Fewer Chinese Tourists

2019/10/3 下午9:59 ISSUE SPONSOR Published by the by Published Commerce Commerce In Taipei October 2019 | Vol. 49 | Issue 10 Issue | 49 Vol. October | 2019 American Chamber Of NT$150 來台陸客萎縮衝擊知多少？來台陸客萎縮 Fewer Chinese Tourists: Tourists: Fewer Chinese What will be the Impact? What will INDUSTRY FOCUS INDUSTRY ENVIRONMENT BACKGROUNDER BILINGUAL MAKING TAIWAN Read TOPICS Online at topics.amcham.com.tw Online at TOPICS Read 號執照登記為雜誌交寄 THE AMERICAN CHAMBER OF COMMERCE IN TAIPEI TAIWAN BUSINESS TOPICS October 2019 | Vol. 49 | Issue 10 中華郵政北台字第 5000 10_2019_Cover.indd 1

CONTENTS NEWS AND VIEWS 6 Editorial Promoting the Exchange of Talent OCTOBER 2019 VOLUME 49, NUMBER 10 推動美台人才交流一○八年十月號 7 President’s View A bruising keynote speech high- Publisher lights one of AmCham’s vital roles William Foreman Editor-in-Chief By William Foreman Don Shapiro 8 Taiwan Briefs Deputy Editor Jeremy Olivier By Jeremy Olivier Art Director/ / 13 Issues Production Coordinator Katia Chen New Era for Cosmetics Regulation; Manager, Publications Sales & Marketing Regulating Dispatch Labor; Good- Caroline Lee bye Saturday Securities Trading Translation Kevin Chen, Yichun Chen, Charlize Hung 化粧品法規新時代；派遣勞工規範；跟週六證券交易說掰掰 By Anna Yang and Niralee Shah

American Chamber of Commerce in Taipei 129 MinSheng East Road, Section 3, 7F, Suite 706, Taipei 10596, Taiwan COVER SECTION P.O. Box 17-277, Taipei, 10419 Taiwan Tel: 2718-8226 Fax: 2718-8182 By Mathew Fulco 撰文／傅長壽 e-mail: [email protected] website: http://www.amcham.com.tw 18 Fewer Chinese Tourists: What will be the Impact? 050 2718-8226 2718-8182 來台陸客萎縮衝擊知多少？

Taiwan Business Topics is a publication of the American Chamber of Commerce in Taipei, ROC. Contents are Beijing’s latest weaponization of independent of and do not necessarily reflect the views of the Officers, Board of Governors, Supervisors or members. tourism illustrates the risk of relying © Copyright 2019 by the American Chamber of Commerce in Taipei, ROC. All rights reserved. Permission to reprint original on the mercurial China market. material must be requested in writing from AmCham. Production done in-house, Printing by Farn Mei Printing Co., Ltd.

22 Taiwan’s Cruise Industry is 10866 Shipshape 5000 台灣郵輪產業日益成長茁壯 ISSN 1818-1961 The burgeoning cruise market has

Chairman: Leo Seewald raised Taiwan’s profile in the travel Vice Chairmen: C.W. Chin, Albert Chang sector and revitalized the port of Secretary: Fupei Wang Treasurer: Al Chang Keelung.

2018-2019 Governors: Anita Chen, C.W. Chin, Leo Seewald, Daniel Tseng, Fupei Wang. BACKGROUNDER

2019-2020 Governors: 32 The Push To Make Taiwan Al Chang, Albert Chang, Seraphim Ma, Jan-Hendrik Meidinger, Paulus Mok. Bilingual The promotion of English profi- 2019 Supervisors: Vincent Shih, Terry Tsao, Dylan Tyson. ciency is designed to increase COMMITTEES: Agro-Chemical/ Melody Wang; Asset Management/ competitiveness in the interna- Christine Jih, Derek Yung; Banking/ Paulus Mok; Capital tional arena. 34 Tainan: Markets/ Mandy Huang, C.P. Liu; Chemical Manufacturers/ Charles Liang, Michael Wong; Cosmetics/ Shirley Chen, By Niralee Shah Bilingual Policy Pioneer Abigail Lin; CSR/ Lume Liao, Fupei Wang; Energy/ Randy By Steven Crook Tsai; Human Resources/ Vickie Chen, Monica Han, Carmen Law; Infrastructure/ Wayne Chin, Paul Lee; Insurance/ KT Lim, Linda Tsou, Dylan Tyson; Intellectual Property & Licensing/ Jason Chen, Peter Dernbach, Vincent Shih; ANALYSIS Marketing & Distribution/ Wei Hsiang; Medical Devices/ Jeffrey Wang, Joanne Yao; Pharmaceutical/ Rie Nakajima; 36 Regulating Tobacco in Taiwan Public Health/ Joyce Lee, Sophia Lee, Tim Shields; Real Estate/ Tony Chao; Retail/ Ceasar Chen, Mark Chen, Peggy Requires Nuance Liao; Sustainable Development/ Kenny Jeng, Cosmas Lu, Kernel Wang; Tax/ Stella Lai, Cheli Liaw; Technology/ Smoking rates are declining, but Cynthia Chyn, Hans Huang; Telecommunications & Media/ smuggled untaxed cigarettes remain Thomas Ee, Joanne Tsai; Transportation & Logistics/ (tba); Travel & Tourism/ Gina Tsai. a major problem. By Anna Yang

4 TAIWAN BUSINESS TOPICS • OCTOBER 2019

10 contents.indd 4 2019/10/4 下午4:22 OCTOBER 2019 • VOLUME 49 NUMBER 10 COVER SPONSOR

INDUSTRY F CUS A Special Report on the Environment

Playing a Role in Protecting the Planet

40 Taiwan Turns with the Tide Against Plastics Pollution What used to be known as the “Petrochemical Kingdom” is now leading the fight against the production and use of plastics, or coming up with clever alternatives About 3M By Jules Quartly At 3M, we apply science in collaborative ways to improve lives 43 From “Garbage Island” to a daily. With $32.8 billion in sales, our 93,000 employees connect Model of Recycling with customers all around the world. The Taiwanese have learned the value of “Reduce” and “Reuse” in dealing Established in 1969, 3M Taiwan is based in Taipei and has cus- with the trash households produce. By Jane Rickards tomer engagement centers in Taichung; a warehouse in Dayuan, as well as a plant and a Customer Technical Center in Yangmei, 46 Electric Scooters Could be the Taoyuan City. In 2005, 3M Taiwan Optronics Corporation was Future of Mobility established in the South Taiwan Science Park. Altogether more Given the right government policy than 1,000 3M employees are serving customers around Taiwan. and smart marketing by local Learn more about 3M’s creative solutions to the world’s prob- manufacturers, Taiwan’s love lems at www.3M.com or on Twitter @3M or @3MNewsroom. affair with scooters could help the environment. By Jules Quartly AMCHAM EVENT

12 Happy Anniversary, AmCham 成長 EXECUTIVE SUITE 客客 50 Meet Brian Hockertz of OH! 產業台灣 Study 業客台台台客 SPONSORED CONTENT 產 52 Seeing Taiwan: Bastions of Hakka 成台灣 Culture in Southern Taiwan 業產多

TAIWAN BUSINESS TOPICS • AUGUST 2019 5

10 contents.indd 5 2019/10/4 上午1:05 E D I T O R I A L Promoting the Exchange of Talent

or decades before the establishment of diplomatic rela- forces this summer with the Foundation for Scholarly Exchange tions between the U.S. and the People’s Republic of China (commonly known as Fulbright Taiwan) to establish what is being F in 1979, Americans with a scholarly or professional interest called the Talent Circulation Alliance (TCA). in Chinese affairs invariably spent at least a year in Taiwan – and By providing more channels for young Americans to come often much longer – studying Mandarin or doing research. The to Taiwan for employment and internships, as well as similar result was that a whole generation of American “Sinologists” – the programs enabling talented young Taiwanese to gain practical makers and influencers of U.S. Asian policy – had spent time living experience in the United States, TCA can play a key role in forging on the island. In most cases, that opportunity left them with an the personal relationships that can assure ever-stronger ties between affinity for Taiwan and a deep-seated appreciation of the Taiwanese the two societies. people’s desire to choose their own political system, free of outside The prospective advantages for Taiwan are clear. As AIT intimidation. Deputy Director Raymond Greene explained in introducing TCA In more recent years, many of those who once might have come in August, “By both internationally circulating and professionally to Taiwan have instead gone to China for their studies, research cultivating Taiwan’s talent, Taiwan can further reposition itself as projects, or employment. Far fewer current U.S. China specialists an innovation-based, internationally connected economy.” have the level of understanding of – and sympathy for – Taiwan AmCham Taipei is proud to be playing a part in this endeavor. that comes from direct personal experience on the island. As a founding consultant to TCA, former staffer Amy Chang played A similar trend has taken place in the other direction. At one a key role in conceptualizing the initiative during her tenure as time, young Taiwanese intent on furthering their education beyond AmCham’s director of government and public affairs. a bachelor’s degree were almost certain to head to the U.S. Many In addition, the Chamber has accepted TCA’s invitation to leading figures in government, academia, and business were Amer- take responsibility for preparing a white paper – to be issued ican-educated, deepening the connections between the two societies. together with AmCham’s annual Taiwan White Paper next June – Today, Taiwanese students going overseas enjoy many more that will seek to identify the administrative, regulatory, and legal options, including universities in China. Of those seeking advanced obstacles hindering the effective circulation and cultivation of degrees, many choose to enroll in one of the many graduate talent in Taiwan, and to propose practical steps to alleviate those programs that have been established domestically in recent decades. impediments. Fortunately, both the American and Taiwanese authorities Together with the Taiwan government’s plan (described in this recognize the vital importance for healthy bilateral relations of issue of TOPICS) to greatly raise the English proficiency of the creating more opportunities for the interchange of young talent Taiwan population over the coming decade, the TCA program will between the two countries. In pursuit of that goal, the Amer- contribute to the internationalization of Taiwan’s workforce for the ican Institute in Taiwan (AIT) and Taiwanese government joined benefit of all stakeholders in this economy.

台

國與中華人民共和國建交前的數十年，對中國事務的專案計畫。具有學術或專業興趣的美國人都會來台灣至少住上「人才循環大聯盟」藉由提供更多管道讓美國青年來台就一年，而且往往遠超過一年。他們在這裡學習中文業與實習，並讓台灣青年人才到美國吸取實務經驗，扮演確或做研究，結果養成了一個世代的「中國通」，這些在台灣保美台社會深化人際連結之關鍵角色。住過的美國人制訂或影響了美國的亞洲政策。對多數人來這對台灣可能帶來的益處顯而易見。正如美國在台協會說，那樣的機會讓他們與台灣親近，並且深深體會台灣民眾台北辦事處副處長谷立言8月在介紹「人才循環大聯盟」計想要在不受外力脅迫下，選擇自己的政治制度。畫時所說：「藉著讓台灣人才在國際間流通並接受專業培近幾年來，過去原本會來台灣的人改去中國學習、做研訓，台灣可以發展成為以創新為基礎並與國際接軌的經濟究計畫或就業。相較於過去，美國當今的中國問題專家很少體。」具備親身的台灣經驗，進而對台灣產生深入瞭解以及高度同台北市美國商會很自豪可以參與這項努力。本商會前任情。政府暨公共事務資深總監張韶韵–此計畫創始諮詢顧問，在台灣人才旅外也出現類似趨勢。往年台灣的年輕人在大學「人才循環大聯盟」計畫的擬訂過程扮演關鍵角色。畢業後幾乎全都選擇赴美深造，台灣政府、學術界和產業界此外，商會接受「人才循環大聯盟」計畫的邀請，負責準的重要人士幾乎都曾留美，因此深化了美台社會連結。備一份白皮書，預計列出台灣人才流通與培育面臨的行政與今天，台灣出國留學的選擇多了很多，包括中國的大學。法規障礙，並將針對這些障礙提出具體解決辦法。這份白皮在想要深造的學生當中，也有很多人選擇進入數十年來在台書將與商會預定明年6月發表的年度《台灣白皮書》一起發灣創立的研究所。布。幸好美國與台灣當局都體認到，為兩國青年人才創造更多台灣政府計劃在未來10年大幅提升台灣民眾英語能力（請交流機會，對於健全的雙邊關係極為重要。為達此目標，今參見本期月刊專文），在此背景下，「人才循環大聯盟」計年夏天美國在台協會、台灣政府與學術交流基金會（一般稱畫將對台灣勞動力的國際化做出貢獻，讓與台灣經濟相關的為台灣傅爾布萊特計畫）共同創辦名為「人才循環大聯盟」所有利害關係人均可受惠。

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10 Editorial.indd 6 2019/10/4 上午12:31 PRESIDENT'S VIEW

A bruising keynote speech highlights one of AmCham’s vital roles

’ve attended many conferences this year. I’ve heard a lot of speeches. One of the most interesting and hard-hitting I so far was a talk recently given by Charlene Barshefsky, the top trade negotiator for the U.S. from 1997 to 2001. She spoke last month at AmCham Hong Kong’s annual China Conference, which should be a must-attend event for all our members. Be sure to go next year. The general focus of Barshefsky’s lunch keynote was the U.S.-China trade relationship. In a forceful but balanced pre- sentation, she mercilessly ripped into both Washington and Beijing. Taking aim at the Trump administration, Barshefsky said she doubted that U.S. trade policy was making anyone great again. She complained about a foolish fixation on trade defi- can exchange views and opinions about the big issues that are cits and claimed the last time the U.S. had a trade surplus was affecting business – political, economic, social, and cultural. during the Great Depression. Such an intellectual forum is vital to having a healthy, innova- The U.S.-China trade war has caused longstanding damage tive, and prosperous business environment. to America’s reputation, Barshefsky argued. She worried that Increasingly, there seems to be greater sensitivity about the U.S. will struggle to shed the perception that it’s an unreli- how Beijing might react to such events. Some organizations able trade partner. Barshefsky also warned that America was have been tempted to practice self-censorship, avoiding topics at risk of becoming the supplier of last resort in China. they believe might be frowned upon on the other side of the Next, she aimed her flamethrower at China. Barshefsky Strait. criticized Beijing for abandoning its reform-and-opening That would be a mistake – a betrayal of the sacred tradi- policy and reverting to a statist model operating under its tions of the free and open societies that are so important to own rules. China’s rise wouldn’t have been possible without creating an innovative environment for our businesses. The significant assistance from the rest of the world, she said. The freedom to think and speak gives us a big competitive edge. U.S. security umbrella played a critical role, keeping the peace We’re also living in a time where we’re overwhelmed by in the region for decades so Beijing could focus more on eco- the cacophony of social media, talk radio, and call-in TV nomic development, she added. shows. AmChams need to play a vital role creating a platform Barshefsky said multinational companies were feeling for thoughtful, serious, and balanced speakers who can share more unwelcomed in China. She noted that one-third of all their deep knowledge about the big issues of the day. the trade actions filed by G20 countries were against China. This is what AmCham Taipei has always done and we’ll Barshefsky also urged Beijing to rollback discriminatory pol- continue to do it. icies, provide greater reciprocity and undergo economic reforms. Many of the other speakers at the Hong Kong conference were just as blunt and critical of both Washington and Bei- jing. It got me thinking about how such forums were essential William Foreman to the AmCham ethos and tradition. It’s part of our mission President, to help maintain a robust marketplace of ideas where people American Chamber of Commerce in Taipei

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10 presidents view.indd 7 2019/10/4 上午12:32 T A I W A N B R I E F S

— BY JEREMY OLIVIER —

MACROECONOMICS

OIL PRICES ARE UP, AND SO ARE EXPORTS Fuel prices have been rising in Taiwan in recent months, a result of fluc- tuations in global crude prices brought on by tensions in the Middle East. The latest hikes are tied to the drone strikes on Saudi Aramco facilities that took place in mid-September. Gasoline prices in Taiwan rose NT$0.5 and diesel prices NT$0.9. August was a positive month for export-oriented businesses. Total exports increased year-on-year by 2.6%, includ- Just weeks before the Solomon Islands ended diplomatic relations with Taiwan, ing a 22.8% jump in exports to the U.S. its foreign minister, Jeremiah Manele, visited Taipei and called on President Tsai The marginal 1% increase in exports to Ing-wen. PHOTO: OFFICE OF THE PREDIDENT China ended a nine-month decline from 2018 levels in shipments to that market. steepest drop at 26.2% from August the in September predicted that jobs will Total imports for the month decreased previous year. Other industries heav- increase by 36,400 in the final quarter. by 2.7% from August 2018. For the first ily impacted include ICT, whose export MOL cited a growth in job vacancies eight months of this year, Taiwan regis- orders fell year-on-year by 9.7%, and arising from the resignation or retirement tered a US$29.5 billion surplus, down petrochemicals, which experienced a of current employees and the return of 9.2% from the same period last year. 19.2% decline from August 2018. Taiwanese companies to the island, and Meanwhile, export orders fell again The U.S.-China trade war has also noted that Q4 is traditionally the peak in August, continuing a 10-month trend. affected Taiwan’s output, as manufac- season for tech products in Taiwan. The month-on-month decrease – 2.5% turing in August underwent its fourth The Ministry of Economic Affairs when adjusted for inflation – is linked to month of contraction. The Purchasing reported that retail trade sales for ongoing trade tensions between the U.S. Manager’s Index (PMI) compiled by the August increased 4.5% year-on-year to and China, which have slowed demand Chung-Hua Institution for Economic reach NT$308.8 billion, while food and and created global economic uncertainty. Research (CIER) saw a slight increase beverage service sales jumped 5.7% from The machinery industry experienced the of 0.2 points, but remained below the the August 2018 level. At the same time, 50-point threshold that is considered to wholesale trade sales saw a 5.7% decline TAIWAN STOCK EXCHANGE PERFORMANCE indicate growth. CIER’s President, Chen year-on-year. Shi-kuan, noted that as long as higher THE LINE SHOWS CHANGES IN TRADE VALUE AND THE SHADED AREA CHANGES IN THE TAIEX INDEX. U.S. tariffs on goods manufactured INTERNATIONAL POINTS NT$ BILLION in China remain in place, Taiwanese 13000 225000 exporters who maintain operations in SOLOMON ISLANDS, KIRIBATI 12000 200000 China will continue to be affected. CUT TIES WITH TAIWAN 11000 175000 The Directorate General of Budget, After months of uncertainty regard- 10000 150000 9000 125000 Accounting and Statistics (DGBAS) ing whether Taiwan would lose yet 8000 100000 reported a .07 percentage point increase another ally to China, the government 7000 75000 in the jobless rate for August, bring- of the Solomon Islands on September 16 6000 50000 ing unemployment to 3.89%. DGBAS voted to switch diplomatic recognition 5000 25000 attributed the increase to the influx of to the PRC, ending its 36-year formal 4000 0 new graduates entering the job market. relationship with Taiwan. Its decision However, there is hope for the new job- followed statements made by Taiwan’s

DATA SOURCE: TWSE seekers: the Ministry of Labor (MOL) Ministry of Foreign Affairs and warn-

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ings from U.S. officials urging the Pacific President Trump take regarding national summer also called on Premier Su Tseng- island nation not to be lured by Beijing’s defense. While Trump generally prefers chang, Foreign Minister Joseph Wu, and economic promises. striking deals with both allies and adver- Minister without Portfolio and Chief Just days after the Solomon Islands saries of the U.S., Bolton is regarded as Trade Negotiator John Deng. vote on September 20, another of a hawk. The event that eventually led Taiwan’s Pacific island allies, Kiribati, to his resignation was Trump’s later- DOMESTIC decided to follow suit and switch recog- aborted plan to invite the Taliban to nition to the PRC. Camp David for negotiations, which TERRY GOU LEAVES KMT, Upon learning of each government’s Bolton had firmly opposed. WILL NOT RUN IN 2020 decision, Taiwan’s foreign minister, Bolton will be replaced by Robert Former Foxconn Chairman Terry Joseph Wu, pre-emptively announced the O’Brien, a lawyer with a history of roles Gou on September 12 resigned from his immediate severing of formal ties and in the U.S. government, including as a honorary position in the Kuomintang closing of Taiwan’s embassies in the two representative to the UN during Bolton’s (KMT), citing the party’s “culture of countries. Funding originally reserved tenure there. O’Brien is considered to be reactionary politics and backroom horse- for the Solomon Islands and Kiribati closer in line with establishment conser- trading” as influencing his decision. His will now be reallocated to Taiwan’s four vatives than Bolton on foreign policy departure was criticized by many in the remaining Pacific allies. issues, but is also a vocal supporter KMT, who argued that he broke the Taiwan has lost seven diplomatic of Taiwan. In a 2016 editorial in The promises he made to the party when he partners since Tsai Ing-wen took office National Interest printed shortly after took his membership oath. in 2016, leaving it with formal recogni- President Tsai Ing-wen’s inauguration, Despite widespread speculation tion from only 15 countries. Observers O’Brien argued that “proponents of free- that he would run for president as an have said that such losses are part of a dom and self-determination from outside independent candidate following his strategy by China to increase economic, of Taiwan must shine a spotlight on resignation from the KMT, Gou on military, and political pressure on the ROC in order to rally international September 17 announced that he would Taiwan, particularly in the run-up to the support for its maturing democracy.” not enter the presidential race, but 2020 national elections. would continue to be involved in politi- In a show of solidarity with Taiwan, PRESIDENT TSAI cal affairs. the U.S. Department of State, as well MEETS WITH AMCHAM as a number of American politicians, President Tsai Ing-wen on September publicly condemned the moves by the 5 received a delegation from AmCham Solomon Islands and Kiribati. Senator Taipei led by Chairman Leo Seewald. Marco Rubio has begun seeking certain During the meeting, the Chamber retributive measures, including cutting briefed the president on its 2019 CEO U.S. financial assistance to the Solo- Mission to Washington, D.C. Delega- mon Islands and restricting the country’s tion members outlined the mission’s key access to U.S. dollars. objectives of helping to lay the ground- work for FTA negotiations between TRUMP NATIONAL SECURITY the U.S. and Taiwan, encouraging early ADVISOR REPLACED resumption of the bilateral TIFA process, President Trump on September 10 and urging the U.S. to send high-level announced over Twitter his firing of officials to Taiwan more frequently. John Bolton, the third national security Tsai congratulated the Chamber on advisor to serve in the Trump administra- its successful mission and emphasized tion. Bolton, who had served as the U.S. AmCham’s important role in facilitat- ambassador to the United Nations during ing and encouraging strong economic the George W. Bush administration, is ties between Taiwan and the U.S. She generally seen as favoring a stronger rela- concluded by signaling her desire for tionship between the U.S. and Taiwan. Taiwan and the U.S. to proceed with Bolton’s departure from the National signing a bilateral trade agreement in the Terry Gou surprised many political pundits by announcing that he will Security Council was unsurprising for near future. not be a candidate for president in the January elections. many, given the disparate stances he and Similar AmCham delegations in late PHOTO: CNA

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EX-VP ANNETTE LU ECONOMIC INDICATORS ENTERS THE RACE US$ billion US$ billion The night before Gou’s announce- Current Account Balance (Q2 2019)p 17.56 17.73 ment, former Vice President Annette Lu Foreign Trade Balance (Jan.-Aug.) 29.5 32.5 announced that she will run for presi- New Export Orders (Aug.) 40.05 43.7 dent in 2020. She accepted the support Foreign Exchange Reserves (end Aug.) 468 460 of the Formosa Alliance, a pro-inde- pendence political coalition founded by Unemployment (July) 3.82% 3.81% Formosa Television Chairman Kuo Pei- Discount Rate (Sept.) 1.375% 1.375% hung in 2018. However, as she is not Economic Growth Rate Q2 2019p 2.4% 3.29% officially a member of that party, she and Annual Change in Industrial Output (July)p 3.03% 4.86% her running mate, Peng Pai-hsien, were Annual Change in Industrial Output (Jan.-July)p -1.66% required to register as independents. Lu, Annual Change in Consumer Price Index (July) 0.4% 1.76% who served as vice president during the Annual Change in Consumer Price Index (Jan.-July) 0.54% Chen Shui-bian administration from P=PRELIMINARY SOURCES: MOEA, DGBAS, CBC, BOFT 2000 to 2008, became well-known in Taiwan for her pro-democracy activism against the country’s former authoritar- NEW DEVELOPMENTS August 19 after he entered China from ian regime. IN CORRUPTION CASES Hong Kong. Although authorities in Two corruption cases involving Shenzhen initially told Lee’s family that TSAI DEFENDS DISSERTATION Taiwanese politicians moved ahead they had no record of him entering the AGAINST SKEPTICS in September. New Taipei City Coun- mainland, China’s Taiwan Affairs Office The legitimacy of President Tsai’s cilor Kao Min-hui of the Democratic on September 11 revealed that Lee had doctoral dissertation from the London Progressive Party (DPP) was detained on been detained and was under investi- School of Economics and Political September 8 in connection with a judicial gation for activities that “endangered Science (LSE) has been called into ques- probe into the alleged theft of govern- national security.” tion by several public personalities ment funds intended for office assistant Lee is a volunteer activity organizer in the past month. Among the skep- salaries. Kao, who is currently serv- in Fangliao. He was originally scheduled tics are political talk show host Dennis ing her sixth term as city councilor, has to travel to Indonesia for a conference Peng, National Taiwan University law denied accusations that she forged docu- following his visit to Hong Kong, but professor emeritus Ho De-fen, and ments and used various bank accounts to Fangliao Mayor Chen Ya-lin told media University of North Carolina at Char- skim the funds for personal gain. that he never arrived. Some have specu- lotte Belk College of Business professor On the same day, the former mayor lated that Lee’s disappearance could be Hwan C. Lin. All three have made of Taitung County’s Dawu Town- connected to his support for the anti- various unsubstantiated claims about ship, Chao Hung-han, was sentenced to government protests that have been Tsai’s educational background, particu- three years and seven months in prison taking place in Hong Kong. larly with regard to her completion and after being convicted of receiving NT$2 Tsai Meng-chun, the spokesperson submission of the dissertation and the million in kickbacks from contractors for the Straits Exchange Foundation veracity of her doctoral diploma. during his time in office. His activity was (SEF), Taiwan’s semi-official Cross-Strait In response, both the Presidential found to have violated the Anti-Corrup- business organization, said that Lee is Office and the LSE have released docu- tion Act, and his conviction concluded the 67th Taiwanese person to go missing ments proving that her diploma and an investigation that was launched in in China since Tsai Ing-wen took office dissertation are authentic and that the August 2017. in 2016. SEF attempted unsuccessfully to completed dissertation was submit- contact its Chinese counterpart organiza- ted in 1984 when Tsai graduated. Tsai CROSS-STRAIT tion, the Association of Relations Across will also make her original disserta- the Taiwan Strait (ARATS), several times tion publicly available at the National TAIWANESE MAN since Lee’s disappearance. Central Library. The Presidential Office DETAINED IN CHINA on September 4 filed a complaint against Lee Meng-chu, a native of Fangliao HK ACTIVIST JOSHUA Ho and Lin at the Taipei District Prose- Township in Kaohsiung County, was WONGVISITS TAIWAN cutors Office. reported missing by family members on Student activist Joshua Wong, secre-

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tary-general of the Hong Kong pro- chang (Matsu). Magistrates from the NT$592 billion, far surpassing MOEA’s democracy party Demosistō, arrived in three counties, which rely heavily on original goal. Another 20 companies are Taiwan on September 3 to meet with tourism from China, visited Beijing on slated to return in the near future. government representatives and politi- August 12 to persuade the government cians. The purpose of Wong’s visit was to reopen travel by individual tourists to TAIWAN AND U.S. to update his hosts on the movement for their islands. The parties negotiated for INK AGRICULTURAL DEAL greater democracy in Hong Kong, gain nearly a month, after which China agreed The 2019 Taiwan Agricultural insight on what kind of humanitarian to allow applications for travelers from Trade Goodwill Mission, a delegation assistance Taiwan’s leaders are willing 20 cities across the provinces of Fujian, of Taiwanese agricultural importers, and able to lend to the protesters, and to Zhejiang, Guangdong, and Jiangxi. met with U.S. representatives in Wash- rally support among Taiwanese for Hong ington, D.C. in mid-September, where Kong’s cause. BUSINESS they signed a deal to purchase US$3.7 After his Taiwan visit, Wong trav- billion in corn, soybeans, grains, and eled Germany and the U.S. on similar CONSTRUCTION LOANS beef from farmers across the U.S. The missions. On September 17, he and HIT SEVEN-YEAR HIGH Taiwanese delegation then embarked on Denise Ho, a popular Cantonese pop Taiwan’s Central Bank on September a week-long visit to several states to sign singer who has been a vocal proponent 25 reported that the balance of construc- individual partnership agreements. of the ongoing protests, testified before tion loans in August reached NT$1.9 Taiwan is the eighth largest importer the Congressional-Executive Commission trillion, up NT$20.5 billion from July, of agricultural goods from the U.S., but on China (CECC) in Washington, D.C. for a year-on-year increase of 11.4%. still sits far behind China, the U.S.’s top to push for the passing of a bill aimed at The bank credits the spike in loans to the market for farm goods, in terms of import supporting democracy and human rights return from China of numerous Taiwan- volume. Given the decrease in trade in Hong Kong. ese businesspeople who are now looking between China and the U.S. brought on to open new factories and offices in by the continuing trade war, the new deal CHINA ADJUSTS Taiwan. with Taiwan is a welcome development TRAVEL BAN POLICY MOEA in recent months has intro- for many U.S. farmers who have been Nearly two months after Beijing’s duced a slew of investment incentives affected by the change in trade patterns. decision to restrict individual travel to Taiwanese businesspeople forced to Taiwan, the county government of to relocate their operations as a result LAMIGO MONKEYS the offshore island group of Kinmen of U.S.-China trade tensions. So far, SOLD TO RAKUTEN announced on September 16 that China 140 companies have returned all or Taiwanese professional baseball team planned to lift the ban on its citizens part of their operations to Taiwan. the Lamigo Monkeys has been sold traveling to Kinmen, Penghu, and Lien- The combined investment has totaled by its previous owners, domestic shoe and apparel company La New, to the Japanese e-commerce giant Rakuten. TAIWAN'S JAN. - AUG. 2019 TRADE FIGURES (YEAR-ON-YEAR COMPARISON) Rakuten’s purchase of the team is part of a global strategy to bring attention to /China apan ASEA TOTA its brand, which has also included part- nering with a popular Spanish soccer 90.4 84.2 team and with the NBA’s Golden State 38.8 35.8 37.4 35.6 220.4

215.4 Warriors. While a significant 6 million 29.5 27.9 22.7 22.4 15.2 187.9 15.3 185.9 Taiwanese use Rakuten’s online services, overseas sales account for only a small 2019 2018 2019 2018 2019 2018 portion of the company’s total revenue. .S.A Europe Although the Monkeys are Taiwan’s

30.2 most popular baseball team, the team has 25.5 24.1 22.9 22.3 22.9 21 20.1 been losing money, something the new

2019 2018 2019 2018 2019 2018 owners hope to reverse. They have prom- ised to retain all current administrative T: S Billion Exports mports SO RCE: BOFT/MOEA staff and keep the team in Taoyuan, but plan to change the team’s name.

TAIWAN BUSINESS TOPICS • OCTOBER 2019 11

10_Briefs.indd 11 2019/10/4 上午12:34 AMCHAM EVENT

President Bill Foreman (center) leads a toast to Attendees enjoyed the food, drink, and chance to network. AmCham's 68 years of success.

Happy Anniversary, AmCham

articipants in AmCham Taipei’s cocktail reception marking the 68th anniversary P of the Chamber’s birth in 1951 enjoyed 68th a spectacular view from The Penthouse on the 16th ﬂoor of the eslite Hotel, a delicious selection of canapés, freeﬂowing wine and Glenlivet Single Malt Scotch, raffle prizes, and stimu- lating conversation. The event on September 19 was sponsored by American Airlines. Chamber President Bill Foreman welcomed the members and guests, and a slide show The AmCham Taipei anniversary party is always a great occasion for Chamber drew attention to the Chamber’s signature members and guests to greet old friends and make new ones. events and major activities over recent years. AmCham Taipei had five member companies at its founding and has since grown to a membership of more than 500 business organizations.

12 TAIWAN BUSINESS TOPICS • OCTOBER 2019

Anniversary.indd 12 2019/10/4 上午12:41 ISSUES New Era for Cosmetics Regulation

The revised cosmetics law shows promise, but implementation issues remain.

f the eight issues raised the previous year that AmCham Taipei’s 2019 Taiwan White Paper deemed to have been O fully resolved, half related to a single industry – cosmetics: • Clarifying the definition of cosmetics under the law to avoid creating technical barriers to trade. • Clearly defining the workings of a prospective requirement for “corrective advertising” following findings of serious cases of misleading ads. 0 • Ensuring a smooth transition for the regulation of toothpaste and mouthwash as cosmetics for the first time. • Ensuring that any restriction on the use of ingredients is based on scientific evidence and adopted in a transparent manner. Most of the progress results from the May 2018 passage of an amended Cosmetics Hygiene and Safety Act, the first portions of which came into effect from July this year. Although it regards the revised law as a generally positive measure, the Chamber’s Cosmetics Committee continues to draw the government’s attention to several areas needing consideration. 05 An example is the new law’s requirement that product information files (PIFs) include safety dossiers, which are used to determine whether products are safe to be sold. “Assessment of product safety is complicated because it is based on a number of different elements, including the raw materials, level and frequency of use, formulation composition, type of product, age of the consumer, skin type, appli- cation area, and exposure areas,” the Committee noted in its 2019 0 White Paper submission. “Because of that complexity, plus the wide variety of cosmetics products, it takes a high degree of professional knowledge and skill to be able to judge whether a product is safe. There is no simple rule that can be applied in all cases.” “A company like Procter & Gamble has sufficient resources like doctors and toxicologists who can conduct such complicated assess- ments,” says Abigail Lin, in charge of Global Product Stewardship for P&G Taiwan. “But for small distributors, they’ll have a difficult time getting such confidential product information from the original companies and manufacturers.” The Committee therefore urges the Taiwan Food and Drug Administration (TFDA) to build up a professional safety-dossier review capability by referencing international best practices for conducting post-market audits. In addition, the Committee is concerned about certain Taiwan- unique regulations under the new law. One such provision requires that companies’ Safety Assessors (SA) – those responsible for signing off on PIFs – complete a specialized training course with annual retraining. There is no such stipulation in international best practice. The Committee suggests that English-language training courses be

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developed and offered online so that foreign SAs can achieve certification. Otherwise, products made overseas and certified by foreign SAs could face serious barriers when imported into Taiwan. A final issue involves Good Manufacturing Practice (GMP) certification. To achieve GMP status, the enforcement rules for the new law require that packaging and labeling functions be carried out at the same site as production. For most imported cosmetics, however, Chinese-language labeling is usually added in Taiwan in a simple operation. Since the Chinese labeling process does not impact the quality, sanitation, or safety levels of the cosmetics, the Committee argues that it “makes sense to exclude such operations from the GMP standard.” — By Anna Yang

Regulating Dispatch Labor

The aim is to protect workers’ rights without disrupting economic growth.

mendments to the Labor Standards Law passed in April this year included long-discussed provisions to further A protect Taiwan’s approximately 150,000 dispatch workers. For the most part, the changes were also welcomed by employers, who see the need for a stable dispatch labor system. Hiring dispatch workers has become an increasingly common practice in Taiwan. Particularly in the fast-paced ICT sector, compa- 50000 nies need to be able to hire specialized labor quickly and flexibly to carry out short-term projects, meet urgent client requests, and cope with other situations where standard hiring practices would prevent a company from pursuing business opportunities. One of the two key provisions in the new amendments is to stipulate that contracts entered into between dispatch companies and dispatch workers must be for an indefinite duration rather than fixed-term. The rationale was that fixed terms may allow dispatch companies to dodge benefits like severance payments upon termina- tion of employment services. A second major change specified that employees who do not receive payment due to them from the dispatch company may seek compensation from the client company they were contracted to. In AmCham Taipei’s 2019 Taiwan White Paper published in June, the Human Resources Committee suggested some additional steps to strengthen the system. It recommended adoption of a special insurance mechanism for dispatched employees in addition to the current unemployment benefits. And to raise industry standards, the Committee proposed creation of a licensing system for dispatch agencies to ensure that they are qualified to manage dispatched workers. At the same time, industry has had several concerns related

14 TAIWAN BUSINESS TOPICS • OCTOBER 2019

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to dispatch labor. The main worry is whether the government may impose a ceiling on the number of dispatched workers that a company may be allowed to hire. If the cap is set too low, small companies with limited manpower and budget, including startups, will be unable to take advantage of the benefits of dispatched labor. A rule that is too restrictive would also encourage larger companies 0 to increase the use of automation instead of hiring more workers. The HR Committee proposes that a reasonable cap would be at least 20% of a company’s total workforce, reflecting the current reality of the business climate. Another concern involves the law’s stipulation that the client company may not participate in the selection of the workers to be sent to them. For companies that rely on dispatch labor for help with specific projects, which may be short-term and specialized in nature, interviewing the candidates is an important step in ensuring that the workers are the right fit. — By Anna Yang

Goodbye Saturday Securities Trading or years, the securities and futures markets in Taiwan were the world’s only major bourses with Saturday trading – F and not every Saturday at that. Several times a year when a public holiday falls on a Tuesday or Thursday, workers and students in Taiwan receive an additional day off (on that Monday or Friday, respectively) to give them the benefit of a four-day weekend. But in return the time has to be made up on a specified Saturday. The irregularity of occasional Saturday trading immensely complicated the settlement process, especially for international investors relying mainly on automated systems. Besides creating additional costs, the disruptions in normal procedures caused by Saturday trading also “involved a large potential default risk,” says C.P. Liu, executive vice president at Fubon Financial and a co-chair of AmCham Taipei’s Capital Markets Committee. After raising the issue repeatedly in the Chamber’s annual Taiwan White Paper – most recently in 2018 – the Committee was gratified when the authorities agreed to cancel trading on the working Saturdays, starting with this year. Another Committee White Paper proposal from 2018 – to lift the requirement that offshore analysts must be chaperoned by locally licensed securities personnel when visiting professional investors in Taiwan – was also accepted. Securities firms considered the chaperoning requirement to be an unwarranted burden on their staff members, and particularly unnecessary given the knowledge and sophistication of Taiwan’s professional investors. As the Committee noted in its 2019 White Paper chapter, the two positive responses from the government “send the encouraging message to the industry that the regulators recognize the importance of enhancing the competitiveness of Taiwan’s capital markets by aligning its practices with international standards.” — By Niralee Shah

TAIWAN BUSINESS TOPICS • OCTOBER 2019 15

10 issues.indd 15 2019/10/4 上午12:43

COVER STORY

Fewer Chinese Tourists: What will be the Impact? 來台陸客萎縮衝擊知多少？

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TOURISM

Beijing’s latest weaponization of tourism illustrates the risk of relying on the mercurial China market

北京以觀光為武器的最新行動，足以說明依賴反覆無常的中國市場具有風險。

aiwan’s hospitality sector heralded a boom in hotel construc- could contract this year tion that has made Taiwan more T following Beijing’s decision attractive to all visitors. More to sharply curtail the flow of visitors importantly, Taiwan woke up to its BY MATTHEW FULCO from China, reversing many years of own tourism potential. The Chinese steady inbound tourism growth. – neighbors sharing a common Over the past decade or so, language and cultural heritage with Chinese tourism has benefited Taiwan – were just the beginning. Taiwan considerably. Before the In recent years, Taiwan has seen opening of the market to Chinese a substantial rise in arrivals from visitors in 2008, Taiwan was an South Korea, Hong Kong, Southeast obscure tourist destination except Asia, India, and the United States. for the Japanese, who feel a special Because of their sheer numbers, connection to the island because of the Chinese still account for the their 50-year colonial rule (1895- largest share of Taiwan’s tour- 1945). ism market – 2.7 million visitors The arrival of the Chinese or more than 24% of the total in

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2018. That’s a major risk given Beijing’s Hotel occupancy rates could fall to a Harvey Thompson, general manager tendency to use tourism policy for politi- 10-year low of 59%, down six percent- of the W Taipei, says he expects the lack cal purposes. On July 31, Beijing abruptly age points from the same period a year of Chinese visitors to adversely affect the prohibited its citizens from going to earlier, according to CBRE’s analy- hotel’s business during the 2020 Chinese Taiwan as independent travelers, citing sis. Since Chinese tourists began visiting New Year holiday. “For us, that’s a big “the current relations between the two Taiwan en masse, hotel occupancy rates impact – China is a key market that sides of the Taiwan Strait.” have rarely dipped below 60%. usually ensures we’re full throughout the The ban reversed an eight-year-long Hoteliers are “starting to feel the holiday,” he says. Chinese visitors account period of opening that market. Group impact,” says Randy Zupanski, general for 20% of the W’s overall business. tours continue to be permitted on a manager of Shangri-La’s Far Eastern Thompson notes that Beijing issued reduced basis, but they could be nixed in Plaza Hotel in Taipei, where Chinese the ban at a time when Chinese tourism the lead-up to Taiwan’s January presiden- visitors have accounted for about 15% to Taiwan had been experiencing strong tial election. of business. “As the visas run out, and growth. Chinese FITs (industry lingo for China has been upset with Taiwan there is an inability to get new visas, the “free independent travelers” rose 24% in President Tsai Ing-wen’s refusal to recog- impact will become more pronounced,” the first half of the year to 630,000. nize the “1992 consensus,” a vague he notes. The impact of the drop in Chinese oral agreement in which Beijing and Zupanski foresees a knock-on impact visitors will be felt most in Taipei, says Taipei acknowledge that Taiwan and the from the ban that will affect the MICE Peter Lin, chief executive officer of Chinese mainland both belong to a single (meetings, incentives, conferences, and Taipei-based travel agency Topology entity – “One China.” Tsai’s predecessor, exhibitions) market – even though Beijing Travel. He reckons that 70% of Chinese Ma Ying-jeou, accepted the 1992 consen- has not banned its citizens from visit- FITs stay in Taipei. sus as a precondition for deepening ties ing Taiwan on business visas. “We’ve In addition, three- and four-star with Beijing, though reserving the right already had some cancellations,” he says. hotels – which Chinese FITs tend to for Taiwan to have its own interpretation “There’s an image issue for business favor – can be expected to take the hard- of the meaning of One China. groups when the Chinese government is est hit, says Ping Lee, CBRE’s head of The loss of the Chinese market will discouraging travel to Taiwan.” research in Taiwan. The key market batter Taiwan’s hospitality sector. CBRE, Since Chinese staff are inevitably segment of five-star hotels is more evenly a property consultancy, estimates that a large part of organizations’ Greater balanced, she says. Chinese tourist arrivals could plum- China operations that include Taiwan met by 530,000 through the end of this and Hong Kong, Taiwan will have diffi- Political calculations year, slashing tourism revenue by NT$20 culty hosting MICE events for regional billion (US$632 million) from the 2018 attendees as long as the ban is in place. The sudden cutoff in Chinese tour- level. In a worst-case scenario, there With Hong Kong enveloped in political ists to Taiwan took industry observ- could be 640,000 fewer Chinese arrivals, turmoil, Shanghai and Beijing stand to ers by surprise, as no single event acted down 51% from last year. win more of the business. as a catalyst. In contrast, China’s ruling

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Communist Party placed a ban on group with Taiwan are nearly as problem- for travel to Kinmen, Matsu, and Penghu tours a month before Taiwan’s 2016 pres- atic. Beijing’s attempts to pressure Tsai is different from the one for Taiwan, Lee idential election to keep its citizens away have failed to bear fruit. Her approval notes. Permits for Taiwan remain under from Taiwan’s democratic process while rating reached almost 44% in August, embargo. reminding Taiwanese that Beijing could compared to about 34% in May, accord- derail the tourism gravy train at will. ing to a survey conducted by the Taiwan Cultivating resilience Nevertheless, Tsai Ing-wen of the New Constitution Foundation. Democratic Progressive Party (DPP) Still, “by banning FITs, China can In the short term, Taiwan cannot defeated the Chinese Nationalist Party show its ability to influence Taiwan’s easily offset the decline in Chinese visi- (KMT) candidate Eric Chu, who was seen economy, putting pressure on the govern- tors. Attracting international visitors as friendlier by Beijing. ment,” says Topology’s Lin. “But since requires time and money for promotion. This time the stakes are higher for the measures primarily affect the hospi- Visa waivers have been in place for years China. October 1 marks the 70th anni- tality sector, the damage won’t be too for the biggest tourism markets besides versary of the founding of the People’s serious.” China, including Japan, South Korea, Republic. In the decade since its 60th Ringo Lee, head of the Travel Agent Hong Kong, Singapore, Malaysia, and anniversary, the PRC has become the Association of the Republic of China, the United States. world’s No. 2 economy, surpassing Japan, says “the mainland’s method will make One option would be to permanently while steadily increasing its military and Taiwanese people angry – it’s not the way waive tourist visas for all visitors from technological prowess. to win their support.” Thailand, the Philippines, Vietnam, Indo- In 2019, however, China’s ascen- Recently, Beijing showed some flexi- nesia, and India. In the long run, that dancy has slowed. The trade war with bility by lifting the ban on FITs traveling would certainly boost arrivals from those the United States and a long “delever- to Taiwan’s offshore islands of Penghu, countries, which are populous, rela- aging campaign” drove the announced Matsu, and Kinmen. Few Chinese visit tively close to Taiwan, and increasingly economic growth rate in the January- Penghu or Matsu, but Kinmen is heav- important economic partners. At present, March period to just 6.2%, its lowest ily dependent on them. The fact that however, those nations are not wealthy, point in 27 years. a sustained drop-off in Chinese visi- and only a limited number of their citi- Making matters worse for China, tors could devastate Kinmen’s economy zens can afford international travel. political turmoil has erupted in Hong factored into Beijing’s decision to lift the The Taiwan government has targeted Kong. Violent street protests have ban, Lee says. Southeast Asia for increased tourism engulfed the semi-autonomous territory “The mainland wouldn’t want to hurt because of its large Chinese diaspora since June, fueled by the public’s discon- Kinmen in that way, especially as the population, making for obvious cultural tent with years of ham-fisted admin- Kinmen local government has historically and linguistic links with Taiwan, says istration under Beijing’s chosen chief been friendly to Beijing,” he says. Topology Travel’s Lin. His company executives. There’s also a technical loophole in caters to the English-speaking over- From China’s perspective, relations that the permit China issues to its citizens seas Chinese market, including those in

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ASEAN countries. Part of that strategy is to encourage more calls by cruise ships at Taiwanese ports (see the accompanying story in this section for more details). Ramping up domestic tourism is another option. To that end, the Tour- ism Bureau in August unveiled a fall and winter subsidy program forecast to generate almost NT$26 billion in revenue for the tourism industry. The program stipu- lates that individual travelers can receive a one-time subsidy of NT$1,000 per hotel room, but only between Sunday and Friday. Those who travel to Taiwan’s offshore islands can receive the subsidy twice, and it is available on any day of the week. The Tourism Bureau will also offer a one-time subsidy of NT$350 for children to visit an amusement park. The amusement park operator will cover the difference, enabling the children to visit free of charge. Additional subsidies are being made available for tour groups. Under the program, tour groups that visit specific towns recommended by the government can receive NT$500 per person per day. However, the maximum total subsidy for a given tour group is NT$30,000 in most cases. The maximum is raised to NT$50,000 if the tour group consists of travelers aged 60 or older, stays in star- Night markets such as Taipei's Shilin Night Market are among the most popular attractions for both foreign and domestic tourists. rated hotels, or tours farms or factories

500 0 5 0 000 00 0 50

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open to the public. Tour groups visiting overlap in effort is,” he says. Rather Taiwan’s offshore islands can receive up than focusing on specific facilities or to NT$70,000. programs, “we should sell Taiwan as the While the subsidy program is certain destination first.” to benefit local tourism, long-term solu- As for the Chinese FIT ban, analysts tions will be needed to lessen Taiwan’s say Beijing may lift it after the January heavy dependence on the mercurial presidential election, but probably not China market. any earlier. In the meantime, says CBRE’s In an interview with Taiwan Business Lee, the local hospitality industry is grad- TOPICS, Joe Y. Chou, director general ually growing accustomed to volatility in of the Tourism Bureau, said that Taiwan the Chinese tourist market. “welcomes Chinese tourists” but is none- “Taiwanese are becoming more resil- theless diversifying its tourism source ient,” she says. When doing business markets. He noted that Taiwan has with China, “they are learning that this recently opened new information centers type of thing happens.” in Russia, Australia, Vietnam, Thai- Overall, the impact on Taiwan’s econ- land, Indonesia, New Zealand, and India. omy should be manageable, economists The Bureau has also opened new full- say. Darson Chiu, deputy director of the scale offices in Busan, South Korea and Taiwan Institute of Economic Research London, England. (TIER), reckons that the Chinese FIT Chou pointed to a recent uptick in ban will cost the tourism sector some visitors from Japan and Korea. Japanese NT$35 billion. Other things being equal, arrivals rose 10% to a record 200,000 for that could cleave 0.2% off Taiwan's 50 the month of August. South Korean arriv- overall GDP, estimated at NT$1.73 tril- als increased by 30%. lion. “That indeed isn’t very signifi- 0 Hoteliers urge the government to cant given the extremely strong growth work more closely with industry. At in fixed capital formation this year due present, the Tourism Bureau and hotels to the trade spat between the U.S. and promote tourism independently, says China,” Chiu says. Shangri-La’s Zupanski. He suggests that The W’s Thompson sees one upside to a board be established that includes the way the FIT ban was implemented. representatives from the government and “At least they gave us a heads-up,” he hospitality industry. says. “It happened during our budget “We need to find out where the planning time for next year.”

aiwan’s northeastern port city of Keelung was once dubiously Taiwan’s Cruise Industry T known for two unflattering distinctions: the country’s highest suicide is Shipshape rate and weather even gloomier than Taipei’s. A dozen years ago it seemed like a place that time had left behind: aging, dilapidated, eerily quiet. Aside from the The burgeoning cruise market has raised Taiwan’s profile in main attraction of fresh seafood, the the travel sector and revitalized the port of Keelung. city offered little to visitors. Meanwhile, Taipei Port’s cargo throughput overtook Keelung’s in 2009, less than a decade after the former opened. Now Keelung is awakening from a BY MATTHEW FULCO long slumber and the hum of activity is evident. The city might have drifted further into obscurity if not for the ascen- dancy of Taiwan’s cruise sector, now the No. 2 source market in Asia behind China.

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Star Cruises' Superstar Libra at the Port of Keelung (front), with Princess Cruises' Sapphire Princess right behind. PHOTO: WIKIPEDIA

Keelung Port has been reborn as home roughly NT$5 billion (US$161 million) in local goods last year, Chen says, about harbor for international cruise liners. to the Taiwan economy. “Cruise ships half of which were fruits, vegetables and Massive cruise ships carrying thousands generate a lot more local economic activ- rice. The company expects to surpass that of passengers regularly drop anchor in ity than cargo ships,” says Peter Chen, figure this year. Keelung, usually on journeys to and from regional director of Princess Cruises/ Situated at the nexus of Northeast and Japan. A total of 940,000 international Cunard Line Taiwan. “There are 1,000 to Southeast Asia, Taiwan is well positioned cruise passengers visited Keelung Port in 3,000 passengers instead of 20 or 30 crew to capitalize on the regional cruise boom. 2018, up from 400,000 in 2013, accord- members.” The number of Asian cruise passengers ing to government data. Feeding everyone on a cruise ship grew 4.6% in 2018 to reach a record Taiwan International Port Corp., requires a large supply of provisions, high of 4.24 million people, according to which operates the Port of Keelung, esti- much of which Taiwan (with its strong the Cruise Lines International Associa- mates that up to one million passengers agricultural sector) can provide. Princess tion. Taiwan, along with Hong Kong and may visit Keelung this year, contributing Cruises purchased a record US$20 million the Chinese mainland, is a destination for

台成長中的郵輪市場提升了台灣在旅遊界的能見度，也幫助基隆改頭換面 00 00 5000 000000 00 0 000 00

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more than half of all cruise passengers in with options for visiting the Land of the ground. Weather conditions factor heav- the region. Rising Sun. Okinawa and Yokohama ily into when they open and the duration China remains the top source market are among the most common destina- of the bloom period. by far, at 55.8%. Yet it is impressive that tions for Taiwanese cruise passengers, but Now that Taiwan has developed a Taiwan, with a population 1/60 the size ships also stop off in Osaka, Kobe, Naga- substantial cruise ship market, the next of China’s, is second with 9.3% (400,000 saki, Fukuoka, Kanazawa, and Shizuoka. step is to deepen the industry’s roots passengers). That’s ahead of Singapore, Some cruises departing from Keelung here. That requires establishing a second Japan, Hong Kong, India, and Malaysia. even travel to Hokkaido, Japan’s remote home port besides Keelung. Kaohsiung “Taiwanese tourists are maturing – northernmost island. Port, Taiwan’s largest commercial harbor they’re looking for new tourism prod- and the world’s twelfth largest container ucts,” says Princess’s Chen, adding that Shopping in Japan port by cargo volume, is the obvious Princess entered the local market in 2013 choice. “Kaohsiung is a major port – it to capitalize on that trend. One of the favorite activities of has definite potential for the purposes of Indeed, cruises are enjoying some- Taiwanese tourists in Japan is shopping. the cruise industry,” says Joe Y. Chou, thing of a moment in the sun here. Inter- As cruise passengers, they have no limit director-general of the Taiwan Tourism national cruise operators have shrewdly to their luggage weight. “Japanese prod- Bureau. put together packages customized for ucts are extremely popular with Taiwan- Kaohsiung is already getting a taste the local market. The cruises usually ese consumers,” Chen observes. “If some- of the cruise ship business. In July, World embark from Keelung destined for Japan. one wants to load up on Japanese snacks, Dream, a luxury cruise ship operated by The voyages last three to six nights, in or even buy an appliance made in Japan Genting Cruise Lines, sailed to Okinawa contrast to the longer cruises common in [which might exceed the weight limit for three times from Kaohsiung. Together, the North America and Europe. a flight], they can bring it all home on the voyages were expected to earn NT$160 “Taiwanese people have limited cruise ship.” million in tourism revenue, local media annual leave, so they can’t take too many To meet demand in Taiwan for view- reported. consecutive days off,” says Steven Liou, ing cherry blossoms in Japan, cruise lines Genting is reportedly considering president of the Port of Keelung. “But will offer special cruises in the spring of introducing an “island-hopping” domes- they only need a long weekend to take a 2020 that will disembark at numerous tic cruise-ship tour that would leave from cruise to Japan.” Japanese cities. “If you miss the cherry Kaohsiung, stop off in Tainan, and then For reasons of cultural affinity and blossoms in one place, you can try your sail to the outlying Penghu and Matsu geographic proximity, Japan is Taiwan's luck in another,” says Liou, in refer- islands. preferred cruise destination. The local ence to the unpredictability of the bloom However, Kaohsiung faces a number websites of the major international period. Flowers stay open for just four to of obstacles in its bid to become Taiwan’s cruise lines operating in Taiwan are filled ten days before wilting and falling to the second home port. First, the southern

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24 TAIWAN BUSINESS TOPICS • OCTOBER 2019

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city’s geographic location makes it an obvious choice for southbound voyages, but not for those heading north – and most of Taiwan’s cruises are destined for Japan. To visit Japan, Kaohsiung locals would prefer to take the high-speed rail to Taipei – and from there travel 45 minutes to Keelung – rather than embark on a cruise ship from their home city, says Chen of Princess Cruises. “They would rather get to Japan faster than spend an additional night aboard the ship,” he says. Embarking from Kaohsiung makes sense for cruises bound for Southeast Asia, but at present demand for such voyages is limited. After Japan, South Korea – also to the north – is the top destination for Taiwanese cruise passengers. One market that Chen sees as a natural fit for Kaohsiung is China. The city could serve as a destination for Chinese A cruise line promotes its business by advertising in a Taipei MRT station. cruise ship passengers who have selected PHOTO: MATTHEW FULCO flight-cruise packages, he says. Such trips entail flying to a destination, taking a cruise from there and back, and then – in Kaohsiung’s November 2018 mayoral sible for most cruise ships to sail directly flying home. Chinese tourists interested election, the city saw an increase in between China and Taiwan. Given ample in visiting Kaohsiung as part of their Chinese tourist arrivals. Although Beijing cross-Strait flights and the Taiwanese trip wouldn’t mind their cruise taking an recently banned individual Chinese from preference for visiting Japan, demand for additional night to reach Japan or Korea. visiting Taiwan, a Kuomintang victory in that travel segment is limited. But it’s not In the months after the surprise victory the 2020 presidential election would likely now even an option because Taipei and of the Kuomintang’s Han Kuo-yu – result in a lifting of the ban. Beijing cannot agree on which waters are viewed as relatively friendly toward China Political complications make it impos- domestic and which international.

000 5

TAIWAN BUSINESS TOPICS • OCTOBER 2019 25

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TOURISM

Beijing and Taipei both remain experience and says she would be willing ment of tourist sites. After all, if visi- active in the Asia Cruise Coopera- to take another cruise in the future. She tors have seven or 12 hours in Keelung, tion Alliance, whose members include lauds the quality of live entertainment what will they do with their time? Shop- Taiwan, Hong Kong, the Philippines, onboard the ship and the wide array ping, of course, is one possibility, and to Korea, Hainan Island, and Xiamen. of recreational facilities, from the large meet such demand, the city could set up a The Alliance seeks to facilitate visits swimming pool to a mini-golf course. duty-free retail center. by international cruise lines to the six For gambling enthusiasts – and But one can buy duty-free goods destinations as well as to develop Asia’s Taiwan has more than a few of those – anywhere. To Keelung’s credit, the city overall cruise market. the onboard casino is a big attraction, she has focused heavily on strengthening the One issue cruise lines need to watch says, even though she personally didn’t quality of its distinct scenic and historical more closely is customer satisfaction. gamble on this voyage. attractions. The once neglected Heping Research by Taiwan Business TOPICS However, Lin found that certain Island Park – which boasts magnificent has turned up multiple accounts of elements of the experience left much views of Taiwan’s rugged northeast coast Taiwanese passengers criticizing the to be desired, including cramped cabin – has been rejuvenated. It now has new quality of cruises. In April, Taiwan’s space and the disappointing quality of the seawater bathing pools, changing facil- Consumer Foundation received more buffet-style meals. ities, and showers, as well as a visitor than 900 complaints from passengers On the whole, though, prospects look center that sells high-quality locally made who took a cruise to Okinawa. After promising for the cruise business here. souvenirs. the cruise was truncated because of bad The government is intent on developing There are also plans to boost weather conditions, the travel agency that the industry, consumer demand is robust, Keelung’s infrastructure, including arranged the cruise offered to compensate and ample room remains to grow more construction of a convention center, reno- each passenger with NT$500 in cash and specialized market segments, particularly vation of Keelung Port’s western half, and an NT$100 coupon. The passengers, who flight/cruise packages. perhaps even an extension of the MRT had paid anywhere from NT$25,900 to The Port of Keelung recently invested from Nangang, a business hub on Taipei’s NT$60,900 for the planned four-day trip, more than NT$50 million to install an eastern outskirts. The latter project considered the compensation to be far e-gate system, which automates part of would integrate Keelung with the nation’s too low. the immigration control process. That economic and political capital, cementing At the same time, many custom- facility should considerably speed up the its future status. ers are satisfied. Amy Lin, who works movement of passengers in boarding and “The rise of the cruise industry has for a research institute in Taipei, took a disembarking from ships, Port of Keelung been the driving force behind all this cruise to Japan earlier this year with a president Liou says. development,” says Liou. “It’s been a major international cruise line operat- Perhaps even more important than golden opportunity for Keelung to rein- ing in Taiwan. She enjoyed the overall financial incentives is the improve- vent itself.”

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26 TAIWAN BUSINESS TOPICS • OCTOBER 2019

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Fullpage_Subscription_19.indd 27 2019/10/4 上午1:08 瓶裝水中的塑膠微粒

摘要水、土地甚至空氣中的塑膠微粒汙染已成為社會日益關注的問題。除了會對生態系統和人類健康造成不利影響外，最近的研究也發現，許多瓶裝水和其他飲料產品都含有微量塑膠微粒汙染，這也讓許多公司面臨負面宣傳和損害品牌形象的風險。對抗塑膠微粒汙染需徹底了解其來源和途徑，這要從檢測和識別不同類型樣本中的塑膠微粒開始。Thermo Scientific™ Nicolet™ iN10 MX紅外線成像顯微鏡、Thermo Scientific™ DXR2xi Raman 成像顯微鏡、Thermo Scientific™ OMNIC™ Picta™軟體，以及 Thermo Fisher Scientific的聚合物資料庫的結合能提供一套完整的解決方案，並能應付分析上，尺寸分佈相當寬廣(1-5000 Mm)塑膠微粒的挑戰。

塑膠微粒...全球日益關注的話題近年來，隨著監管機構、研究人員和製造商不斷了解環境中廣泛存在的塑膠微粒材料（小於5毫米的合成塑料小顆粒）的來源和途徑，並評估其對生態系統和人類健康的影響，塑膠微粒材料受到了廣泛關注，並開發出各種有效的方法來解決該問題。從衣物上的簡單合成纖維到消費品中的塑膠柔珠等產品，都會隨著時間的流逝而在環境中，尤其是在水生環境中留下殘餘物。從海水中積累的塑膠微粒開始，塑膠微粒正逐漸滲透到淡水、土地甚至空氣中。最近的研究指出，這個問題比許多人擔心的還要更嚴重。總體而言，在接受測試的自來水樣品中有83%已被塑料纖維污染，其中美國的污染率最髙，達94°% ,歐洲的污染率最低，為72°%。紐約州立大學弗雷多尼亞分校的研究指出，接受測試的瓶裝水中有93% 有出現塑膠微粒汙染的跡象，這種污染至少有一些部分是來自包裝和裝瓶過程。在啤酒、蜂蜜、糖和空氣中也有發現塑膠微粒纖維和碎片。1 㨊㜓柷嘼䏭㸓憶 • 䓝壄㰛 • 㰎⋽抨怵㿥♏ • 怵㰎⋽㰒 • ℰ⭟嬿∌ • 棙㖀 • 䟤怵㿥♏ • DXR2xi 桖⾕揈 • 慝嘼䏭⑳ • ⋽⭟嬿∌ • 㵞㰛 • 乽䶔䴇憸 •iN10 MX FTIR 㵯⋽ • 憶⋽Ƌ㕟憶⑳⤎⯶ƌ • 㲀 ⠾ⱋ怵㿥♏ 桖⾕揈 •… • 㳌㼦 •… ㎈㨊怵㿥 ⇭㝷

圖1。顯示塑膠微粒分析典型工作流程的示意圖

Thermo Fisher Scientific 解決方案圖1說明了用於塑膠微粒分析的典型工作流程。預處理後，如有必要，則除去生物材料，使含水樣本能通過過濾器。然後，將乾燥的過濾器直接放在顯微鏡的樣本台以進行顯微分析。 Nicolet iN10 MX FTIR顯微鏡非常適合分析> Mm的塑膠微粒顆粒。圖2展示了一個範例。視覺影像（圖2A）由200多個視訊擷取畫面組成，這些視訊擷取畫面組合成一個覆蓋約1平方公分的合成圖。在約 30分鐘內（約50 Mm 步進和0.1秒/光譜），共收集了約17,500張光譜。圖2B顯示來自過濾器本身和球體的代表性光譜。使用參考標準中的聚乙烯光譜，構建了與該圖中每個光譜相關的關聯圖（圖2D,其中紅色斑點與聚乙烯度相關，而藍色欄位則不相關。Picta軟體的粒子精靈可以自動完成分析。從視訊影像中選擇一個區域後，軟體會識別目標粒子，並繼續為每個粒子產生光譜。然後，在光譜庫中搜尋這些光譜，再對檢查區域中的粒子數量進行分類報告。然後，可透過過濾後的液體量反推資料，以提供顆粒濃度的半定量測量。䋁 ␟ℰ⺍

ἴ何Ƌ⾕䱚ƌ 弌㺼┦ⵓ㘎

㳉㕟Ƌ⅓⇭1ƌ

ἴ何Ƌ⾕䱚ƌ

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偁Ṁ䃖ƏLD ⌠愴Ɲ62.87 ⇭⬷⻶Ɲ 㨊㜓㹽₀ƝPP冇䈮 &$6䷏噆Ɲ ␟ℰ⺍壤怇┭Ɲ+RHFKVW+RVWDOHQ

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䋁榒䱑娖⃣㽸优ᴗ㾭

圖 2: 使用 Nicolet iN10 MX FTIR 顯微鏡進行微塑料分析的範例。(A) 能顯示顆粒在過濾器上的視覺影像；(B) 顆粒和濾紙的光譜；(C) 資料庫搜尋粒子的結果；以及 (D) 與顆粒光譜的相關圖。

針對 <10 μm 的顆粒，DXR2xi Raman 成像顯微鏡可提供強大的解決方案，其空間解析度可達最低 0.5 μm。圖 3 顯示了對從威尼斯潟湖的 Pellestrina 海灘收集的海水樣本的分析。DXR2xi Raman 顯微鏡的軟體從光學影像中識別並定位了氧化鋁過濾器上的幾個顆粒（圖 3A）。然後，僅基於預定義的標準選擇感興趣的區域進行光譜採集，並有效縮短了總分析時間。在光譜採集過程中，即時 MCR（多變量曲線解析度）不僅可對顆粒進行化學鑑定，還可直接觀察不同化學來源的顆粒（圖 3 B）。例如，圖 3A 中的所有三個粒子的大小介於 5 到 10 μm 之間。黃色顆粒經識別為聚丙烯，而灰色顆粒經識別為 PV23 Hoechst Laser 顏料。圖3。使用DXR2xi Raman顯微鏡進行塑膠微粒分析的範例。(A)具有塑膠微粒顆粒的氧化鋁過濾器的視訊影像； (B)具有塑膠微粒顆粒的過濾器的化學影像；(C)黃色顆粒之一與聚丙烯的庫光譜相比的光譜。

結論較大尺寸範圍（1-5000 pm）的塑膠微粒會分析帶來特殊的挑戰。Thermo Fisher Scientific 擁有獨特的市場定位，能提供可解決此挑戰與領先業界的產品組合，包括1.) Nicolet IN10 MX FTIR成像顯微鏡，包含可偵測> 10 pm的顆粒大小的 Picta軟體，以及2.) DXR2xi Raman成像顯微鏡，可偵測直徑> 1 pm的顆粒。Picta和OMNICxi軟體內建的智慧功能可供用於分析存在塑膠微粒的樣本。最後，Nicolet iN10 MX FTIR顯微鏡和DXR2xi Raman 成像顯微鏡能提供我們在供應水中，塑膠微粒分析效率最大化，以及大幅縮短操作人員分析時間。

參考資料 1. https://www.thequardian.com/environment/2017/sep/06/plastic-fibres-found-tap- water-around-world-studv-reveals

如需更多資訊，請瀏覽thermofisher.com/Raman

THE PUSH TO MAKE TAIWAN BILINGUAL

The promotion of English proficiency is designed to increase competitiveness in the international arena.

BY NIRALEE SHAH

o help ensure this country’s con- says NDC Minister Chen Mei-ling. “By accommodate foreigners and create a tinued competitiveness in an era improving the comprehension and con- more bilingual overall environment. T of globalization, the National versational skills of the next generation Among the more targeted assign- Development Council (NDC) last of English speakers, we can elevate Tai- ments, the Ministry of Culture and the December launched a plan to develop wan’s international competitiveness.” National Communications Commis- Taiwan into a “bilingual nation” by To that end, the NDC has drafted sion have been tasked with encouraging 2030. The goal is not to establish Eng- a set of common strategies for the var- the promotion of English through lish as an official language, but to ious government agencies to follow, in broadcasting media. Specific initia- “create an English-speaking environ- addition to assigning individual goals tives include an increase in the number ment and make Taiwan a society in to particular ministries. The joint strat- of English-language programs on radio which people can communicate in Eng- egies stress the creation of bilingual and television and adding English subti- lish ﬂuently.” documents and websites, as well as tles on certain television programs aired The NDC says the intent is to “help the provision of front-line services and in Mandarin. attract multinational enterprises to public-service hotlines in English to For its part, the Financial Supervisory invest in Taiwan or do business with the Taiwanese.” At the same time, the policy is seen as creating “better opportunities for career development” and “stronger international competitive- nesss” so as to reverse the brain drain of recent years. The national bilingualization goal was ﬁrst raised in 2018 by then-Premier William Ching-te Lai, who had cham- pioned a similar program four years earlier for the city of Tainan during his tenure as mayor. The national project recognizes the need for a major change in the way English is taught. “Most Taiwanese students have no problem with English grammar, but what we need to focus on Foreign and local teachers collaborate to stimulate student interest in learning English. more is the ability to communicate,” PHOTO: MINISTRY OF EDUCATION

32 TAIWAN BUSINESS TOPICS • OCTOBER 2019

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Foreign students and their local host families gather for a pre-meal photo opp. PHOTO: MINISTRY OF EDUCATION

Commission is asking banks to enhance phase is teacher preparation, and it’s be an important tool in promoting their employees’ English proficiency and the most important,” Deputy Min- English learning. The authorities are create a friendly bilingual environment ister Fan Sun-Lu told Taiwan Business conscious of the risk of widening the for financial services. Banks are being TOPICS. This year eight universities digital divide between the cities and encouraged to set up special bilingual received subsidies to set up English- rural areas, and therefore determined service counters, and one to three “bilin- teaching research centers, and 40 senior to ensure that computers and internet gual demonstration branches” are due secondary-school teachers were sent connections are conveniently available to be opened next year. overseas for advanced training. in all parts of Taiwan. In a change long sought by AmCham In all, 10 Taiwanese universities Minister Chen cites the examples Taipei, the government will encourage are slated to establish programs for of a junior high school in Hualien that ministries to provide English versions Teacher Education for Teaching Sub- conducts all music classes completely of tender documents for government- jects in English (TETSE). The objective in English and an elementary school in procurement cases with potential for of TETSE is to make it possible for sub- Taitung that holds its graduation cere- foreign investment. The Public Con- jects other than English to be taught in monies in English. “I don’t think that struction Commission will also provide English language at the elementary and the difference between smaller and standardized English translations of key high-school levels. MOE aims to have larger cities has to be a real issue any- terms used in tender documentation for 2,000 teachers by 2022 who can teach more,” she says. “The real determinant public projects. subjects such as math, science, world is whether the motivation is there.” Other specific initiatives are designed history, and geography in English, and Also aimed at narrowing the dig- to raise English proficiency among per- 5,000 teachers by 2030. ital divide is the Cool English Online sonnel in hospitals, hotels and other To start the exposure to English Learning Platform that MOE has estab- tourism enterprises, and the science and early, MOE’s bilingualization plan calls lished in collaboration with National industrial parks. Bus and taxi drivers for developing effective ways to inte- Taiwan Normal University. The plat- will receive training in basic English grate English into preschool caretaking form is designed to make learning communication. activities and kindergarten curricula. English a fun activity. Naturally the biggest responsibility Another prong of the plan is to provide So far four programs are being belongs to the Ministry of Education more opportunities for older students offered. The Voice of America (VOA) (MOE), which has devised a 12-year to gain more international experi- movie English program consists of two- plan for creating a bilingual school ence. Besides setting up more exchange minute movie clips with Chinese and system. A number of laws and regula- programs in partnership with foreign English subtitles and tests; a song lyrics tions will have to be revised to inject universities, the Ministry will encourage game involves listening to English songs the necessary flexibility into the educa- student participation in international and filling in parts of the lyrics in order tional system. forums, such as Model United Nations for the music to continue; “English Vil- Implementation is currently in competitions. lage” is an integrated gaming system the first of four phases. “The first The use of digital technology will for learning English through 3D simu-

TAIWAN BUSINESS TOPICS • OCTOBER 2019 33

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lated scenes; and a ﬁnal system provides cultural value of the minority languages. lish is one, whereas Taiwan aims only online help in detecting grammatical Both Chen and Fan express confi- to improve the English comprehension errors. dence that the promotion of English and communicative ability of the gen- In addition, MOE plans to award will not impair students’ proﬁciency in eral population. scholarships for the professional devel- Chinese or minority languages. They As a result, the government has opment of certain teachers working in note that the bilingualization blueprint established its own set of KPIs and is rural areas on condition that they return would not increase the time devoted closely monitoring the implementation to teach in the same rural areas for at to English classes in school, but rather of the NDC’s blueprint. least four years. According to Deputy would call for more subjects to be NDC has explored whether there are Minister Fan, MOE is also working on taught in English. any credible international institutions a pilot English-immersion teaching pro- How will Taiwan be able to gauge that could eventually help rate Tai- gram for selected rural schools. the success of the bilingualization pro- wan’s degree of bilingualness, the way Over the years one of the criticisms gram in 2030? In considering that the World Economic Forum and others of expanding English instruction in the question, the government recognizes evaluate economic progress. To date, schools is that it could hinder students’ that no other country exists to serve however, no such resource has been dis- ability to master Mandarin, as well as as a case study. Some people have sug- covered. to learn one of Taiwan’s minority lan- gested Hong Kong and Singapore as The NDC’s Chen stresses the govern- guages. “Our view is that the mother models, but both are different from ment’s resolve to achieve an admittedly tongue is essential for a country’s cul- Taiwan in that they formerly were ambitious task. “Our market is not ture, so we cannot let that disappear,” British colonies. The situation in Singa- just China – it’s the whole world,” she says Chen, while also confirming that pore is more complicated in that it has says. “For this reason, we must strive to the NDC places great importance on the four official languages, of which Eng- become bilingual.”

hen I arrived in Tainan in TAINAN: the summer of 1991, not W even the city’s main roads had bilingual signs. As an English tutor, BILINGUAL POLICY I had to visit households in different neighborhoods, and thus quickly had to PIONEER learn how to read Chinese addresses. A few years later, romanization began to appear at major intersections. More recently, the city government BY STEVEN CROOK gave tourists a helping hand by placing informative bilingual map boards throughout the downtown area. Despite those improvements, out- siders who speak no Mandarin still face challenges when exploring or doing business in Tainan. Recognizing this problem, then-mayor William Ching-te Lai – later Taiwan’s premier – announced in 2014 that the city government would begin to promote English as the city’s second official language. The aim, according to the taskforce he established to oversee the policy, has been to “build Tainan into an international city with an Eng- lish-friendly environment and enhance Tainan’s international competitive edge.” An “English-friendly environment” would not only benefit foreigners, but OEASOL has helped vendors at several Tainan night markets add English-language also local English learners, explains menus and signs to their stalls. PHOTO: OEASOL Tien Linghu, who has served as deputy

34 TAIWAN BUSINESS TOPICS • OCTOBER 2019

English.indd 34 2019/10/4 上午12:52 BACKGROUNDER

director of the Office of English as the held an English-language speech con- Second Official Language (OEASOL) test for tour guides and temple staff since its establishment in March 2015. at Nankunshen Daitian Temple in the “Promoting the new policy to local city’s Beimen District. citizens was a very important first OEASOL encourages Tainan citizens stage,” says Tien. “In Tainan, some to think of “English as a tool they can locals emphasize mother tongues such use to win more business, not as a sub- as Taiwanese. They were afraid that if ject they hated at school,” says Tien. we promote English, the next genera- One of the office’s ongoing projects is tion might neglect local languages.” the issuing of EF (“English-friendly”) According to Tien, recent opinion and EF-Plus certiﬁcates to local individ- surveys show solid public backing for uals and businesses. So far, more than the bilingualization policy. “The atti- 700 shops, restaurants, bus drivers, taxi tude of local citizens and civil servants drivers, and tour guides have received has greatly changed, and there’s been a EF certificates. Another 502 have lot of positive feedback for the events obtained the EF-Plus credential. OEASOL seeks to help foreign visitors bet- we’ve organized,” she says. Restaurants hoping to attain the ter understand Tainan's traditional culture

In the early days, OEASOL faced basic EF certificate need little more than PHOTO: OEASOL some resistance within city hall. “Many a bilingual menu they can show to for- departments feared we’d be adding eign customers. Because translating tion.” In his view, “they need to ditch to their workload, when in fact we’re ever-changing menus would have hugely Tongyong and get in line with every- trying to help them. City government increased the office’s workload, a new where else by fully embracing Hanyu employees were worried they’d have function was added to the OEASOL Pinyin.” to write official documents in English, website. Now, restaurant owners Tien notes that in the past OEASOL which they said would be impossible wanting an English-Chinese bill of fare was "often on the frontline because – writing them in Chinese is difficult can download common menu compo- other bureaus weren't sure" how to enough,” recalls Tien. She notes that nents, piece them together, and print implement bilingualization. “Now the between 2013 and 2018, the percentage out the result. responsible bureaus are able to do it by of Tainan’s civil servants who have For EF-Plus, a grasp of 20 to 30 rel- themselves.” passed the GEPT (the Taiwan-designed evant phrases is enough. Applicants can However, the office faces budgetary and administered General English Pro- brush up on their English by reading and personnel challenges. “The achieve- ficiency Test) increased from 23% to and listening to sample sentences posted ments of the bilingual policy are not 50%. on the OEASOL website. The office often tangible, so many do not see the OEASOL has worked with the city then sends a native English speaker to need for more budget or personnel in government’s various bureaus to iden- evaluate each candidate. Certificates are our office,” she notes. OEASOL cur- tify essential or important documents valid for two years. rently has a mere four full-time staff, that should be made bilingual. Transla- “The bilingual menu database is including Tien. tion work is outsourced, and the office an initiative I particularly applaud,” Private-sector support supplements has developed an SOP to ensure that says Peter Whittle, a freelance trans- the official budget. One foundation every translation meets the required lator from the UK who has worked donated NT$20 million. Education standard. Tien says the quality of trans- with OEASOL on several projects. “I’m businesses like Studio Classroom and lated documents has gotten much better pleased that I prevailed when advo- Scholastic have provided free content over the past four years. cating Hanyu Pinyin transliterations of and online memberships for activities Tainan is one of Taiwan’s bilingual- distinctive Taiwanese foods, instead of like the annual reading festival. ization pioneers. Not surprisingly, other using existing English names of similar “Policy continuity is another issue, local governments – among them Kao- foreign foods,” he adds. Accordingly, as improving English proficiency takes hsiung and Taichung cities, and Penghu the database translates as “zongzi” a lot of time,” says Tien. “The reassign- County – have sought advice from and as “shuijiao,” rather than ren- ment of bureau chiefs can also have an OEASOL. dering both as “dumplings.” impact, as some are much more aggres- As might be expected in a city that is In Whittle’s opinion, OEASOL is sive about bilingualization than others.” one of Taiwan’s leading tourist destina- “doing a pretty good job of providing Could OEASOL eventually work tions, several OEASOL initiatives aim key information and signage in Eng- itself out of a job? “Ideally, when every to make Tainan’s culture and cuisine lish, and putting a lot of good-quality city government bureau is capable of more accessible to English speakers. English into the physical and online including bilingualization as one of their Last year, the office commissioned environments.” He qualifies his praise responsibilities, our office’s mission will the writing and recording of a series of by describing the use of Tongyong be completed,” says Tien. “But we still audio-guides introducing nine major Pinyin for place names as “the main have a long way to go, and there’s much temples. In July, the city government deficiency of Tainan’s bilingualiza- work to be done by our office.”

TAIWAN BUSINESS TOPICS • OCTOBER 2019 35

English.indd 35 2019/10/4 上午12:52 ANALYSIS

REGULATING TOBACCO IN TAIWAN REQUIRES NUANCE

Smoking rates are declining, but smuggled untaxed cigarettes remain a major problem.

BY ANNA YANG

raft amendments to Taiwan’s A recent scandal involving the by TIROC. In that case, the two Tobacco Hazards Prevention attempted smuggling of nearly 10,000 National Security Bureau (NSB) offi- D Act, which passed their first duty-free cigarettes into Taiwan by cials traveling as part of President Tsai reading in the Legislative Yuan in 2017 two government officials in July is an Ing-wen’s entourage on her visit to the but have not yet proceeded further in example of the type of activity described Caribbean attempted to bring the ciga- the legislative process, have received a mixed reception from various interest groups. In addition to the Tobacco Hazards Prevention Act amendments, which expand the scope of smoke- free areas and stipulate a 50% increase of the warning label area on cigarette packs, an amendment to the Tobacco and Alcohol Tax Act that took effect in June 2017 raised the cigarette tax from NT$11.8 per packet to NT$31.8. Many industry stakeholders have concerns regarding these changes. The Tobacco Institute of the Republic of China (TIROC), a non-profit organization that represents tobacco companies in the Taiwan market, has singled out the higher taxes for particular criticism. “The demand for low- priced illicit cigarettes that evade taxes increased considerably after the very significant and ill-advised increase in the tobacco excise tax in June 2017, impacting both the legitimate industry Two of the best-known celebrity anti-smoking activists in Taiwan were veteran actor Sun as well as the government,” TIROC Yueh, left, and model Chen Shu-li, both of whom were previously heavy smokers. Sun died said in a statement. last year at the age of 87. PHOTO: JOHN TUNG FOUNDATION

36 TAIWAN BUSINESS TOPICS • OCTOBER 2019

tobacco.indd 36 2019/10/4 上午12:54 ANALYSIS

rettes into the country by working with The 2018 Taiwan Tobacco Con- enough,” says Dr. Lai. “For the end a senior official at China Airlines. The trol Annual Report, published by the game, according to the [World Health products were impounded by Customs. HPA’s Tobacco Control Division, finds Organization’s Framework Conven- Investigators now suspect a previous that smoking is in fact sharply on the tion on Tobacco Control], a rate of less pattern of similar behavior, with NSB decline in Taiwan. The report found than 5% is our goal. We aren’t against employees smuggling cigarettes in order that the adult smoking population has tobacco companies, but we have to pro- to resell them for a profit in Taiwan. decreased dramatically, from 21.9% tect the population.” Internal investigations have been in 2008 to 14.5% in 2017. A similar In addition, the rapidly expanding launched by both the NSB and China decrease occurred among student-aged electronic cigarette market threatens to Airlines. smokers, with the percentage of senior derail further progress. Although e-cig- The recent amendments also ban high school students who smoke drop- arettes officially are banned in Taiwan, flavored cigarettes. According to the ping from 14.8% to 8.3% during the they are still widely available. The HPA Ministry of Health and Welfare’s same period. found that e-cigarette consumption Health Promotion Administration Dr. Lai Chih-kuan, a physician in among junior and senior high school (HPA), young females are more likely the Department of Family Medicine at students rose from 2% and 2.1% to smoke flavored cigarettes, and more Taipei Veterans General Hospital, notes respectively in 2014, to 2.5% and 4.8% females smoke flavored tobacco than that tobacco sales in developed coun- in 2017, a significant increase. The HPA men overall. tries, including Taiwan, have decreased estimates that there are now around However, this amendment is facing since 2009. “For me as a healthcare 52,000 minors in Taiwan who engage backlash from the tobacco industry as provider, the thing we hope for is that in vaping, as the use of e-cigarettes is well. “The Dispute Settlement Body of that our people can be free from the called. the World Trade Organization ruled in harms of tobacco,” said Dr. Lai. According to a study published in 2012 that the U.S. measures restricting Despite the overall decreases in the International Journal of Environ- the ‘flavoring’ of tobacco products smoking, Taiwan still lags behind other mental Research and Public Health, the violated the Agreement on Technical developed East Asian countries in its unique danger posed by e-cigarettes is Barriers to Trade,” states TIROC. progress in cutting back on smoking. their ability to attract adolescents who “Since there is no evidence that a ban The rate of males above the age of 15 are unlikely to try traditional cigarettes. on flavors will contribute to reducing who smoke on a daily basis is cur- This risk is facilitated by “sophisticated tobacco use, allowing the continued rently 27.9%, compared to 25.4% in strategies of targeted marketing” that use of flavors and additives should be Singapore and 18.6% in Hong Kong. promote a wide variety of attractive fla- maintained.” “The rate is decreased now, but not vors and claims that e-cigarettes are

TAIWAN BUSINESS TOPICS • OCTOBER 2019 37

tobacco.indd 37 2019/10/4 上午12:54 ANALYSIS

Vaping devices come in various forms, including the hand-grenade-style variant, left, and the IQOS tobacco-heating type, right. PHOTOS: WIKIPEDIA

less harmful to human health, the study is really cheap,” says Lin Ching-li, in the military than in the general popu- says. “Once nicotine use is established, director of the Tobacco Hazard Preven- lation. Young conscripts are particularly adolescents become more open to con- tion Section at the Foundation. “We susceptible to this influence. Educa- ventional smoking.” have thousands of [convenience stores] tion is important, as those with a better The study shows that the switch which are open 24 hours a day where understanding of the health implica- from e-cigarettes to traditional ciga- people can fuel their cigarette addiction tions are less likely to start smoking. rettes generally takes place after two for as low as NT$100. It’s too conve- As for smoking among civilians, the years. Considering the greater avail- nient.” He and others at the Foundation John Tung Foundation cites consider- ability and lower cost of such cigarettes, hope to see the tax raised to 75% of the able success in changing how Taiwanese the choice to switch over may be due to total price of tobacco in the future. view the habit. The Foundation has convenience. The popularization of smoking in used educational programs and celeb- Given the concerns about e-ciga- Taiwan has been linked to the country’s rity partnerships to promote education rette use, the Legislative Yuan has also system of military conscription in past and awareness about the potential dan- been considering adding the regula- decades, when free cigarettes were often gers of smoking. tion of these products into the pending provided to soldiers. Today, smoking “Forty years ago, for my father’s and Tobacco Hazards Prevention Act is still widespread among military per- mother’s generation, smoking was con- amendments. sonnel, but appears to be less prevalent sidered someone’s personal business – than in the past. A study published by there was no reason why I shouldn’t be High cost to health the journal Military Medicine reported a able to smoke,” says Lin. “The inter- smoking rate of 49.2% in 2006, while a national trend of smoking awareness Smoking is responsible for 27,000 follow-up survey in 2014 found that this helped a lot, but we were the first in deaths annually in Taiwan, according number had decreased to only 30.1%. Asia to have celebrities come out against to the 2018 Taiwan Tobacco Control This decrease can be attributed in smoking and become volunteers.” Annual Report. Added to the human part to targeted efforts by the HPA and The Foundation’s extensive network cost is a NT$185.8 million price tag, Ministry of National Defense to min- of celebrities regularly join campaigns consisting of “direct national health imize smoking among military staff. to spread awareness in order to combat expenditures of NT$65 billion and indi- The Integrated Tobacco and Betel the notion that smoking is cool. Those rect losses of productivity [totaling] Nut Control Program, which con- who have worked publicly with the NT$120.9 billion.” sists of awareness sessions, educational Foundation include Jackie Chan, Ariel Despite the hikes on the cigarette opportunities, and psychological con- Lin, Jay Chou, and Jam Hsiao. tax provided for in the recent amend- sultations, was launched in 2003. The Taiwanese government is also ments, the John Tung Foundation, a Smoking areas in military facilities have doing its share to reduce smoking. non-profit organization focused on also been gradually reduced and the Government agencies sponsor a making Taiwan smoke-free, argues that policies strictly enforced. number of programs aimed at encour- taxes on tobacco in Taiwan are still The Smoking Cessation Guidance aging smoking cessation. The Taiwan too low. The Foundation emphasizes Network has also been instrumental in Smokers’ Helpline, a telephone coun- that over the past 30 years, the price of changing smoking culture within the seling service administered by the HPA cigarettes around the world has risen military. The organization’s team of has helped over 140,000 people quit dramatically. In Australia, prices rose specialist medical officers offers sup- smoking over the 15 years it has been by a multiplier of 12.7, in New York by port to military personnel to help them in operation. In addition, hospitals 8.5, and in Hong Kong by 4.75. In con- through smoking cessation treatments and clinics that provide smoking cessa- trast, the price of cigarettes in Taiwan and potential symptoms of nicotine tion treatments are reimbursed, and the slightly more than doubled during the withdrawal. government continues to partner with same period. Although progress is being made in NGOs and other groups to produce ad “The price of tobacco in Taiwan this area, smoking rates are still higher campaigns that target youth smoking.

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A Special Report on the Environment

Playing a Role in Protecting the Planet

PHOTO: JULES QUARTLY TAIWAN BUSINESS TOPICS • OCTOBER 2019 39

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TAIWAN TURNS WITH THE TIDE AGAINST PLASTICS POLLUTION

What used to be known as the “Petrochemical Kingdom” is now leading the fight against the production and use of plastics, or coming up with clever alternatives

BY JULES QUARTLY IN THIS REPORT

here was a time not so long some 808 trillion microbeads down ago when simply having the drain each day. T a shower would typically The good news is that microbead release hundreds of thousands of products were banned in Taiwan on plastic microbeads down the drain. July 1, 2018. In fact, Taiwan was Eventually they would wash out to among the world’s first eight coun- sea and enter the food chain through tries to put a stop to the import and • Taiwan Turns with the Tide Against Plastics Pollution p40 plankton, fish, and other marine life. manufacture of microbeads in rinse- Microbeads are made from pet- off cosmetics. rochemicals and are less than one What’s more, the phasing out millimeter in diameter. They were and eventual ban of personal care introduced in 1972 and became ever items with plastic microbeads was • From “Garbage Island” to a Model of more popular because of their sup- the result of a concerted effort by Recycling p43 posed exfoliating qualities when used the government, particularly the in toothpastes, face cleansers, mois- Environmental Protection Adminis- turizers, and other personal care tration (EPA), local and international products. About 99% of the micro- environmental groups, commercial • Electric Scooters Could be the Future of beads that didn’t make it to the organizations, and the public. It was Mobility p46 ocean settled into the sludge at treat- a win for the environment, arguably ment plants and was eventually used with no losers. as fertilizer. This change was a radical U-turn In time it was not only found that for a country that just a few decades the exfoliating qualities of micro- ago was widely known as the “Pet- beads are dubious at best, but that rochemical Kingdom” on account the microbeads release harmful of its huge petrochemical industry bisphenol A and absorb pollutants spearheaded by the state-owned CPC linked to birth defects and cancer. In Corp. and the private-sector For- 2012 a study showed just how ubiq- mosa Plastics Group. Despite having uitous microbeads had become in no natural oil or natural gas reserves, the food chain. It was calculated that Taiwan developed a first-rate manu- just one shower could release around facturing base for plastics derivatives, 100,000 microbeads into the ocean, which became a pillar of the national with households in the U.S. washing economy from the 1960s.

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10 IF.indd 40 2019/10/4 上午12:59 A Special Report on the Environment

AWASH IN PLASTICS • 51 trillion microplastics particles litter the seas (500 times more than stars in our galaxy) • Plastic harms the marine bacteria Prochlorococcus, which scientists say produces 10% of the oxygen we breathe • Up to 80% of all litter in the oceans is made of plastic • By 2050, 99% of the Earth’s seabirds will have ingested plastic • Each year, more than 8 million tons of plastic end up in oceans • This is estimated to cost at least US$8 billion in damage to marine ecosystems • At the current rate, by 2050 oceans will have more plastic than fish • A study shows even worms fail to thrive in soil containing microplastics

SOURCES: UN ENVIRONMENT PROGRAM AND THE GUARDIAN

Only after Taiwan became relatively Greenpeace, which established its annually, resulting in the use of some 4 rich in the latter half of the 20th century Taiwan presence in 2010, is the only million plastic cups. If stacked one on could it afford to think about the harm international environmental, non-gov- top of another, they would equal 394 these industries were doing to the envi- ernmental organization in Taiwan. At its Taipei 101s. ronment. Then pressure groups started lively office in a four-floor building near forming and taking direct action against the Presidential Office, it organizes green Cutting down on straws big business, gaining popular support. campaigns and trawls for contributions This movement swelled and eventu- from individuals and foundation grants, Greenpeace was also involved in the ally became so powerful it prevented since it does not accept donations from recent ban on single-use plastic straws, the NT$600 billion (US$19.3 billion) governments or corporations. which went into effect on July 1, affecting Kuokuang petrochemical project from Chris Liu, the Taipei-based commu- fast-food chains, shopping malls, govern- going ahead in 2011, also shuttering nications team leader for Greenpeace ment departments, and schools. Those CPC’s Fifth Naphtha Cracker in Kao- East Asia, notes that Greenpeace started flouting regulations are warned and then hsiung in 2016. actively campaigning for the phasing out fined from NT$1,200 to $6,000. A rep- Stricter laws, difficulty getting plan- of microbeads in cosmetic products from resentative of McDonald’s in Taiwan was ning permission, and the reputational 2015. Since 2017, the organization has quoted as saying that eliminating plastic cost of taking on well-organized green been encouraging schools to go plastics- straws would reduce plastic waste at is groups prevented further development of free by introducing green ideas through stores by 16%. what was now seen as a dirty industry. talks and activities. In celebration of the ban on straws At the same time, incentives from China Last year, Greenpeace launched an in those locations, Greenpeace put up a led many local manufacturers to offshore investigation into the amount of marine fun quiz on its website, asking people to their operations across the Strait. debris on the nation’s coastline, which led guess how many straws Taiwanese use in These factors, plus an ever more to the EPA following up and initiating a a year. Try it yourself: a) 30 million; b) 3 engaged EPA, effectively started removing seashore clean-up campaign in conjunc- billion; or c) 300 million. The answer is 3 polluting industries and gave Taiwan the tion with local governments. billion, or 140 straws per person, which opportunity to clean up its act. This year Greenpeace has been urging shows the scale of the problem. In fact, This transformation from Taiwan the major supermarket chains to go plas- the public reaction to the partial ban on being a major petrochemical manufac- tics-free. Liu says a “citizen science” straws has been so positive that extension turer to being at the forefront of the fight survey of the supermarkets determined of the policy to take-out items may be against plastic pollution was the narra- that 95% of plastic packaging is single- moved up from the original schedule of tive of a recent exhibition organized by use, meaning that “the life cycle is very the end of 2020. Greenpeace. Held at the 24-hour Eslite short and the plastic finds its way into the Liu cites the United Nations finding bookstore on Dunhua South Road at the environment quickly – and this could be that plastics pollution is second only end of August, it was called Sea, What’s mostly prevented.” to climate change as a critical threat to the Plastic – Taiwan Coastal Garbage Another Greenpeace initiative is the planet. Naturally, he drinks from a Inspection. Earnest Greenpeace volun- plastic-free marathons featuring reusable ceramic mug rather than buying single-use teers guided streams of visitors through drinking cups and the absence of plastic plastic bottles and carries around his own aisles festooned with plastic detritus sus- wrapping and bags on the T-shirts given chopsticks instead of using disposables. pended from the ceiling or sculpted into away. A Greenpeace study showed that He quotes the “Plastic 3 Rs” as rules displays. Taiwan hosts about 784 running events to live by: Reduce (less garbage in and

TAIWAN BUSINESS TOPICS • OCTOBER 2019 41

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Visitors attend the Sea, What’s the Plastic – Taiwan Coastal Garbage Inspection exhibition organized by Greenpeace in Taipei. PHOTO: JULES QUARTLY

less garbage out); Reuse (do without was the government ban on plastic bags pollution, Liu admits. But he says he can throwaway products, use items that can at the beginning of 2018, which meant point to exactly when everything changed be reused many times); Rethink (pro- stores were not allowed to offer them and environmental awareness became a mote a circular economy and the goal of free with a sale. According to the EPA’s big issue for the majority of Taiwanese. zero waste). Besides changes in individual Department of Waste Management, Tai- The turning point, he says, was when action, he hopes that business will also wanese on average used 700 plastic bags an agonizing 10-minute video of a sea embrace the cause. per annum before January last year. After turtle in Costa Rica having a plastic The example of a Taiwanese company that date, 70% of customers chose to do straw removed from its nose went viral called Minima Technology is instructive. without a bag rather than pay a mere in 2015. “People really started thinking Founded in 2000 by chemical engineer NT$1 or $2. The result should be an about plastic waste and the harm it was Huang Chien-ming, the company pro- annual reduction of 1.5 billion plastic causing, and this carried on with stories duces biodegradable plastics, but for a bags a year. The aim is to reduce average about whales dying on Taiwan’s coast long time the demand for its products was annual use to 100 bags by 2025 and to and revealing the amount of plastic they so limited that it struggled to stay afloat. eliminate them entirely by 2030. had ingested,” Liu recalls. That changed in 2018, when Mini- “This is quite good,” says Liu. “The This was also when beach-cleaning ma’s products received U.S. certification government is on board and phasing activities became popular and young and Starbucks urgently needed biode- out plastics use, corporate support is people started getting involved in gradable straws to deal with a ban on growing, and so is the general awareness environmental activism – lately fur- plastic straws back in Seattle. Now Apple of society. The overall direction is posi- ther inspired by the example of Greta and Costco also use the company’s prod- tive, but what we are pushing for now is Thunberg, the 16-year-old Swedish envi- ucts, and Formosa Plastics has taken a a faster timeline.” ronmental activist behind the global 19% stake in the company, while Japan’s Greenpeace International Execu- youth-strike movement regarding cli- Mitsui & Co. Plastics has taken 10%. tive Director Jennifer Morgan has called mate change. “In Taiwan we’re seeing These companies see promising Taiwan “a role model for other coun- quite a lot of students doing this sort of business opportunities in offering biode- tries” by phasing out single-use plastics. thing, giving voice to their opinions and gradable plastics products as one of the The nation’s onetime “Petrochem- demanding action on emission controls, solutions to tightening government con- ical Kingdom” moniker and trash-strewn plastic pollution, and so on,” Liu says. trols around the world on plastics waste coastline are on the face of it difficult While Greenpeace is often the most and pollution. to square with the idea of being a role visible face of environmentalism, many Another example of change in Taiwan model and world leader in battling plastic other smaller-scale and localized organi-

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zations are also active, like the grassroots Society of Wilderness, Ocean Citizen plastic straws, and single-use take-away environmentalist NGOs that worked Foundation, Hi-in Studio, Lee-zen Foun- beverage cups. After dozens of meetings, with the EPA in 2017 to create the dation, and the Wild at Heart Legal the platform came up with a timeline to Marine Waste Management Platform Defense Association. reduce single-use plastic products in three (MWMP). These included the Kuroshio MWMP primarily sought to reduce phases. By the end of the third phase in Ocean Education Foundation, Taiwan plastic litter, such as PET bottles and their 2030, those products should be totally Environmental Information Association, caps, plastic bags, disposable utensils, eliminated in Taiwan.

FROM “GARBAGE ISLAND” TO A MODEL OF RECYCLING

The Taiwanese have learned the value of “Reduce” and “Reuse” in dealing with the trash households produce.

BY JANE RICKARDS

ach night at a designated time in the lowest in the world per capita. and 1.54 kilograms for Australia. Only Taipei neighborhoods, a bright Last year, this figure stood at 1.13 a few countries, including neighboring E yellow garbage truck makes an kilograms per person, says Liu Jui- Korea at 1.06 and Japan at 0.93 kilo- appearance, its arrival signaled by a hsiang, deputy director general of the grams, produce less trash per person. sound system playing a familiar tune Department of Waste Management at the Taiwan’s output of trash has declined such as Beethoven’s Für Elise. Trailing Environmental Protection Administration over the over the past two decades, even close behind are one or two smaller (EPA). That compares to 2.04 kilograms as the economy has expanded. Although trucks devoted to collecting recyclables for the U.S., 1.75 kilograms for Germany, the 1.13 kilograms per person in 2018 and organic waste. Nearby residents scurry down from their apartments to deliver their trash to the garbage collectors. According to Taiwan law, kitchen scraps must be separated from recyclables. Both must be separated from ordinary garbage, and ordinary garbage must be placed in certified plastic bags. Otherwise, you could be fined as much as NT$6,000 (about US$200). Given Taiwan’s relatively small size and dense population, it is hardly sur- prising that the nation has become a world leader in recycling. In fact, encouraged by the central and local governments, environmental awareness influences behavior even before the recycling stage. The amount of household Taiwan has one of the highest rates of recycling in the world, as well as public programs trash produced in Taiwan is also among designed to reduce waste.

TAIWAN BUSINESS TOPICS • OCTOBER 2019 43

10 IF.indd 43 2019/10/4 上午12:59 INDUSTRY F CUS represents an increase over the 0.84 kilo- How did this happen? In the 1980s, and another NT$200 to break it down grams in 2015 and 0.87 kilograms in as Taiwan democratized, the “not in into spare parts that might ultimately 2016, the difference may be due to a my backyard” syndrome made it hard sell for only NT$300. From the fund, change in how waste is classified by the to set aside more sites for landfills. Sim- the EPA will subsidize the company with government. Harvey Houng, a board ilar public resistance stymied government another NT$300 to match the resale director at the EPA’s Institute of Environ- plans in the early 1990s to build as many price, enabling it to earn a profit and pro- mental Resources, notes that in January as three dozen large incineration plants viding the incentive for it to remain in 2017 the central government reclassified The local and central governments felt business. personal waste generated by employees in pressured to explore and implement recy- The fund is used only to subsidize the industrial parks as municipal rather than cling measures as alternative options. resale of marginally profitable second- industrial waste, complicating annual One milestone was the “4-in-1 hand items and scrap, Houng explains. comparisons. Recycling Program” created through There is no need to subsidize the sale of Of all the garbage created by house- amendments to the Waste Management discarded goods with a high resale value, holds in 2018, 42.68% was incinerated, Disposal Act in 1997. That made Taiwan he adds. a level considered to be quite low by one of the first countries in the world Currently the government has des- international standards, notes Houng. to introduce the concept of “extended ignated 33 items in 13 categories as Over half – 56.41% – was recycled. producer responsibility.” In brief, it’s eligible for subsidies if resold by licensed Noncombustible waste sent to the a strategy to ensure that producers or companies. They include aluminum and nation’s 67 landfills amounted to 0.91% manufacturers are liable for the environ- glass containers, and discarded auto- of 2018’s trash. mental costs associated with a product mobiles, motorcycles, televisions, light Liu of the EPA says it is difficult to throughout the product’s lifespan. bulbs, and laptops. Manufacturers and compare Taiwan’s recycling rates with The “4-in-1 Recycling Program,” importers of the 33 items – along with other countries as they all use different which integrated the island’s com- the creators of their packaging and con- standards. But a major study conducted munities, recycling facilities, and tainers, plus the producers of certain by the OECD in 2015 found that Taiwan government agencies into a recycling net- raw materials – are all required to reg- – at 55% – had one of the highest recy- work, involved establishment of a fund ister with the EPA and pay the required cling rates in the world. While Germany using fees levied on manufacturers and recycling fees into the fund. stood at a whopping 66%, the rate for importers. For their part, Taiwanese consumers the U.S. was 35% and Israel had one of The fund, managed by the EPA’s are required to make sure that any of the the lowest figures at 20%. Recycling Fund Management Board, 33 items that are in their trash are given Overall, an average of 0.49 kilograms subsidizes the collection of recyclable separately to the truck that collects recy- of trash per person was incinerated daily materials and their processing by licensed clables. In addition, the EPA requires local last year. Houng notes that this number is enterprises. Houng cites the example of environmental bureaus to collect certain down from 1.14 kilograms per person in an old refrigerator dumped in a remote items – including waste paper, cell phones, 1998, a huge 60% reduction. area. It might cost NT$200 to move it and chargers – for recycling, although

Trash-collection and recycling trucks come by each neighborhood in the evenings to help keep the urban environment clean. PHOTO: CNA

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they are not eligible for subsidies. Another milestone occurred in 2006, when the sorting of household garbage into three different categories – organic waste, recyclables, and ordinary rubbish – became mandatory nationwide. Fines for placing discarded recyclables into the regular rubbish truck or not properly sorting garbage range from NT$1,200 to NT$6,000. The organic scraps collected by the trucks are eventually processed into compost or pig feed.

Heightened awareness

Partly because of a compulsory envi- 1990s, when some media reports referred generate steam, which is then used to run ronmental-education program introduced to Taiwan as “Garbage Island.” At that a turbine to generate electricity. in 2011, Taiwanese consumers are con- time, piles of trash often accumulated on The electric power is sometimes used sidered to have become highly conscious street corners in the cities and marred the for purposes other than incinerator oper- of waste and tend to purchase only what beauty of the countryside. ations. At the Neihu Refuse Incineration they need. Houng, who worked in the In the 1980s, waste treatment initially Plant, for example, the electricity gener- U.S. for 17 years at the University of focused on burying rubbish in land- ated also heats a public swimming pool. Houston and the Texas Department of fills. But limited land space for landfill The Yunlin and Taitung incinera- Health, says few countries have enacted sites led to makeshift trash dumps near tors were shut down due to complaints laws to ensure that this kind of education residential areas, prompting public pro- from nearby residents, although the is mandatory. tests. In the early 1990s, the government current system of transporting their The Environmental Education Act of responded with plans to build a string waste to neighboring counties is less 2011 requires all high school students, of 36 incinerators. Those plans not only energy efficient. as well as employees of government brought protests from environmental- Some observers are critical of the institutions, state-run enterprises, and ists and people living near the designated system of generating electricity from the statutory bodies that receive more than sites, but also turned out to be over- incinerators. Robin Winkler, founder of 50% of their funding from the govern- ambitious. the environmental group Wild at Heart ment, to attend at least four hours of “At the beginning, after calculating the Taiwan, says it may give Taiwanese a environmental education courses. “Even amount of waste generated in Taiwan, we false impression that if they create and the president herself has to go through a thought 36 was the number we needed,” burn more trash, they are producing few hours of environmental education,” says Houng. “So we started building the more “green energy.” Houng notes. incinerators. At the same time, we also Remnants from the bottom ash in Other measures have been adopted launched programs to reduce the amount the incinerators are often recycled into to encourage people to avoid using dis- of waste we generate.” road construction materials. According posable items. For example, Houng says, The waste-reduction programs turned to the EPA website, after magnetic sep- disposable cups may not be used in public out to be so successful that in the end aration and screening, ferrous and non- schools and government offices. only 26 incinerators were actually con- ferrous metals can be salvaged from this In Taipei and New Taipei City, a structed. Later two of them – in Yunlin ash. Processed bottom ash can also be system created by the central govern- and Taitung Counties – were moth- mixed with asphalt, replacing bricks ment is in use, requiring that garbage be balled, leaving just 24 still in use. Even and other materials. The EPA has been disposed of in designated color-coded then, notes Houng, there is insufficient actively promoting the use of processed plastic bags. The bags are available from municipal waste for the 24 incinerators to incinerator bottom ash products in convenience stores, with prices varying burn. The excess capacity is used to help public construction projects. However, according to size. A large rubbish bag in industries burn their non-hazardous com- some environmentalists such as Winkler Taipei costs NT$5. bustible waste. express concern that dangerous toxins Liu says that charging a fee for the Each incinerator has a core electrical from the bottom ash remain in their bags is aimed both at providing a dis- generator powered by burning the trash, materials, posing an environmental risk. incentive to create trash and enforcing “so we recover energy from the waste,” In 2007, the government enacted a a “polluter-pays system.” The system Houng says. The garbage designated for law preventing untreated waste from encourages recycling, as recyclables can be incineration is already relatively dry, as being placed in a landfill site. Precious placed in any kind of plastic bag for free. it contains no organic waste. It is then little space is left in Taiwan for landfills, Taiwan’s stellar record for recycling ignited in a burner maintained at around says Houng, and they are used for incin- shows how far it has come from the 800 degrees Celsius. The heat is used to erator ash that can’t be recycled.

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ELECTRIC SCOOTERS COULD BE THE FUTURE OF MOBILITY

Given the right government policy and smart marketing by local manufacturers, Taiwan’s love affair with scooters could help the environment.

BY JULES QUARTLY

t’s a daily commute for tens of thousands of people, but it has also I become an annual pilgrimage for electric motorcycle owners. In what is known as the “motorcycle waterfall,” scooters jostle for position like a huge shoal of fish cascading over Taipei Bridge. This year, electric scooters gathered on the final Sunday of September at a park in the gritty, post-industrial district of Sanchong in New Taipei City. After a mass crossing of the bridge and pausing for PR shots at the lights on the off-ramp exit, the convoy of riders wearing fancy dress and angel wings bore down Min- quan West Road and headed to Taipei City Hall Plaza in the glossy Xinyi shopping district. Though the “flash mob event” was A cascade of motorcycles descends from one of Taipei's busy bridges during rush hour. organized by the electric scooter manufacturer Gogoro, this year’s edition was open to everyone with an e-scooter. A Taiwan’s love affair with the convenient It’s another milestone crossed for the total of 1,572 bikes came from all over but polluting combustion-driven scooter. company that was founded in Taoyuan the country, setting a Guiness World According to Gogoro chief marketing in 2011 and is intent on transforming Record for the world’s largest motorcycle executive Chen Yen-yang, the recent the e-scooter industry, not just in Taiwan parade. record-breaking event demonstrates how but around the world. In 2016, Gogoro It was a symbolic event because pho- Taiwan’s motorcycle market is moving managed to rustle up just 300 “smart tographers for decades have been fond away from polluting, gas-fueled engines scooters” for the bridge crossing from of taking zoom shots of Taiwan cities’ and evolving toward a clean, electric New Taipei to Taipei City over the rush-hour motor cavalcade or crafting future. He said there are now 200,000 Tamsui River. The next year there were slow-motion films with minimalist Gogoro e-scooter owners in the country, 500, and in 2018 the number rose to soundtracks. In doing so they have cre- just four years after the first vehicle was 1,303. ated an iconic image that encapsulates launched. Similarly, every year a new record is

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set for the number of e-scooters on the nation’s streets. According to marketing intelligence and consulting firm Motor- Cycles Data, sales of e-scooters have gained in recent years, often massively. Gogoro’s figure of 50,000 for the first half of 2019 represents a 30% increase over the previous year. In 2018, Gogoro sold 123,431 e-scooters domestically and abroad, double the volume of the previous year. Meanwhile, sales in Taiwan of conventional engine-type motorcycles were 425,382, down 8% for the first half of 2019. The data suggests that Taiwanese are getting rid of their combustion-engine scooters, but the situation appears more Gogoro, the Taoyuan-based e-scooter manufacturer, has grown rapidly in recent years as nuanced. For example, in 2015, there more Taiwanese opt to help protect the environment. were 13.75 million registered motorcycles PHOTO: GOGORO in Taiwan, or one for every 1.56 people, according to the Ministry of Transporta- stores dotted around the country. These record high of 91,000 electric motorcy- tion and Communications. In 2018, there stores provide jobs to hundreds of thou- cles produced in Taiwan in 2018 for the were an estimated 14 million, of which sands of voters, many of whom could domestic market, representing year-on- only a fraction were registered e-scooters. find themselves unemployed if scooters year growth of 81.8%, according to the Furthermore, MotorCycles Data states are just another 3C item. MOEA. E-motorcycles’ approximately that 2017 was a record-setting year, with To ease that transition, the Ministry 10% market share last year is pro- 1 million scooters sold in Taiwan. The of Economic Affairs (MOEA), industry jected to rise to 15% by the year’s end, second-highest sales level was 2018, with associations, and manufacturers have according to MotorCycles Data. Further, 756,170. While sales of gasoline-fueled provided subsidies for retraining and surveys show that nearly 60% of motor- motorcycles have slowed in the past two upgrading. At the same time the govern- cycle users would shift to electric models years, they remain at a high level, with ment will be creating the infrastructure given the right conditions. nine out of ten bikes sold being conven- for change. It aims to install 5,000 As a result, local manufacturers have tional rather than e-scooters. charging stations for electric motorcycles been scrambling to find a competitive Clearly a radical transformation of by 2023. edge in what could be a lucrative market. the transportation landscape, bringing In addition, incentives such as sub- Despite its relatively small size, Taiwan is significant environmental benefits, has sidies and tax cuts are being made one of the world’s major manufacturers not yet occurred. It’s estimated that more available, not only to consumers to of motorbikes, with companies such as than 20% of Taiwan’s PM 2.5 pollu- encourage the purchase of electric Kwang Yang (KYMCO brand), San Yang tion comes from scooters. While they scooters, but also to manufacturers to (SYM), Aeon, Taiwan Golden Bee, Adly, typically emit less carbon dioxide than help them step up development. The and PGO. They mainly produce bikes cars and are more fuel-efficient, they subsidies are critically important, as under 125cc, which are referred to as emit comparatively more hydrocarbons, shown by the launch this June of the first scooters or mopeds. which create smog, nitrogen oxides, and e-scooter collaboration between Gogoro In response to declining sales figures, carbon monoxide. and Japan’s Yamaha. the biggest scooter brand, KYMCO, is In 2018, the Taiwan government The Yamaha EC-05 is priced at putting its bets on electric models. At committed itself to banning the sale of NT$99,800, but with the government- the Tokyo Motorcycle Show in August, gasoline-powered motorcycles by 2035, backed subsidy program it can actually be it went all out by launching an electric citing pollution and the need to promote purchased for less than NT$70,000. Sup- superbike, plus e-scooters powered by renewable energy. Conventional combus- porters of the government assistance say it swappable batteries. CEO Allen Ko also tion-powered cars will follow in 2040. is necessary to encourage people to switch announced that 10 new e-motorcycle In the first stage, the policy calls for from gas to e-scooters – which in turn is models were in the works for launching restricting or phasing out vehicles more helping develop a promising new industry. within three years. than 10 years old, but implementa- On the other hand, critics say the money In a company press release, Ko said tion is difficult. Entrenched interests are would be better spent on developing KYMCO aims to sell “over half a million at stake, including oil companies and public transportation and reducing the electric vehicles worldwide” over the next scooter manufacturers, as well as the esti- number of scooters on the road. three years. He predicts that the number mated 28,000 motorcycle maintenance Subsidies do work, as seen from the of electric vehicles on the roads will

TAIWAN BUSINESS TOPICS • OCTOBER 2019 47

10 IF.indd 47 2019/10/4 上午12:59 INDUSTRY F CUS swell from 3 million today to something like 125 million units globally by 2030. “Electric vehicles have come a long way over the past few years,” Ko said. “Tech- nology is getting better every day and in countries like Taiwan, there are already some things in place to accelerate the adoption of electric-powered transport.” With its 3,000 employees and production of 570,000 vehicles a year, KYMCO is one of the world’s “big five” motorcycle manufacturers. Yet to a large extent it has had to play catchup with newer entrants in the e-scooter field, such as Gogoro. Horace Luke, Gogoro’s founder and CEO, was born in Hong Kong, studied industrial design in the U.S., and worked for major multinationals such as Micro- soft and Nike. Having made his home in Taiwan, Luke decided to build a business model that would contribute to the local Gogoro's charging stations can be found throughout Taipei and other major cities.

environment. Gogoro has established PHOTO: GOGORO a network of 1,500 battery swapping stations, and since Gogoro owns the batteries and lends them out for a monthly tion for other manufacturers. Yamaha, smart,” Lin says. fee, it is effectively an energy-manage- PGO, and Aeon Motor have all com- Aeon seeks to differentiate itself from ment company as much as a motorcycle mitted to using Gogoro’s battery- the competition by providing a sporty company. swapping system, enabling them to design, “speed, power, and safety.” Lin Gogoro has maintained momentum concentrate on producing innovative envisions a future when “everyone will be by steadily introducing new models vehicles without having to worry about connected through their scooter,” he says. to the market. The latest, the “Viva,” energy-source distribution. “It will help you find new friends, help was released this month. A lightweight, Explaining his thinking about teaming you at work and provide entertainment. Vespa-like creation, it is made for com- up with Gogoro, Aeon CEO Tony Lin Today, the hardware is less important. mutes and other short trips, since it has a notes that battery swapping is the most What is important is the software.” range of just 85 kilometers. economical and convenient method of On the subject of subsidies for As an energy provider, Gogoro has powering e-scooters. Taking the battery e-scooters, Lin comes up with an analogy. also positioned itself as part of the solu- out of the equation makes it possible to “It’s like a baby without milk, but if the concentrate on making safe, fast, and government does eventually cut subsidies, technologically advanced vehicles. then we will find a way to live. It should Aeon’s new AI-1 scooter emphasizes subsidize transformation of the market engineering and high-tech solutions to because people need encouragement and practical problems – such as what to do the outcome of cleaner, greener streets when you’re lost. Its smart dashboard benefits everyone.” offers a turn-by-turn display and voice If an electric-vehicle revolution is navigation, so the rider need only follow going to happen, it would seem a good simple instructions to reach the destina- bet that Taiwan will be at its center, given tion. An alarm sounds when the speed its longstanding love of scooters. A strong limit is exceeded. and smart manufacturing industry has Using the Internet of Things and developed, and it will undoubtedly ben- edge computing (moving processes in efit from domestic demand as it starts to the cloud to the e-scooter computer) conquer new markets abroad. creates a dynamic, digital interface for As Aeon’s Lin puts it: “Riding petrol accident detection and reporting. The scooters as opposed to e-scooters is like interface even provides an artificial-intel- using a landline compared to an iPhone. Aeon CEO Tony Lin sees a big future for ligence function to tell the rider when Is it necessary to change? Maybe not. But electric scooters. PHOTO: JULES QUARTLY the battery needs charging and where it is better – and we do need to change the nearest station is. “It’s smarter than with the times.”

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EXECUTIVE SUITE

MEET BRIAN HOCKERTZ OF OH! STUDY

A native of Kamloops in British Columbia, Canada, Brian Hockertz studied Chinese language in Nanjing and came to Taiwan in 1990 as an education advisor with the Canadian Trade Office. In 1995, he founded OH! Study to help Tai- wanese students find educational opportunities overseas.

From a two-person company, OH! Study has grown to more than 40 personnel working out of offices in four Taiwan cities. Over the years, it has assisted over 40,000 Taiwanese students go overseas to pursue their studies. The group also consists of the OH! Ya Travel Agency, OH! Study Immi- gration Agency, OH! Mazon online shopping platform, and OH! Study International Education Expo.

What ﬁrst got you interested in Asia? enough that I was permitted to take Chi- I was studying political economic nese-language graduate-level courses at reform in university on how socialist Nanjing University. demand economies were imple- menting market reforms. China’s model You first came to Taiwan working intrigued me, and I was awarded a for the Canadian government. Was that scholarship to go to China to learn Chi- a valuable experience? nese and conduct research in my area It was the pivotal experience in my of interest. By the end of the first year, professional development. First, my col- China was engulfed in protests leading leagues and supervisors were extremely up to the June 4 Tiananmen incident. talented, and I learned an enormous We were evacuated and I eventually amount building the foundation of my made my way to Taiwan. future career successes. Second, as the ofﬁce was relatively small in those days, What was it like studying Chinese in I had many opportunities to under- those early days? take work that would usually be given In the late 1980s, Chinese instruction to people with more seniority than for non-native speakers was still in its what I possessed. This allowed me to be infancy in China, with emphasis placed exposed to a variety of different chal- on rote memorization. I ended up hiring lenges and leapfrog in my professional three private teachers (for Business Chi- learning. nese, Pronunciation, and Classical Chinese), as private tutorials were inex- What led to your decision to start pensive in those days. I progressed well your own business? How has the nature

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of your business changed over time? How have students and the edu- assistance of professionals in tune with At the time, I felt I could provide cational process changed in Taiwan current and future job trends. Many students and parents better services during your time here? well-intentioned relatives, teachers, and by establishing my own business In the past, marketing to attract school counselors have a perspective rather than staying in the government. students to go overseas was based on suited for when they went to school, When I started my business almost 25 appealing to scarcity (“Oh, you didn’t and in terms of the current job market, years ago, there was a lack of high- get in? Well I have a solution for you”). it would not be in the least bit useful. level professionalism in the industry, Now it is based on quality and out- but there was a huge demand for stu- comes (“Oh, you got in – well, so did What are the main pluses and dents wanting to go overseas to study. everyone else. What are your future minuses of leading an expat life? At that time there was a less than 40% career options? I have a solution for I am fortunate that I speak Chinese pass rate for students taking the univer- you”). and make an effort to understand and sity entrance exam compared with an Also, new pseudo-education options assimilate into the local culture. This almost 100% pass rate these days. I was have popped up in recent years, such as makes my experience in Taiwan rich lucky to start my business when I did, as low-level work-holiday programs and and rewarding. The Taiwanese are some these favorable factors no longer exist. short-term university exchange pro- of the kindest and most hospitable grams, which could be described as people on the face of the earth, and it What’s been the biggest challenge academic tourism. While these options makes living here quite enjoyable. you faced in your career and how did do give students the chance to go The public services and infrastruc- you deal with it? abroad and experience different cultures ture have developed so much over the When I started my company, it only and languages, they provide little in past 30 years I have been here. They are had three people and not much cap- the way of rigorous academic training, now on par with or surpass most places ital, but a lot of ideas. A major problem which in the long run will affect the I know. we faced was that our competitors quality of the Taiwan labor pool. On the minus side…I can’t really copied our ideas and materials, some- think of anything to note. Maybe the times shamelessly, but we didn’t have If you had one piece of advice for heat and humidity in the summer. the resources to take legal action. The young people here preparing for their only option we had was to innovate education and vocational careers, what How do you like to spend your lei- each new season, and as a result, our would it be? sure time? What do you ﬁnd is the best competitors were only as good as our First, follow your passion. If you way to get “recharged?” last season’s promotions. This drive to aren’t truly interested in the program Exercise, meditation, reading/ innovate has remained within our com- you are planning to take, you will be learning, getting together with friends, pany’s DNA to this day. mediocre, at best. Second, research hiking in the mountains, and learning career options on your own or with the more vegan recipes. Do you have a particular style as a manager? What do you consider to be your main strengths? Any weaknesses? When new staff join our team, I tend to micromanage – you could call it an extended training period. Once staff show they understand their job and the business culture within our company, I let them manage their own time and work duties. Most of my time is spent doing strategic planning, R&D, leader- ship, and mentoring.

What have you found to be the most significant characteristics of the business environment in Taiwan? What are the main ways in which it differs from other markets? Taiwan moves quickly and adapts to change well. Little time is spent crying over spilt milk or trying to preserve archaic and outdated business models (particularly among SMEs).

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Zhutian’s original railway station has been preserved alongside the elevated 2015 structure that replaced it. The 1919 station is modest but quite appealing. As with many buildings that date from the 1895-1945 period of Japanese colonial rule, the foundations and walls are concrete until knee height, but almost everything above – with the exception of the tiles on the roof – is wood. A smaller yet equally historic building a few meters away used to be the railway employees’ bathhouse. Before washing, they had to draw water from the adjacent well. Bicycles can be rented from the coffee-and-souvenirs shop inside the old station building. The town is so compact that within minutes you can be out among farms growing adzuki beans, betel nuts, and lemons. Bastions of Hakka Culture Pedaling or walking to the Tiaodi Village Words-Worshipping Obla- tion Furnace is recommended. Located in Southern Taiwan about two kilometers southwest of the train station, this relic was built so that outhwestern Taiwan is a strong- Hakka pioneers settled in what are now local residents could uphold a tradition hold of traditional Taiwanese Kaohsiung City and Pingtung County. that existed in many Han communities, S culture. Many people in this The Hakka belt runs from Jiaxian in but which appears to have been espe- region still speak “Minnanhua,” the Greater Kaohsiung all the way to Ping- cially strong in Hakka areas. local Chinese dialect also known as tung’s coast, and nowhere is it far from Taiwanese, in preference to Manda- the Central Mountain Range. rin. Yet at the same time, the southwest Travelers dependent on public trans- has a corridor of Hakka settlements portation can explore the south’s Hakka stretching nearly 50 kilometers from belt by taking a train from Kaohsiung north to south. to the town of Zhutian in Pingtung Taiwanese society is a multieth- County, a trip of less than 45 minutes. nic tapestry, and few elements of it Those arriving by car or motorcycle will are more fascinating than the Hakka find plenty of parking spaces. minority. Like Minnan dialect speak- TIAODI VILLAGE WORDS-WORSHIPPING OBLATION FURNACE ers, they trace their ancestry back to China. A distinct subgroup within the Han people, their unique language and customs crystallized as they moved en masse from central China to the south in a series of migrations between 1,600 and 400 years ago. During the long reign of Kangxi (1661–1722), the Qing emperor who oversaw the incorpora- tion of Taiwan into his empire in 1684, Hakka families began migrating to the island. Now, around one in seven Taiwanese identifies himself or herself as Hakka. Adept at converting foothill wilderness into productive farmland, many ZHUTIAN RAIL STATION

觀光

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Showing their profound reverence for learning and literacy, villagers gathered up any paper on which words had been written or printed. These scraps were then carried in special baskets to a dedicated site and solemnly consigned to the flames. The tower-like furnace at Tiaodi (built around 1930 and about six meters high) is no longer used for this purpose, but it still makes for good photographs. Zhutian’s most interesting street is Sanshan Road, which gets its name from the temple at number 63. The Sanshan or Three Mountain Kings Temple is devoted to a trio of deities seldom worshipped by non-Hakka

people. SANSHANG TEMPLE Numbers 144 to 168 on Sanshan Road together form a sprawling resi- parasols of various sizes, often deco- dential compound which belongs to a rated with images of birds and flowers. clan sharing a common surname. With Painted-to-order versions can be the passing of generations, owner- completed in about a week for shipping ship has been divided and subdivided. direct to your home. Traditional blue Some parts have been modernized, ladies’ tunics are another keepsake. while others remain prime examples of The Meinong Hakka Museum intro- vernacular architecture. The chamber at duces the town’s history and culture. the very center of the compound houses The building’s unusual shape was the clan’s ancestor shrine. inspired by the hundreds of tobacco- No railway line serves Meinong curing sheds that once dotted the in greater Kaohsiung, but buses are landscape in the area. Tobacco farm- frequent and convenient. Unlike ing powered the local economy between TOBACCO-CURING SHED Zhutian, Meinong is well and truly on the 1930s and the 1990s, and several the tourist map, so international visitors disused curing barns are still standing. of the Council of Hakka Affairs (http:// may prefer to arrive on a quiet week- Taiwanese people will tell you that www.hakka.gov.tw). On the various day, rather than a busy weekend. when you go to Meinong, you should “Food & Recipes” webpages, you will Meinong’s written history began enjoy bantiao. These thick white find instructions for more than a dozen in 1735, when a pair of brothers noodles are highly traditional in that dishes. The Council is a Cabinet-level surnamed Lim led a band of pioneers they are made from local rice flour. In agency that promotes Hakka culture to settle this well-watered district. Over contrast, most of the noodles eaten in and language, and its website contains time, the population grew to 40,000 Taiwan in the past half century have a great deal of interesting English- people. It is said that even now 90% of been made from imported wheat. language information about Hakka them are Hakka. Fried with slivers of pork and carrot, history and festivals. In the early part of the 20th century, or boiled and served in a soup with a To learn more about Zhutian and the making of hand-painted oil-paper little meat and a few greens, a portion other parts of Pingtung County, go parasols became a local industry. Long of bantiao goes down very well after to the Pingtung Official Travel Guide before souvenir-hunting tourists discov- a morning spent exploring this quaint (www.i-pingtung.com). Meinong ered them, these gorgeous umbrellas little town and its bucolic hinterland. is one of the places covered by the were popular gifts for newlyweds. Another common dish in Meinong Kaohsiung City Government Tour- Auspiciously, the Hakka word for paper (and Hakka restaurants islandwide) is ism Bureau Travel Site (https://khh. sounds like the word for children. Also, kejia xiaochao, a stir-fry that brings travel). For additional informa- the word used to describe a parasol’s together pork, squid, and dried tofu. If tion about Taiwan, visit the Tourism roundness has the same pronunciation you find you enjoy the Hakka cuisine, Bureau’s website (www.taiwan.net.tw), as the one for completeness, so these you can learn more about it – and even or call the 24-hour tourist information items came to symbolize family unity. try to recreate some delicacies at home hotline 0800-011-765 (toll free within The town’s souvenir shops stock – by going onto the multilingual website Taiwan).

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