CIECA News Letter No

CIECA News Letter No. 40 /September, 2015 Index  World News ...... P.01  Europe ...... P.01

 Asia & Oceania ...... P.03  Africa ...... P.08  America ...... P.09  Trade & Investment Delegation and Seminar ...... P.11  The 15th Taiwan-Germany Joint Business Council Meeting ...... P.11  The 29th Joint Conference of ROC-Australia & Australia-Taiwan. . P.13  The 40th Joint Conference of ROC-Korea and Korea-Taiwan Business Councils ...... P.14  The 11th Taiwan-Hungary Joint Business Council Meeting ...... P.16  The 31th Sweden–Taiwan Joint Business Council Meeting ...... P.17  The 4th Finland-Taiwan Business Forum ...... P.18  The 3rd Norway-Taiwan Joint Business Council Meeting ...... P.19  Trade & Investment Opportunities in El Salvador ...... P.19  Taiwan Reports ...... P.20  Taiwan News ...... P.20  Summary of Exports and Imports for September 2015 ...... P.21  Economic Index ...... P.22  An Outline of Republic of China’s Economics ...... P.23  2015 CIECA Event Plan ...... P.26  CIECA’s international business covers all foreign countries and areas, except for USA, Japan and Chinese Mainland, which are handled by certain specially established bi-lateral economic promotion associations.

World News compensation for an alternative reserve Europe option. While the levy now seems to be Germany to shut down coal-fired scrapped, it remained unclear whether plants, extend power grid companies such as RWE or Vattenfall The German government will announce Europe would get compensation on Thursday (2 July) a decision to order payments or not. the shutdown of several coal-fired Unconfirmed media reports earlier in plants in order to reach its ambitious the week have said the utilities may be climate goals by 2020, according to allowed to move 2.7 gigawatts of old government sources. coal-fired capacity into a reserve Chancellor Angela Merkel and the scheme in the coming years, netting a leaders of her two junior coalition few hundred million euros in the parties also settled a dispute over process. (7/2 Reuters) high-voltage power lines which are planned to carry green energy from the breezy north to the industrial south, the Waste oil generated by car oil sources said. changes is recycled to make clean Energy minister Sigmar Gabriel is industrial oil expected to explain the results of the Each time thousands of mechanics and coalition negotiations which lasted workshops across Spain carry out oil more than four hours at a news changes on vehicles, wasted conference on Thursday morning. contaminated oil is generated, which "Coal-fired plants with a capacity of 2.7 has to be disposed of. This dirty oil is gigawatts will be shut down," said the also a side product of many government sources, who declined to manufacturing processes, generating say how many plants will be closed. thousands of tons of dirty oil every "The affected power plants will not be week right across Spain. allowed to sell electricity on the normal Disposed of incorrectly, this oil could energy market," they said, adding that easily contaminate water tables or end with this step Germany would manage up in rivers, water ways, lakes and even to reach its goal to curb CO2 emissions the sea, so correct disposal is essential by 40% by 2020 compared with 1990 to protect the environment from the levels. disaster. Gabriel originally proposed putting a Waste oil across Spain is collected by levy on CO2 emitted by the oldest and an organization called SIGAUS, a body most-polluting power stations above a financed by the major names in vehicle certain threshold to help reach a target manufacturing and vehicle fuel of cutting CO2 emissions from the coal provision, who collect this waste oil sector by a further 22 million tons by and recycle it, collecting the dirty oil 2020. drained out engines during an oil But he faced a backlash from industry, change and converting it into clean fuel with unions saying the plan could put and a clean product, which can be used up to 100,000 jobs at risk and lead to in a number of manufacturing the decline of the mining and power applications as well as for industrial generation industries. fuel. The utility companies have lobbied Recovered oil is treated in different hard against the levy and demanded ways depending on the results of an

initial evaluation of its quality in order and government red tape and to minimize its impact on the bottlenecks have been steadily environment. The majority of waste oil eliminated. can be regenerated, yielding new Much of the credit belongs to reform lubricant bases. And the rest can be Prime Minister and President Turgut treated to produce fuel for industrial Ozal, who held office from 1983 to use. During 2014, SIGAUS carried out 1993. He was a close friend and ally of 174,000 waste oil collection operations, President George H.W. Bush. Their collecting 510 tons of waste, some partnership was vital during the Persian 5710, 000- liter tankers each day of the Gulf War of 1990-91. year. Good News for Everyone The G-20 partnership is of consequence Turkey hosts G-20 meetings, to military and security concerns, symbolizing progress especially given the membership of Turkey has just hosted important China and Russia, but of most direct meetings of top representatives of the importance to economic problems — Group of 20 (G-20) nations. Finance and opportunities. In today's rapidly ministers met Sept. 4-5, labor and evolving global societies as well as employment ministers Sept. 3-4, both economies, there is a large policy in the capital city, Ankara. The agenda. organization began in 1999 to further The fact that poor people worldwide coordinate monetary policies in the are becoming better off is good news aftermath of the enormous Asian for everyone. They represent new financial crisis. The member nations competitors in the global economy, but together account for approximately 85 also our potential consumers and percent of the world's gross economic commercial partners. Thanks to trade product. and investment, general war is less Much discussion was devoted to the likely — though possible. financial and growth problems of China. U.S. President Barack Obama shrewdly This is nothing new. At the 2010 G-20 picked Pittsburgh as the site for the fall summit, held in Seoul, the United 2009 G-20 summit. In the 1980s, that States spearheaded criticism of the city symbolized economic decline, as extremely large financial surpluses domestic steel manufacturing faded and accumulating in China. Other nations at unemployment approached 20 percent. that time criticized growing U.S. debt. Sustained high-tech investment has This time, the most significant news is turned that around. that Turkey holds the G-20 presidency At the 2009 summit, Bill Gates of in 2015. Earlier finance minister Microsoft dedicated a new computer meetings were held in February and science complex at Carnegie-Mellon April in Istanbul and Washington, D.C. University. Apple, Disney, Google and A summit of national leaders is planned Intel are some of the other relatively for November. recent investors in the city. Over the past quarter century, Turkey's The cataclysmic experience of 20th economy has moved from uncertainty century wars demonstrated that to become a powerhouse. Growth has protectionism is ultimately been strong, both corruption and self-defeating and nationalism is inflation have been greatly reduced, dangerous. Likewise, market

competition is generally advantageous. allies return to power. The G-20 provides a workable means "When I spoke to Thaksin, he told me of encouraging prosperity and stability. to pretend to be dead a little longer," The American people made a red shirt leader Kwanchai Praipana, a fundamental commitment to popular pro-Thaksin leader in the international leadership early in our northeastern province of Udon Thani, direct participation in World War II. In told Reuters. early 1942, the Gallup Poll recorded the "He told me to ... wait until the next rapid decline of traditional isolationism. election. That will be the moment that A majority of respondents indicated for we will win. The only question is the first time that the U.S. should play whether an election will ever take an active role in world affairs. This place." commitment has been sustained, though Kwanchai said he spoke to Thaksin a notably reduced for a time after the month ago, though he did not specify Vietnam War. how they communicated. Thaksin, who At the same time, there has been lives abroad to avoid a jail sentence for noticeable growing public support for graft, was ousted in a coup in 2006, but protectionism. International and remains a major figure in Thai politics. regional economic institutions have While the military has kept a firm grip become targets. This is also a long-term on power since it felled the remnants of trend. In 1999, enormous public the government of Thaksin's sister demonstrations occurred against the Yingluck in another coup last year, he World Trade Organization summit and his allies have won every election being held in Seattle. Even President since 2001 and anger is mounting Bill Clinton was taken by surprise. among farmers and political opponents. In future, the G-20 and other leaders The military government has slashed must do a better job of public education, rural subsidies and coup leader and especially in the U.S. as American Prime Minister Prayuth Chan-ocha said leadership is crucial. (9/13, The China this month the next election would not Post) be held until "around" July, 2017, the latest delay to Thailand's return to democracy. Asia & Oceania Thaksin tells Thailand's red shirt DRIVE-BY SHOOTING opposition: 'play dead'... for now The reference to playing dead resonated From self-imposed exile, the influential with Kwanchai, who rolled up his leader of Thailand's rural "red shirt" sleeve to show a scar the length of his opposition movement has delivered a upper arm from a drive-by shooting at simple message to followers chafing at his rural home when Bangkok was the military junta's iron rule: lay low for paralyzed by protests that preceded the now, don't panic, "play dead". coup. Billionaire former Prime Prayuth's ban on political activity has Minister Thaksin Shinawatra, long-time severely curtailed the red shirt political leader of the north's movement and his junta has quashed disenfranchised electorate, is watching any sign of open dissent. events at home closely and urging "They have bullied us too much," said patience from those who want to see his Kwanchai, adding that he has to report his movements to the military every

day. of the Shinawatras. Prayuth staged the coup and banned Without the subsidies, rice farmers political activity after months of have seen their income per kilogram of sometimes deadly street clashes, saying rice fall by about a third and are he had to reconcile a dangerously struggling to pay down debt they took divided society. Many Thais, especially on when times were good. Bangkok's middle class and urban elite, "I'm not that happy at the moment backed the intervention. because agricultural prices for us have But sharp divisions remain and the not been good at all," said farmer Shinawatras retain their popularity in Samrong Pongthai in lush rice fields northern strongholds. outside Udon Thani. A draft constitution that critics said was "The government won't increase the an attempt by Prayuth to prevent a price. It's been a struggle really. You comeback by the Shinawatras was make a loss if you sell it these days." rejected by a military-appointed reform Despite his distaste for populism, council rather than taken to a national Prayuth has turned to one of the referendum that may have become a architects of Thaksin's economic public test of the junta's popularity. policies in an attempt to revive "At first we thought the drafting of the Thailand's stumbling economy. constitution, had it been passed, would But farmers say the soft loans and have been the time to protest," said spending on small projects announced Sabina Shah, a red shirt leader and so far are not enough. radio DJ in the northeastern city of "This government tells us to stop Khon Kaen. The radio station was shut making demands, and to live down after the coup and remains off air. sustainably," said Samai Sribang, who "People want to protest. But they are owns a rubber plantation in Nong Khai afraid, despite facing difficulties and province near the border with Laos. hardship...The economy's been going "But how can it be sustainable if we backwards." can't sell our goods? If Thaksin can Hundreds of activists on Saturday hear us, tell him we are almost dying." defied a ban on protests and marched in Prayuth's government is considering Bangkok in a rare rally against the asking farmers to not plant an military to mark the ninth anniversary off-season crop next year after drought of the coup against Thaksin. left many reservoirs low. It has also Lines of police stood by as crowds of tried to encourage rubber farmers to cut people chanting "no dictatorship" and down trees to reduce oversupply. carrying anti-junta banners marched to Both measures will only add to farmers' the city's Democracy Monument. resentment, said Teerasak Teecayuphan, the mayor of Khon Kaen. "ALMOST DYING" "If that is all the government can come Compared with the Shinawatra clan, up with there is little hope of restoring Prayuth has done little for Thailand's political faith," Teerasak said. farmers. "Sooner or later this pot will boil over. He ended subsidy schemes that You can't suppress it for long if you funneled billions of dollars to don't solve the problems." (9/19 agricultural communities. Reuters) The populist schemes were fiercely criticized as vote buying by opponents

Park seeks reform of South Korea’s dean of Korea University’s business rigid labor laws school. SEOUL – In the past year, Kim Limited labor flexibility makes it Yoon-sung applied to about 120 harder to build the service sector in an companies for a job, and could not land economy dominated by companies like even one. Samsung Electronics and Hyundai Instead, the 26-year-old is on her fourth Motor. Young graduates covet the outsourcing contract, one of tens of conglomerates for their better-paid jobs thousands of young South Korean and are less inclined to join smaller graduates struggling to get regular companies that would follow Park’s employment in Asia’s fourth-largest “creative economy” push. economy. The World Economic Forum ranks “It’s become normal for people in my South Korea 86th for overall labor generation to fail even after writing market efficiency and 106th for applications for well over 100 flexibility in hiring and firing; Japan, companies,” Kim said. “The situation is whose decades of stagnation are often just getting tougher.” invoked by South Korean policymakers South Korea’s rigid labor market is as a cautionary tale, ranks 22nd and increasingly seen as a drag on an ailing 133rd. economy that President Park Geun-hye The Korean Confederation of Trade says needs “major surgery.” Unions (KCTU), the more strident of Park is pushing a revamp in labor laws two big labor umbrella groups, says the that would be the biggest in nearly two reforms would hurt job security and decades. It would change the system of wages and destroy collective bargaining stable employment and seniority-based and has vowed to oppose all ruling remuneration that was part of a social party candidates in parliamentary contract enforced by the unions and elections due next April. underpinned South Korea’s breakneck On Wednesday, it called a nationwide economic growth into the 1990s. strike and held a rally in Seoul that Park wants to make it easier for drew thousands of people. companies to fire low performers, base The opposition New Politics Alliance wages on merit, shorten work hours, for Democracy (NPAD) is demanding ease outsourcing rules and expand any change in labor laws be tied to unemployment insurance. requiring firms to share more profits Her ruling party hopes to push labor and increase employment. With 47 reform legislation through the current percent of parliamentary seats, the session of parliament ending in opposition cannot by itself block law December, but faces opposition from changes, although the NPAD holds the some unions and the main rival party. chairmanship of a key committee that However, the conglomerates that have would review law revisions. driven South Korea’s emergence as an The government is betting that enough industrial power support more flexible voters are discouraged by their job labor laws. prospects to make it worth pushing the “This is the first time in many years legislation ahead of the parliamentary that we are trying to do something to elections. change a problem that is getting ever The last time South Korea made major more serious,” said Kim Dong-one, the changes to labor rules was in 1998, when it enabled companies to lay off

workers under emergency growth has accelerated from 5.2 per circumstances in exchange for a bailout cent in 2012, to 5.4 per cent in 2013 from the International Monetary Fund. and 6 per cent last year. Market At 22 percent, the share of temporary forecasts collated by Consensus workers in South Korea is double the Economics suggest the rate will rise OECD average. Nonpermanent workers again to 6.1 per cent this year and 6.2 are falling further behind on wages, per cent in 2016. earning 54 percent of what regular Dominic Scriven, chief executive of employees earn for similar work, Dragon Capital, the biggest investor in compared with 65 percent in 2004. the Vietnamese stock market bar the Youth unemployment hit a 16-year high government, is more upbeat still, early this year and could worsen as the pencilling in growth of 6.5 per cent this retirement age begins to rise in 2016. year and “close to 7 per cent” in 2016. (9/24 Reuters) “It’s the only economy I know of that is accelerating,” he says. As to why Vietnam has seemingly been Vietnam defies emerging market able to defy gravity when others are slowdown sinking into the mire, analysts point to With the clouds hanging ominously the country’s success in attracting the over emerging markets darkening by sort of low-wage jobs China is the week, there are not many bright attempting to move beyond. spots to lift the gloom. Arguably one of “It is benefiting hugely from rising the remaining shafts of light is wages in China, which is seeing the emanating from Vietnam. relocation of low-end manufacturing Number crunching by Capital elsewhere, mostly within Asia,” says Economics suggests Vietnam is among Gareth Leather, Asia economist at a small band of developing markets to Capital Economics. have delivered stronger economic “It has integrated itself into the supply growth in the past year than their chains of southern China [in sectors average growth rate since 2010. such as] textiles and low-end assembly. All of its four peers in this select China doesn’t really want to be in the group — Hungary, the Czech Republic, position of making T-shirts etc.” Romania and Poland — are eastern While regional rivals such as European nations that have benefited Bangladesh and Cambodia are vying from tumbling oil prices and the for the same jobs, Mr. Leather says relative resilience of the German Vietnam has a geographical advantage economy, a big export market. over them, as well as political stability, Moreover, most of these countries are courtesy of its Chinese-style merely recovering from a global Communist government (9/22 Financial financial crisis-induced slump. Times). While Romania, the Czech Republic and Hungary saw no rise in real gross Profile: Malcolm Turnbull domestic product between 2008 and 2014, Vietnam’s economy expanded by Australia's Minister for 40 per cent (more than twice the rate of Communications Malcolm Turnbull is Poland). set to become Australia's next leader Many believe this success story has after successfully challenging the further to run. Vietnam’s economic leadership of Prime Minister Tony

Abbott. to further his studies at Oxford Mr. Turnbull is known as a competent University. minister and confident communicator Mr. Turnbull briefly worked as a who is well-liked across the political journalist for several outlets, including divide, polls have shown. The Sunday Times in the UK, before The Liberal Party is conservative, but embarking on his law career. the communications minister is known One of his biggest achievements was for his progressive views, notably his defending former British spy Peter support for climate change action and Wright in the "Spycatcher" case in the gay marriage. 1980s. Mr.. Wright wrote a memoir Those views are unpopular among the about his time in MI5, and the British more right-wing members of the party, government sought to ban its and some are unconvinced that Mr. publication in the UK. Mr.. Turnbull Turnbull will stick to core party successfully overturned the ban. policies. He went into the technology business in The question of internal support has the 1990s, and co-founded one of the become more crucial in recent months. biggest Australian internet service Amid plummeting support for Prime providers at that time, OzEmail. Minister Tony Abbott, Mr. Turnbull had In 2004, Mr. Turnbull was elected as been touted as a strong contender to the MP for Wentworth, the electoral replace him. seat where he grew up and where he Polls conducted by research company continues to live with his wife Lucy Ipsos Australia, including the latest Hughes, who was the first female Lord done in August 2015, had consistently Mayor of Sydney. found him to be the most preferred He quickly rose through the person to be the Liberal leader and parliamentary and party ranks, serving prime minister, over Mr. Abbott and on various committees. He was briefly Foreign Minister Julie Bishop. the environment and water resources In February, Mr. Turnbull was widely minister in John Howard's government expected to challenge the leadership, before his party's coalition lost to Labor but the Liberal party voted not to open in the 2007 federal election. up Mr. Abbott's position to challengers. He was elected as leader of the Lawyer and businessman opposition in 2008, but a year later A successful former lawyer and faced two leadership challenges, losing businessman, Mr. Turnbull is now one the second one narrowly to Mr.. Abbott of the richest politicians in Australia, by just a single vote. having made the Business Review Mr. Turnbull's downfall was attributed Weekly Rich 200 List several times. to his views on climate change and Raised by a single parent, he grew up in support for an emissions trading the Vaucluse and Double Bay scheme. neighbourhoods of Sydney. However, his credibility was also He attended a state school as a child severely damaged when he attacked and later received a scholarship to then-PM Kevin Rudd over an email attend a private high school. After purportedly showing corruption, but studying law at the University of which was later found to have been Sydney, he won a Rhodes scholarship faked by a top civil servant. The

so-called "OzCar" affair damaged his 3.4-million jobs by 2030. This would standing with his colleagues and the bring the economy closer to the targets public. set out in the National Development Plan. 'Not greatly loved by party' The "Big Five" list, the product of research into more than 100 ideas, In his current role as the includes advanced manufacturing, communications minister, Mr. Turnbull infrastructure investment, natural gas earned plaudits for doing his job well and agricultural exports. The analysis and having a good grasp of public suggests SA, whose manufacturing policy. He is also known as a skilled sector has shrunk by half to just 13% of orator and debater. the economy, could develop a more Dr. Peter John Chen, a politics lecturer globally competitive manufacturing at the University of Sydney, says: "He base, which will present the most has the hallmarks of an effective significant of the five opportunities. leader... But he is not greatly loved by But — in contrast to the long list of his party, because he tends to be on the manufacturing sectors contained in the left while his party is moving towards Industrial Policy Action Plan — the the right." McKinsey report says the opportunity Mr. Turnbull is also known for his for SA is at the more sophisticated, tendency to be abrasive with colleagues; innovative end of the sector, where he has for instance previously publicly local firms have significant expertise blasted Mr. Abbott's climate change and intellectual property in areas such plan. as motor and machine components. Mr. Turnbull has also been criticised for McKinsey also worked with the failing to consult with his colleagues government and the private sector on before announcing his position on an initiative to establish the potential to issues, such as his support for an develop SA’s natural gas sector, and apology to Australia's indigenous this has fed into the "Big Five" study’s "Stolen Generation". findings on that sector. McKinsey Dr. Sally Young, associate professor of sees the natural gas sector offering SA a politics at the University of Melbourne, chance to meet its power generation says Mr. Turnbull is "more of his own needs within the coming decade while man", describing him as "less also providing the platform for it to intimidated" by powerful media baron develop a gas industry. Rupert Murdoch. (9/14 BBC News) McKinsey’s list of priorities focuses more on nonresources-driven opportunities to boost investment and Africa exports. The report argues that SA has ‘Big Five’ growth opportunities could an opening to use its expertise to lift economy become a leading service provider to This is one of the findings of a new the continent, just as Brazil is in its study by management consultancy region, accounting for 26% of Latin McKinsey, which identifies a "Big America’s service imports. Currently, Five" set of priority growth China, the UK and the US have much opportunities that could add more than bigger shares of Africa’s market for 1% to SA’s growth rate and create services than SA does, even though SA has highly regarded companies, such as

MTN and Standard Bank, with actual level. extensive African operations. Nedlac constituents have already On infrastructure, McKinsey proposes agreed on the definition of a minimum more effective delivery mechanisms wage and that it should be a legal floor that would bring in the private sector for a defined period of time — unless and help to close the R1.2-trillion provided for by an exclusion, phase-in funding gap. or phase-out agreement, or any other The consultancy highlights SA’s upfront agreement. strengths, which include productivity Sacci — through its representatives at levels that compare well with China Business Unity SA — would push for, and Brazil. (9/1, Business Day) among other things, linking any wage adjustment to productivity and not inflation and that the minimum wage be Sacci braces for minimum wage determined by local economic fallout circumstances — even differing at a The South African Chamber of provincial level. (9/25 Business Day) Commerce and Industry (Sacci) will work against the "unintended America consequences" — particularly for small businesses — arising from the Colombia peace deal with Farc rebels establishment of a national minimum 'within six months' wage. President Santos and the rebel leader SA’s largest business chamber resolved known as Timochenko shook hands in at its annual conference on Wednesday Cuba, where the two sides have been to push for a system that could include holding peace talks since 2012. different national minimum wages for On Wednesday, they reached agreement provinces. While its view remained that on how to punish human rights abuses any national minimum wage would be committed during the conflict. "ill-timed" given the current economic The issue had been seen as one of the fundamentals, it recognised that the biggest hurdles on the road to peace. government had all but committed to it. Sacci president Vusi Khumalo warned 'Chance for peace' that a number of Sacci member "We're not going to fail! This is the companies had withdrawn from the chance for peace!," President Santos chamber, citing tight profit margins. said. Sacci remains SA’s largest business "On 23 March 2016 we will be bidding chamber with more than 20,000 farewell to the longest-running conflict member companies. It is represented at in the Americas," he added. the National Economic Development "Let's join efforts to achieve peace," and Labour Council (Nedlac) through Farc leader Timochenko later posted on Business Unity SA (Busa). Deputy the rebels' Twitter feed. President Cyril Ramaphosa told The guerrilla group also agreed to Parliament earlier this month surrender its weapons within 60 days of negotiations between the government, a final accord being signed. business and labour on a minimum US Secretary of State John Kerry hailed wage were proceeding well, while the deal as "historic progress" and Nedlac was still discussing its scope, expressed his "deep appreciation to mechanism of enforcement and the Pope Francis for his moral leadership

and the Vatican's good offices in the Data released on Thursday showed that quest for peace". Brazil's unemployment rate rose for an During his visit to Cuba, Pope Francis eighth straight month in August to its had alluded to previous failed peace highest point in over five years, negotiations between the two sides and although the increase was slightly warned them that "we can't allow smaller than markets expected. another failure on the road to peace and The crisis has fueled concern that reconciliation". (9/24 BCC) another credit rating agency will follow Standard & Poor's example and cut Brazil's rating to junk, forcing many Brazil's Real recovers ground after global funds to dump its bonds from Central bank promises to use all their portfolios. 'instruments available' Treasury Chief Marcelo Saintive said “In this process [to tame volatility], all on Thursday that Brazil would be able instruments are available for the central to avoid further credit downgrades if it bank,” Tombini said. “Foreign reserves succeeded in approving its latest fiscal are an insurance that could and should package and showing long-term be used.” commitment to rebalancing its public The currency rallied further, bringing accounts. its gains for the day to 3%, after the Brazil's Senate will vote next week on Treasury announced a program of daily whether to overturn presidential vetoes debt auctions to provide liquidity to the averting a surge in public spending, a local debt market. But Tombini also major threat to Rousseff's efforts to reaffirmed the central bank's policy of shore up deteriorating government keeping interest rates at current levels finances. (9/25 Merco Press) for a prolonged period, even as it raised its inflation forecast to well above its official target. President Barack Obama and Raul With investors fretting about the future Castro meet in New York of Latin America's largest economy, It was the second time the two leaders Brazil's main stock index, Bovespa met in person this year after decades of suffered early losses of as much as 2% estrangement between the two on Thursday but rebounded and was up countries. 0.2% in late-afternoon trading. They shook hands before beginning A growing political crisis that threatens private talks. On Monday, Mr. Castro to unseat President Dilma Rousseff and called for an end to US economic a deepening economic recession have sanctions on Cuba. Mr. Obama had dragged the Brazilian real to its earlier expressed confidence that weakest level since the currency was Congress would lift the embargo. created in 1994. The currency's President Castro told the UN that weakness has offset the central bank's normal relations with the US would efforts to contain rising inflation only be possible if the US abolished its through interest rate rises. trade embargo. The embargo has been In its quarterly report released in place since 1960 and remains a Thursday, the bank raised its 2016 contentious issue in relations between inflation forecast to 5.3% from 4.8% Cuba and the US. In his speech to the previously. UN, President Obama said he was confident Congress would "inevitably

lift an embargo that should not be in of Taiwan to speak for it at the place anymore". debate.The government's strategy in its On 27 October the UN General bid to join the United Nations in recent Assembly (UNGA) is again scheduled years has been meaningful participation to discuss a resolution condemning the in U.N. agencies and encouraging embargo and calling for its abolition. It diplomatic allies to speak on Taiwan's is the 24th time the UNGA will vote on behalf. the issue, which generally is only For the past two years, the presidents or opposed by the US and Israel. leaders of 18 countries have spoken in Speculation is already rife about how the general debate to support Taiwan, the US will vote this year after its own and the Ministry of Foreign Affairs is president dismissed the embargo as hoping that the number this year will counterproductive and behind the not be any lower. times.The resolutions are unenforceable, Chinese President Xi Jinping (習近平) but a US abstention on a resolution also spoke in the General Debate. critical of US behavior would be He spoke of the importance of global unprecedented. cooperation to create a win-win The Republican-controlled US situation, but did not mention Taiwan Congress has so far refused to lift the or cross-Taiwan Strait issues. embargo.Cuban-American Senator and Leaders from 39 countries spoke on the presidential candidate Marco Rubio first day of the General Debate, which warned that an abstention would be will last for eight days until Oct. 6. "putting international popularity ahead (9/29 CNA) of the national security and foreign policy interests of the United States". Trade & Investment Delegation (9/30 BBC) th The 15 Taiwan-Germany Joint Business Council Meeting Paraguay first ally to speak up for “The 15th Taiwan-Germany Joint Taiwan in U.N. General Debate Business Council Meeting” was held on Paraguayan President Horacio Cartes September 3rd, 2015 in Taipei, Taiwan. praised efforts by the Republic of China The conference was co-chaired by Mr. in lowering tension in the Taiwan Strait Jimmy Chu, Chairman of the Germany Monday, the day the General Debate of Committee of CIECA, and Dr. Michael the 70th session of the United Nations Fuchs, Chairman of the German General Assembly opened. Economic Committee of Taiwan. A Cartes said his country welcomes the total of 160 participants from Taiwan efforts and contributions by the ROC and Germany attended the meeting. Mr. government on lowering the tension in Jong-Chin Shen, Vice Ministry of the strait, which he said ensures peace Economic Affairs, and Mr. Matthias and stability in East Asia. Machnig, State Secretary of Federal He said the international community is Ministry for Economic Affairs and positive of the improvements in Energy, Germany came to give cross-strait relations, and he called on welcome remarks. both sides of the Taiwan Strait to The meeting focused on the topic of continue dialogues and exchanges in a “Industry 4.0: Germany and Taiwan – pragmatic manner. Partners in Automation and Smart Paraguay was the first diplomatic ally Manufacturing”. Several speakers were

invited to make presentations as Committee of CIECA, and Dr. Michael follows: Fuchs, Chairman of the German - “Industry 4.0- The Siemens Economic Committee of Taiwan. It was Perspective” by Dr. Roland Busch, agreed that “The 16th Taiwan-Germany Member of the Managing Board, Joint Business Council Meeting” will Siemens AG, Germany be held in 2016 in Germany. - “Productivity 4.0- Now & the coming Future” by Dr. Ming-Ji Wu, Director General, Industrial Development Bureau, Ministry of Economic Affairs - “Making Use of Industry 4.0 – Technology Improves Quality” by Mr. Charlie Chen, Sales Director of Factory Automation, Bosch Rexroth - “Advancing Intelligent Automation toward Taiwan Productivity 4.0” by Dr. Shuo-Hung Chang, Executive Photo of both Chairmen and VIP guests Vice President, Industrial (Left1：Dr. Theodore M. H. Huang, the Technology Research Institute long-standing chairman of - “Digitalisation and Its Impact on TECO-Group, Left 2：Mr. Jong-Chin Trading Practices ” by Mr. Dirk Shen, Vice Ministry of Economic Affairs, Sänger, Managing Partner, C. Left 3：Dr. Roland Wien, Executive Melchers GmbH & Co. KG Director, German Trade Office Taipei, - “Smarter and Greener Left 4：Mr. Jimmy Chu, Chairman of the Manufacturing” by Mr. Yancey Hai, Germany Committee of CIECA / Chairman, Delta Electronics Right1：Mr. Martin Eberts, Director - “Industry 4.0- a SME Perspective” General, German Institute Taipei, Right by Mr. Lukas Czaja, International 2 ： Mr. Matthias Machnig, State Industry Manager-Machine Tools, Secretary of Federal Ministry for Igus GmbH Economic Affairs and Energy, Germany, - “Enabling Industry 4.0 with IoT Right 3：Dr. Michael Fuchs, Chairman Innovations” by Mr. Albert Huang, of the German Economic Committee of Vice President, Industrial Taiwan and Right 4：Dr. Roland Busch, Automation Group, Advntech Co., Member of the Managing Board, Ltd. Siemens AG, Germany) During the meeting, Former Chairman of the Germany Committee of CIECA, Dr. Theodore M. H. Huang, the long-standing chairman of TECO-Group, was presented with the Officer’s Cross of the Order of Merit of the Federal Republic of Germany in honor of his distinguishing contributions to German-Taiwanese relations. A Joint Agreement was signed by Mr. Jimmy Chu, Chairman of the Germany Mr. Martin Eberts, Director General,

German Institute Taipei (Right 2) - “SMEs Support and Finance in presented the Officer’s Cross of the Taiwan” by Mr. Rueen-Fong Chu, Order of Merit of the Federal Republic Chairman, Taiwan Business Bank of Germany to Dr. Theodore M. H. - “Overview of Resources Import in Huang (Left 2) Taiwan & The New Business of Formosa Plastics Group” by Mr. Y.C. Chen, Chairman, Formosa Ha The 29th Joint Conference of Tinh Steel Corporation ROC-Australia & Australia-Taiwan - “Raw Materials Procurement and Business Councils Investment of CSC Group in The 29th Joint Conference of Australia” by Mr. Po-Wen Lo, ROC-Australia & Australia-Taiwan Geologist, Resources Development Business Councils” was held on Department, China Steel September 4, 2015 in Darwin, Australia. Corporation The conference was co-chaired by - “The Role of Resources in the Chairman Jo-Chi Tsou of ROCABC Development of the Northern and Chairman Ross Maddock of ATBC. Territory” by Mr. Ian Scrimgeour, The Lord Mayor Katrina Fong Lim of Executive Director, Northern the City of Darwin was invited to give Territory Geological Survey, greetings at the plenary session. Various Department of Mines and Energy issues, namely “Infrastructure, of NT Government Investment and Financial Services”, - “CPC Corporation, Taiwan Current “Minerals and Energy”, “Tourism and E&P Activities and its Outlook” by Education” and “Agribusiness” were Mr. Yea-Jer Hu, Director, discussed. A total of 143 participants Exploration & Production Business from Taiwan and Australia attended the Division, CPC Corporation, Taiwan meeting. - -“The Perspectives on NCYU To increase the time available for Promoting International Education discussions and exchange of opinions, and Developing Strategic The Northern Territory Government International Partnerships” by Dr. proposed the addition of a forum into Yu-Jang Li, Dean of International the agenda to provide the high-level Affairs, National Chiayi University management of the businesses of our - “Tourism and Investment in the two nations with time to exchange their Northern Territory” by Ms. Valerie experiences. The Honourable Peter Smith, Director Policy and Donald Styles MLA, Minister for Planning of Tourism NT Business, was also invited to give a - “The Agricultural Trade and speech on“Opportunities for Market Opportunities between Partnerships – Unlocking the Potential Australia and Taiwan” by Dr. of Northern Australia” at the forum. Ming-Hong Jean, Director, During the meeting, several speakers Agribusiness Management were invited to make presentations as Department, Taiwan Sugar follows: Corporation - “Chunghwa Post's Strategy as a - “Agribusiness Investment Conglomerate with an Investment Opportunities in the Northern Arm” by Mr. Philip Wen-Chyi Ong, Territory” by Ms. Lorraine Corowa, Chairperson, Chunghwa Post. Co. Director of Major Economic Ltd. Projects, Department of Primary

Industry and Fisheries, Northern Territory Government After the plenary session, the Australia-Taiwan Business Council Limited organized the ROC delegation to visit Charles Darwin University and a mango farm. CIECA and the Australia-Taiwan Business Council Limited will hold the 30th Joint Conference of ROC-Australia & Australia-Taiwan Business Councils at Kaohsiung in 2016 after the 21st Taiwan-Australia Joint Energy and Group photo of VIP delegates from Minerals, Trade and Investment Australia and Taiwan Cooperation Consultations.

The 40th Joint Conference of ROC-Korea and Korea-Taiwan Business Councils In order to promote the economic and trade relations between Taiwan and Korea, Mr. Francis K.H. Liang, concurrently Chairman of ROC-Korea Business Council, CIECA and TAITRA led the delegation to Korea and th attended the 40 Joint Conference of The 29th Joint Conference of ROC-Korea and Korea-Taiwan ROC-Australia & Australia-Taiwan Business Councils, which was held on Business Councils between Australia September 9, 2015 at FKI Conference and Taiwan—from left Dr. David Tawei Center in Seoul, Korea. The Meeting Lee, Representative, Taipei Economic was co-chaired by Mr. Kwangjoo Choi, and Cultural Office in Australia; Ms. Chairman, Korea-Taiwan Business Catherine Jane Raper, Representative, Council, FKI. Around 75 participants Australian Office; The Honourable from Taiwan and Korea attended the Peter Donald Styles MLA, Minister for meeting. Mr. Lee Sang-jin, Director Business, Minister for Asian General for Trade Cooperation Bureau, Engagement and Trade; Dr. Jo-Chi MOTIE, Korea and Amb. Ting Joseph Tsou, Chairman, ROC-Australia Shih, Representative of Taipei Mission Business Council and China Steel in Korea were invited to give special Corporation; Mr. Ross Maddock remarks as guests of honor. Chairman, Australia-Taiwan Business The Plenary Session discussed 5 topics Council Limited and a total of 9 guest speakers from both Taiwan and Korea gave presentations on relevant topics as follows: Position/Organizat Topic Speaker ion “Expanding Mr. Head of Invest

Trade & Ki-Won Korea, KOTRA During the visit in Seoul, the ROC Investment Han Invest Korea delegation visited Celltrion Inc., a Cooperation” Mr. Tom Director, Taiwan South Korean biopharmaceutical Tung-Chu Trade Center, company, is making headway in a ng Tseng Seoul newly emerging category of medicine Head of Industry known as biosimilars. It already Mr. 4.0, Smart developed its first biosimilar drug Joung-Wo Factory Project, Remsima, a copy of Johnson & o Lim “Opportuniti SK Holdings Johnson and Merck & Co.’s es for Chairman of anti-inflammatory biologic drug Cooperation New Taipei City Remicade. The delegation also visited in ICT Dr. Computer Songdo International City, which is Industry” Chi-Yuan Association and more than a hi-tech business district, Chin Chairman of but a template for future developments Silicon Touch for Korea. They toured G-Tower Technology Inc. Information Hall, U-city Integrated Research Fellow, Management Center and the Zones 5 “Opportuniti the Korea Automated Waste Collection Plant. es for Research Both Korea and Taiwan hope that this Mr. Lee, Cooperation Institute for tour can explore future business Jae-Yong in Human cooperation. Smart-City” Settlements (KRIHS) Mr. Executive Soo-Youn Director, Chong “Opportuniti g Choi Kun Dang Pharm es for President, Cooperation Medical and in Bio & Pharmaceutical Dr. Leah Pharmaceuti Industry Lo cal Industry” Technology and Development Center Executive Welcome Dinner hosted by FKI at Samcheong Director for Gak on September 8, 2015 Overseas Mr. You, Marketing Se-Joon Department, “Opportuniti Korea Tourism es for Organization Cooperation Director, Seoul in Tourism” Office, Tourism Bureau, Ministry Ms. Lydia of Transportation Huang and Communications R.O.C.

Opening Ceremony of the 40th Joint Conference of ROC-Korea and Korea-Taiwan Business Councils

ROC delegation visit Songdo U-City Integrated Management Center

th Chairman Liang and Chairman Choi The 11 Taiwan-Hungary Joint Business Council Meeting exchange gifts th “The 11 Taiwan-Hungary Joint Business Council Meeting” was held on th September 15 , 2015 in Taipei, Taiwan. The conference was co-chaired by Mr. Robert Ou Young, Acting Chairman of the Hungary Committee of CIECA, and Dr. László Parragh, President, Hungarian Chamber of Commerce and Industry. Nearly 70 participants from Taiwan and Hungary attended the meeting. Ms. Shu-Mei Yang, Deputy Director General, Bureau of Foreign Trade, MOEA, Mr. Albert János, ROC delegation visit Celltrion Inc. Acting Representative, Hungarian Trade Office, Taipei and Mr. Frank Liu, Founder & CEO, Chi Fu Investment Holdings Group came to give welcome remarks. The meeting focused on the topic of “Taiwan ICT Outlook”, “Pharmaceutical and Biotech Industry”, “Economic Environment of Hungary” and “Successful Experience Sharing in Europe”, several speakers were invited to make presentations as follows: - “Taiwan ICT Outlook and Collaboration Opportunities ROC delegation visit Songdo G-Tower between Taiwan and Hungary” by Ms. Meili Hsiao, Director General, International Division, Institute for

Information Industry Fair Friend Group, left 4 in the front - “Introduction of the Hungarian row: Mr. Frank Liu, Founder & CEO, National Trading House” by Ms. Chi Fu Investment Holdings Group, left Mengyi Li, Director of Sales Asia, 5 in the front row: Mr. Robert Ou Young, Hungarian National Trading House Acting Chairman of the Hungary - “Click on Hungary” by Mr. Daniel Committee of CIECA, left 6 in the front Lorincz, Investment & Trade row: Dr. László Parragh, President, Director, Hungarian Trade Office, Hungarian Chamber of Commerce and Taipei Industry) - “The Demand of Pharmaceutical and Biotech Industry in Taiwan” by Mr. Muh-Hwan Su, General The 31th Sweden–Taiwan Joint Manager, SynCore Biotechnology Business Council Meeting Co., Ltd. “The 31th Sweden–Taiwan Joint - “The Agriculture/Food Industry of Business Council Meeting” was held on Hungary provides High-Quality September 21, 2015, in Stockholm, Product Propositions and Business/ Sweden. The Meeting was co-chaired Trade Opportunities” by Dr. Füle by Mr. Mats H Olsson, Chairman, János Róbert & Mr. Gyula Weeber, Senior Vice President and Head of Vice President, Chi Fu International Asia-Pacific, Ericsson, and Mr. Co., Ltd. (Exclusive Representative Mu-Piao Shih, President, Chunghwa of Hungarian National Trading Telecom Co., Ltd. The following VIP House) guests were invited to present greeting - “FFG Successful Experience remarks. More than 100 participants Sharing in Europe” by Mr. Jimmy from Sweden and Taiwan attended the Chu, Chairman, Fair Friend Group meeting. A MOU was signed by Mr. Robert Ou 1. Mr. Jong-Chin Shen, Vice Minister, Young, Acting Chairman of the Ministry of Economic Affairs, Hungary Committee of CIECA, and Dr. Ministry of Economic Affairs, László Parragh, President, Hungarian Taiwan Chamber of Commerce and Industry. It 2. Mr. Oscar Stenström, State Secretary, will strengthen the business Ministry of Enterprise and relationship for both countries. Innovation, Sweden 3. Mr. Fredrik Fexe, Vice President Strategy and Business Development, Business Sweden - the Swedish Trade & Invest Council During the meeting, participants focused on the relevant issues of these sectors:“ICT (4G/5G, Smart City, IoT),” “Green Energy (Renewable energy & energy efficacy)” for discussion and the speakers invited to make presentations are as follows: 1. “Road to 5G” by Mr. Ulf Pehrsson, Photo of both Chairmen, VIP guests Vice President Government and and Hungarian delegation (left 3 in the Industry Relations, Ericsson AB front row: Mr. Jimmy Chu, Chairman, 2. “IoT, Big Data and Cloud

Development” by Dr. Lir-Fang SUN, following VIP guests were invited to Vice President, Data present greeting remarks. A total of 50 Communications Business Group, participants from Finland and Taiwan Chunghwa Telecom Co., Ltd. attended the meeting, 3. “Enabling the Nordic IoT Future” 1. Mr. Severi Keinälä, Deputy Director by Mr. Hans Dahlberg, Vice General, Ministry of Employment President, TeliaSonera Global M2M and Services the Economy of Finland 4. “Make a City Smarter-Virtual Power 2. Ms. Angela C.L. Lin, Representative, Plant” by Mr. Wu-Chi HO, Deputy Taipei Representative Office in General Director, Green Energy and Finland Environment Research Laboratories, During the meeting, participants Industrial Technology Research focused on the relevant issues of these Institute sectors: “ICT (4G/5G, Smart City, The programs were also arranged for IoT),” “Green Energy (Renewable delegates to visit local companies, energy & energy efficacy)” for namely Ericsson, and Sungard Data discussion and the speakers were Center, conduct on-site study and invited to make presentations as exchanges. The visit started a new page follows: of Taiwan-Sweden bilateral economic 1. “Industrial Internet in Business and relations. Society - Tieto's View” by Mr. Olli Nurminen, Sales Director, Industrial Internet, Tieto 2. “5G MTC Small Cell Testbed Development in Taiwan” by Mr. Yi-Chieh Chang, Deputy Director General, Smart Network System Institute, Institute for Information Industry 3. “Mastering the Energy Transition - Increasing Energy System Flexibility” by Professor Peter Lund, Department of Applied Co-Chairmen of “The 31th Physics, Aalto University, School Sweden–Taiwan Joint Business Council of Science Meeting”: Mr. Mats H Olsson (right) 4. “Make a City Smarter-Virtual and Mr. Mu-Piao Shih (left) Power Plan” by Mr. Wu-Chi Ho, Deputy General Director, Green Energy and Environment Research The 4th Finland-Taiwan Business Laboratories, Industrial Technology Forum Research Institute The 4th Finland-Taiwan Business Taiwan delegation also visited private Forum” was held on September 24, companies and government agencies, 2015, in Helsinki, Finland. The namely Smart Kalasatama, Digile, and Meeting was co-chaired by Mr. Markus Nokia. Suomi, President & CEO, Finpro, and Mr. Mu-Piao Shih, President, Chunghwa Telecom Co., Ltd. The

Production in Rivers” by Mr. Reidar Vestby, CEO of Deep River 2. “5G MTC small cell testbed development at Taiwan” by Mr. Yi-Chieh Chang, Deputy Director General, Smart Network System Institute, Institute for Information Industry 3. “e-Government” by Mr. Frode Preber Ettesvoll, Adm. dir., More Software Solutions AS 4. “Global Partnerships” by Mr. Petter Co-Chairmen of “The 4th L. Johannessen, Director, Telenor Finland-Taiwan Business Forum”: Mr. Group Markus Suomi (left 2) and Mr. Mu-Piao Taiwan delegation also visited relevant Shih (right 5) companies and agencies, namely DNV GL and The Bellona Foundation.

The 3rd Norway-Taiwan Joint Business Council Meeting “The 3rd Norway-Taiwan Joint Business Council Meeting” was held on September 25, 2015, in Oslo, Norway. The Meeting was co-chaired by Mr. Lars Kåre Legernes, Managing Director, Oslo Chamber of Commerce and Mr. Mu-Piao Shih, President, Chunghwa Telecom Co., Ltd. The following VIP guests were invited to make greeting remarks. A total of 45 participants from Norway and Taiwan attended the Co-Chairmen of “The 3rd meeting. Norway-Taiwan Joint Business Council 1. Mr. Svend Haakon Kristensen, Head Meeting”: Mr. Lars Kåre Legernes of Customer Operations & (front right) and Mr. Mu-Piao Shih Regional Director Asia, Innovation (front left) Norway 2. Ms. R. Jane Cheng, Representative, Taipei Representative Office in Trade & Investment Opportunities Norway in El Salvador During the meeting, participants Vice President Ó scar Samuel Ortiz focused on the relevant issues of these Ascencio of El Salvador led a sectors: “ICT (4G/5G, Smart City, high-powered delegation to visit IoT),” “Green Energy (Renewable Taiwan on September 6-10 to promote energy & energy efficacy)” for bilateral ties and seek more cooperation discussion and the speakers were opportunities between R.O.C. and El invited to make presentations as Salvador. follows: The Chinese International Economic 1. “New Technology for Electric Cooperation Association (CIECA)

organized a seminar on “Trade & Taiwan Reports Investment Opportunities in El Salvador” at Regent Taipei Hotel on MOEA hoping to keep economic September 8, 2015. Mr. C. Y. Wang, growth above 1% Chairman of CIECA, presided over the Economics Minister John Deng (鄧振 seminar. 中) admitted Thursday that it will be H. E. Ó scar Samuel Ortiz Ascencio, difficult for Taiwan to keep its Vice President of El Salvador and H.E. economic growth above 1 percent this Amb. Simon S. Y. Ko, Acting Minister year but he pledged that his ministry of MOFA were invited to make special will do its best to achieve that goal. remarks. H.E. Sra. Luz Estrella Deng made the remarks during a Rodríguez, Vice Minister of Economy, legislative hearing when he was asked made a presentation on “Trade and by a legislator if the government will Investment Opportunities in El have any problems keeping the Salvador.” A total of 130 participants country's economic growth above 1 from both sides attended the meeting. percent this year. "Of course there are problems, but the Ministry of Economic Affairs will work hard (to overcome the problems)," he said. As of August, Taiwan's exports had declined for seven consecutive months. Industrial production, meanwhile, had dropped for the fourth month in a row, while sales of trade and food services had fallen for the sixth straight month. The Directorate General of Budget, Accounting and Statistics (DGBAS) Welcome Remarks by Mr. C. Y. Wang, has already lowered its economic Chairman of Chinese International growth forecast for this year to 1.56 Economic Cooperation Association percent, down from the previous projection of 3.28 percent made in late May. It is widely believed that the DGBAS will further trim its forecast. Asked if there has been an increase in the number of workers put on unpaid leave this year, Deng said there has not been an obvious increase. Citing data from the Ministry of Labor, Deng said 946 workers from 21 companies had been put on unpaid leave as of Sept. 15. Of these, 116 were working for optoelectronics companies, he said. (9/24 CNA) Special Remarks by H. E. Amb. Simon S. Y. Ko, Acting Minister of MOFA Yuanta-Polaris reduces GDP growth forecast to 1.15% Yuanta-Polaris Research Institute (元大

寶華研究院 ) yesterday slashed its “Although Taiwan’s prospects will economic growth forecast for Taiwan to continue to face long-term headwinds, 1.15 percent this year, amid slowing near-term demand for Apple Inc’s global trade due to developing markets’ iPhone 6S and Internet of Things worse-than-expected performances. applications might bring intermittent The institute’s latest forecast is 2.14 relief to the nation’s electronic percentage points lower than its components sector,” Liang said. previous estimate in June and less than The institute cut expected export the 1.56 percent predicted by the growth this year to 0.31 percent from government last month. its previous estimate of 3.59 percent in However, given the low basis set this June, saying exports might shrink by year, Taiwan’s GDP might grow by 2.3 1.24 percent this quarter and 1.7 percent next year, it said. percent next quarter. “Taiwan’s slowing economic growth The institute forecast that exports has become a matter of national would grow by 1.79 percent annually security, and persistent stagnation is next year. expected as the nation has Regarding rising concern that Taiwan is accomplished little to address lingering poised to see deflationary pressure, structural factors hampering its Liang said that the anticipated long-term prospects,” institute devaluation of the New Taiwan dollar chairman Liang Kuo-yuan (梁國源) against the greenback will continue to said at a news conference. keep the issue at bay, adding that the Liang said that slowing global trade is nation’s consumer price index for this the greatest structural factor hampering year is forecast to fall by 0.21 percent growth for the nation’s export-oriented annually and grow by at most 0.82 economy. percent next year. GDP is likely to contract by 0.35 “In light of the current political percent from a year earlier this quarter atmosphere, it is likely that the central before expanding by 0.79 percent next bank will be compelled to reduce quarter, the institute said. interest rates, but this should not be the “Global GDP growth in 2012 outpaced focus,” Liang said. the increase in global trade for the first “Politicians might not be aware of the time since the 1950s,” Liang said. fact that interest rate cuts have little However, tangible progress toward positive effect in times of stagnant eliminating tariffs and trade barriers has economic growth. The nation should been lacking in recent years, he said, instead contemplate its diminishing adding that global investment sentiment competitiveness,” Liang said. has been on the decline since the global “An interest rate cut would further financial crisis of 2008-2009, leaving a exacerbate Taiwan’s income disparity significant amount of funds dormant, and create gains for very few,” he said. despite near-zero interest rates. (9/23 Taipei Times) Other structural factors affecting Taiwan include the rise of China’s Summary of Exports and Imports so-called “red supply chain,” the global for September 2015 transition from production-based to Highlights knowledge-driven industries and a For the month of Sep. 2015, total rapidly aging population. exports contracted 14.6% year on year

to US$ 22.54 billion. However, total Economic Index imports fell 16.7% from a year earlier % Change 2015 to US$ 17.3 billion. The trade balance on 2013 2014 of this month was favorable, amounting previous May June Aug to US$5.25 billion. year GDP 2.23 3.77 0.64 - 0.52 1. Exports In Sep. 2015, comparing with the same CPI 0.79 1.20 -0.73 -0.56 -0.45 month of last year, exports of electronic Unemploy 4.18 3.96 3.62 3.71 3.74 products, basic metals and articles ment rate thereof, plastics & rubber and articles Export 1.4 2.7 -3.8 -13.9 -14.77 thereof, machinery, chemicals declined 9.9%, 16.9%, 10.6%, 11.4% and 20.5% Imports -0.2 1.5 -5.4 -16.1 -16.69 respectively. Export 0.4 6.7 -5.9 -5.8 -8.3 orders 2. Imports Industrial 0.7 6.4 -3.5 -1.4 -5.46 In Sep. 2015, comparing with the same production month of last year, imports of mineral Monetary products, electronic products, chemicals, aggregate 5.8 6.1 6.9 6.3 6.01 machinery, basic metals and articles (M2) thereof declined 45.1%, 13.8%, 22.2%, TWSE 5.9% and 36.9% respectively. Stock 8,612 9,307 9,701 9,323 8,156 Index Trade Performance for September (Sources: Ministry of Finance 2015-10-07) 2015 Unit：US$ million；% September Jan. - September Annual Annual Amount Change Amount Change Rate Rate Exports 22,540 -14.6 212,4009 -9.4 Imports 17,300 -22.4 173,840 -16.5

Trade 5,250 48.4 38,570 45.8 Balance

(Dept. of Statistics – 2015-10-07)

Republic of China Updated October 8, 2015 General Information Land Area 36,193 sq. km Population 23.46 million (06/2015) Population of Capital Taipei 2.70million Capital National Day October 10 Country Code 886 Exchange Rate US$1=NT$ 30.36 Currency New Taiwan Dollar per USD (2014 Ave.) 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 Chi-Kuo MAO, Minister of Foreign Affairs David Y. L. LIN, Ministry of Economic Affairs Cheng-Chung DENG, Minister of Finance Sheng-Ford CHANG 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), Parties People First Party (PFP), Taiwan Solidarity Union

Economic Statistics of 2014 Economic Growth GDP US$5,297 billion 3.28% Rate Consumer Price -0.65% Inflation GDP per capita US$24,118 Unemployment 3.68% Rate

Major electronics, communications and information technology Industries products, chemicals, textiles, iron and steel, machinery, cement, pharmaceuticals Exports US$ 212.4 billion (Jan.-September, 2015) US$ 313.8 billion (2014) US$ 305.4 billion (2013, up 1.4% of 2012) Major Export Electronic integrated circuits, Liquid crystal devices, Petroleum Items oils and 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, Markets Malaysia, Germany, Philippines Imports US$173.84 billion (Jan.-September, 2015) US$ 274.2 billion (2014) US$ 270.0 billion (2013, down 0.1% of 2012) Major Import Electronic integrated circuits, Petroleum oils and oils obtained Items from 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 hydro carbons, Coal; briquettes, ovoid and similar solid fuels manufactured from coal Major Import Japan, China, U.S., Korea, Saudi Arabia, Australia, Germany, Markets Malaysia, Singapore, Kuwait Foreign US$426.3 billion (until September, 2015) Reserves (Source: Central Bank of the Republic of China (Taiwan)) Outward FDI US$ 8.09 billion (2012) US$ 5.23 billion (2013) US$ 7.29 billion (2014) (Source: Investment Commission, MOEA) Inward US$ 5.55 billion (2012) Investment US$ 4.93 billion (2013) US$ 5.77 billion (2014) (Source: Investment Commission, MOEA) Foreign Direct Stock: US$ 134.8 billion (1952~2015.08) Investment FDI: US$ 1.38 billion (2015 01~08) (Source: Investment Commission, MOEA)

FTAs signed 1. FTA between the Republic of China (Taiwan) and the with Trading Republic of Panama – August 21, 2003 Partners 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. ECFA(Economic Cooperation Framework Agreement)– June 29, 2010 6. ANZTEC (Agreement between New Zealand and Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu on Economic Cooperation)-July 10, 2013 7. ASTEP(Agreement between Singapore and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu on Economic Partnership)- November 7, 2013 Sources: MOFA; Bureau of Foreign Trade, MOEA; Investment Commission, MOEA; EIU; National Statistics R.O.C; Dept. of Statistics, MOEA

2015 CIECA Tentative Event Plan （Asia, Africa, Latin America, South Asia, Middle East） Revised on 2015/10/12 No. Date Events Venue

1. January 27 Trade and Investment Opportunities in La Rioja, Argentina Taipei

2. February 4 The 29th CACCI Conference Planning Committee Meeting Hong Kong

3. M arch 17 ICC’s Permanent Heads of National Committees meeting Singapore

4. March 18 ICC’s Extraordinary meeting of the ICC World Council Singapore March 31- The 2nd Taiwan-Cambodia Joint Business Councils 5. Cambodia April 3 Meeting 6. April 20 The 15th Taiwan-Malaysia Joint Economic Conference Taipei

7. April -June Trade and Investment Opportunities in Nicaragua Taipei May 16-20 8. The 12th Taiwan-Brazil Joint Business Councils Meeting Taipei (Postponed) Annual ICC conference on Corporate Responsibility and 9. May 20-21 Paris Anti-Corruption The 14th Taiwan-Mongolia Joint Business Council 10. May 26 Taipei Meeting 11. June 6-14 The 9th World Chambers Congress Italy The 20th Joint Economic Cooperation Conference between 12. June 14-17 Jakarta Indonesia and Taiwan The 8th Taiwan-Argentina Joint Business Councils 13. June 23 Taipei Meeting Trade & Investment Opportunities in the Republic of 14. July 24 Taipei Honduras August 22- Casablanca 15. The 1st Taiwan-Morocco Joint Business Council Meeting September 6 (Maroco) August 22- The 2nd Taiwan-Sao Tome& Principe Joint Business 16. Sao Tome September 6 Council Meeting The 29h Joint Conference of ROC-Australia & Australia- 17. September 2-6 Australia Taiwan Business Council 18. September 9 Trade and Investment Opportunities in El Salvador Taipei The 40th Joint Conference of ROC-Korea and 19. September 8-10 Seoul Korea-Taiwan Business Council 20. October 5 The 15th Taiwan-India Joint Business Councils Meeting Taipei

21. October 6 ICC Arbitration & ADR Seminar Taipei

No. Date Events Venue October 21-24 The 25th Joint Economic Cooperation Meeting between 22. (postponed to Taipei CIECA & FTI 2016) 23. October 29-30 The 29th CACCI Conference Hong Kong November 9 The 21st Joint Business Council Meeting between CIECA 24. (postponed to Taipei & VCCI 2016) 25. November 14-15 B20 Turkey

26. December The 4th Taiwan-Saudi Joint Business Councils Meeting Taipei

2015 CIECA Tentative Event Plan Europe Revised on 2015/10/8 No. Date Events Venue Seminar on Business Cooperation Opportunities in 1. March 25 Taipei Ireland The 21st Taiwan-Holland Joint Business Council Hague 2. May 8 Meeting (Holland) The 1st Taiwan-Croatia Joint Business Council Zagreb 3. May 11 Meeting (Croatia) The 3rd Taiwan-Portugal Joint Business Council Lisbon, 4. May 18 Meeting (Portugal) Madird, The 19th Taiwan-Spain Business Cooperation 5. May 21 Bacelona Committee (Spain) Seminar on Business Cooperation Opportunities in 6. June 3 Taipei Romania The 13th Taiwan-Poland Joint Business Council Warsaw 7. June 10 Meeting (Poland) The 4th Taiwan-Bulgaria Joint Business Council 8. June 12 Sofia (Bulgaria) Meeting 9. June 23 The 4th Taiwan-Italy Joint Business Council Meeting Taipei Seminar on Business Cooperation Opportunities in 10. June 25 Taipei Federation of Bosnia and Herzegovina The first or second Seminar on Business Cooperation Opportunities in 11. week of September Taipei Russia (postponed) The 15th Taiwan-Germany Joint Business Council 12. September 3 Taipei Meeting September 7-11 The 6th Taiwan-Turkey Joint Business Council Istanbul 13. (postponed to Meeting (Turkey) 2016) September 7-11 The 3rd Taiwan-Georgia Joint Business Council Tbilisi 14. (postponed to Meeting (Georgia) 2016) The 11th Taiwan-Hungary Joint Business Council 15. September 15 Taipei Meeting The 31st Taiwan –Sweden Joint Business Council Stockholm 16. September 21 Meeting (Sweden) Helsinki 17. September 24 The 4th Taiwan-Finland Business Forum (Finland ) The 3rd Taiwan-Norway Joint Business Council 18. September 25 Oslo (Norway) Meeting Taiwan Economic & Trade Delegation to Switzerland and 19. October 1 Zurich (Swiss) Italy

No. Date Events Venue The 1st Taiwan-Swiss Joint Business Council Meeting Taiwan Economic & Trade Delegation to Switzerland 20. October 4-8 Milan (Italy) and Italy The 14th Taiwan-Czech Republic Joint Business 21. October 13 Taipei Council Meeting Taiwan Economic & Trade Delegation to Bosnia and 22. October 17-20 Bucharest Herzegovina, Romania and Albania Taiwan Economic & Trade Delegation to Bosnia and Sarajevo¸ 23. October 21-24 Herzegovina, Romania and Albania Mostar Taiwan Economic & Trade Delegation to Bosnia and 24. October 24-28 Tirana Herzegovina, Romania and Albania Taipei The 17th Joint Meeting of Taiwan Britain Business 25. November (Postponed to Council 2016) 26. November 2-8 The 4th Estonia-Taiwan Business Forum Taipei The 8th Taiwan-Austria Joint Business Council 27. November 9 Taipei Meeting The 8th Taiwan-Luxembourg Joint Business Council 28. November 12 Taipei Meeting The 16th Taiwan- Belgium Joint Business Council 29. November 19 Taipei Meeting