Fewer Chinese Tourists

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

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