REPORT 2019 BUSINESS CLIMATE SURVEY INDUSTRY FOCUS 5000 號 執 照 登 記 為 雜 誌TECHNOLOGY 交 寄 ISSUE SPONSOR Published by the American Chamber Of NT$150 Commerce In Taipei Read TOPICS Online at topics.amcham.com.tw 2_2019_Cover2.indd 1 2019/2/6 下午10:11 CONTENTS NEWS AND VIEWS 4 Editorial In a Tough Year, Focus on Reform and Innovation FEBRUARY 2019 VOLUME 48, NUMBER 2 6 President’s View Staying Positive in 2019 Publisher By William Foreman William Foreman Editor-in-Chief 7 Taiwan Briefs Don Shapiro By Don Shapiro Art Director/ / Production Coordinator Katia Chen Manager, Publications Sales & Marketing Caroline Lee COVER SECTION Translation Kevin Chen, Yichun Chen, Charlize Hung, Looking Southward Andrew Wang 向南看 By Don Shapiro 撰文／沙蕩 12 The New Southbound Policy American Chamber of Commerce in Taipei 129 MinSheng East Road, Section 3, in a New Context 7F, Suite 706, Taipei 10596, Taiwan P.O. Box 17-277, Taipei, 10419 Taiwan 南向 Tel: 2718-8226 Fax: 2718-8182 e-mail: [email protected] The New Southbound Policy, website: http://www.amcham.com.tw launched in 2016 to enhance Taiwan’s contacts with countries 050 2718-8226 2718-8182 in the surrounding region, Taiwan Business Topics is a publication of the American has recently taken on added Chamber of Commerce in Taipei, ROC. Contents are 17 Cultivating Talent in the independent of and do not necessarily reflect the views of the significance. The deterioration in Officers, Board of Governors, Supervisors or members. U.S.-China economic relations Region © Copyright 2019 by the American Chamber of Commerce in Taipei, ROC. All rights reserved. Permission to reprint original has placed the spotlight on material must be requested in writing from AmCham. Production done in-house, Printing by Farn Mei Printing Co., Ltd. Southeast Asia and India as prime 19 A Commitment to Fostering areas for future growth in trade Regional Healthcare 10866 and investment. Taiwan’s efforts 5000 ISSN 1818-1961 to enhance relations with those countries cover a broad spectrum 21 Conducting an Annual Dialogue Chairman: Leo Seewald of activity, including cooperation in Vice Chairmen: C.W. Chin, Petra Jumpers education, healthcare, agricultural 南向 Secretary: Fupei Wang Treasurer: Al Chang development, and industrial 22 Wedding the Southbound 2018-2019 Governors: Anita Chen, C.W. Chin, Petra innovation. and “5+2” Innovation Jumpers, Leo Seewald, Daniel Tseng, Fupei Wang. 15 Going South to do Programs 2019-2020 Governors: Agricultural Training 南向 Al Chang, Albert Chang, Seraphim Ma, Jan-Hendrik Meidinger, Paulus Mok. 南 2019 Supervisors: Vincent Shih, Terry Tsao, Dylan Tyson. COMMITTEES: Agro-Chemical/ Melody Wang; Asset Management/ Christine Jih, Derek Yung; Banking/ Paulus Mok; Capital Markets/ Nadia Chen, Mandy Huang, C.P. Liu; Chemical Manufacturers/ Charles Liang, Michael Wong; Cosmetics/ Shirley Chen, Abigail Lin; CSR/ Lume Liao, Fupei Wang; Energy/ Randy Tsai; Human Resources/ Vickie Chen, Monica Han, Seraphim Ma; Infrastructure/ Wayne Chin, Paul Lee; Insurance/ Linda Tsou, Dylan Tyson; Intellectual Property & Licensing/ Jason Chen, Peter Dernbach, Vincent Shih; Marketing & Distribution/ Wei Hsiang; Medical Devices/ Raghavendra Shenoy, Joanne Yao; Pharmaceutical/ Petra Jumpers, Wendy Lin; Public Health/ Joyce Lee, Sophia Lee, Tim Shields; Real Estate/ Tony Chao; Retail/ Ceasar Chen, Mark Chen, Peggy Liao; Sustainable Development/ Kenny Jeng, Cosmas Lu, Kernel Wang; Tax/ Stella Lai, Cheli Liaw; Technology/ Cynthia Chyn, Hans Huang; Telecommunications & Media/ Thomas SPECIAL REPORT Ee, Joanne Tsai; Transportation & Logistics/ (tba); Travel & Tourism/ Pauline Leung, Achim v. Hake. 23 AmCham Taipei’s 2019 Business Climate Survey results 2 TAIWAN BUSINESS TOPICS • FEBRUARY 2019 2 contents.indd 2 2019/2/6 下午9:26 FEBRUARY 2019 • VOLUME 49 NUMBER 2 COVER SPONSOR Technology for Social Impact A Report on the Technology Sector Blockchain, Supply Chains, and Smartphones By Matthew Fulco 40 Taiwan Eyes Blockchain Business To become Asia’s blockchain hub, Taiwan will need to overcome bureaucratic inertia and stiff com- petition from Singapore and Hong Kong. Microsoft is the worldwide leader in software, services, devices, 42 Taiwan’s Trade War Woes and solutions that help people and business enterprises realize With their heavy exposure to their full potential. At our core, Microsoft is the productivity and plat- China, Taiwanese tech firms are form company for the mobile-first and cloud-first world. We reinvent feeling the bite of the U.S. tariffs productivity to empower every person and every organization on on Chinese goods. 44 Chinese Smartphone Brands the planet to achieve more. Find their Footing in Taiwan Adroit marketing and retailing Microsoft Taiwan Corporation was established in 1989, and in the have helped China’s top handset more than two decades since then, we have demonstrated our firm makers boost sales in Taiwan, but commitment to being a responsible local industry partner as well as concerns about data security are mounting. perform our corporate social responsibility. As a company, and for our employees as individuals, we value integrity, honesty, openness, personal excellence, constructive self- criticism, continual self-improvement, and mutual respect. We are committed to our customers and partners and have a passion for technology. We take on big challenges, and pride ourselves on seeing them through. We hold ourselves accountable to our cus- SPONSORED CONTENT tomers, shareholders, partners, and employees by honoring our 5 Bayer’s G4A Program commitments, providing results, and striving for the highest quality. Aids Healthcare Startups’ Development Technology is a powerful force for improving people's lives. But 48 Seeing Taiwan right now, half the world does not have access to the benefits and Kick Off Your Small-Town opportunities that technology offers. Microsoft Philanthropies are Roaming in Beigang committed to doing more globally to bring the benefits of technol- 50 Novartis: At the Forefront of Innovative Medicine ogy to the people and organizations who need them most. Together with our grantees, partners and employees around the world, we’re working to fulfill Microsoft’s mission to serving the public good through innovative technologiesTAIWAN and BUSINESS partnerships. TOPICS • FEBRUARY 2019 3 2 contents.indd 3 2019/2/11 下午2:18 E D I T O R I A L In a Tough Year, Focus on Reform and Innovation aiwan needs to be prepared to face a challenging year in That approach to business also dovetails nicely with the Taiwan 2019. That’s one of several key messages from AmCham government’s economy strategy of promoting the “5+2 Innovative T Taipei’s recently released Business Climate Survey. Industries”: high-tech (including artificial intelligence, the internet Notably fewer of our member executives – about 45% of things, and blockchain), biomedicine, green energy, smart compared to 55% a year ago — expressed confidence in the machinery, and national defense/aerospace. In the AmCham survey, economic outlook for the coming 12 months. nearly 54% of the respondents agreed that the “5+2” plan would Significantly, however, the business leaders surveyed are far benefit Taiwan’s economic development and about 42% said the more optimistic about the prospects this year for revenue growth plan would influence their company’s decision on future business in their own businesses. That figure was a high 80%, the same expansion in Taiwan. as last year, according to the survey, featured in this issue of our A second noteworthy message from the Business Climate magazine. Survey is that progress is being achieved in areas of major concern Why the difference? Essentially, the main reasons for the lower to AmCham companies. The change may be slower than desired, expectations for Taiwan’s economic performance in 2019 appear but the progress being achieved is nevertheless encouraging. to be external factors beyond the companies’ control. These Regarding both the composition of future energy supply and the include the impact of the current U.S.-China trade conflict, the labor-policy treatment of professional employees, for example, “America First” economic policy of the Trump administration, and companies see a welcome trend of greater flexibility. Beijing’s increasing pressure on Taiwan. They are also more satisfied than previously with the process for But when it comes to the outlook for their own business, the establishing new laws and regulations, as well as the consistency of executives tend to have a deep-seated understanding of the specific implementing the regulations after their enactment. Over 70% of problems they are likely to be confronting and strategies for those surveyed credited the government’s National Development how to manage them. A prime example comes in the reply to the Council with providing effective assistance to AmCham committees survey question that asked what the main source of opportunities in facilitating progress in the Chamber’s White Paper issues. for business growth will be for the respondent’s company in the With a resolute emphasis on innovation and continued deter- year to come. A resounding 43.6% answered “Product or Service mined efforts to tackle chronic obstacles to meeting its economic Innovation.” potential, Taiwan
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