Who Can Believe That Taiwan’s Eldorado Is China?

Since one year, it’s clear for the observers that Taiwan (the administration in charge)  is putting all its eggs in the Chinese basket.

At the beginning, it was quite discreet but now, it’s totally obvious.

Even state-owned companies are joining the move.

The state-owned Taiwan Tobacco & Liquor Corp (TTL) ignored the World Games in Kaohsiung and gave just NT$400,000 (about USD 12,000) to the Deaflympics in Taipei.

It seems to be official now (HERE) TTL will sponsor the Asian Games in Guangzhou (China) in November next year.

How mush will be given?

The announced figure is 100 million Yuan (about USD 15,000,000)!

…15 million American dollars… Taxpayers’ money…

The official reason is to promote “Taiwan Excellence”. Obviously, they are very selective when it comes to choose which “excellence” must be promoted. Not even a cent was given to the Taiwanese golf champion who tried earlier this year, to host a Ladies Professional Golf Association (LPGA) tournament in Taiwan.

If China is involved, the selection seems more simple for them.

But Taiwan needs more than China.

On November 9, Derek Scissors from The Heritage Foundation published a memo about it (HERE).

Some interesting excerpts:


Taiwan’s economic strategy must encompass other fundamental needs as well: internal economic restructuring and the cultivation of new and dynamic foreign relationships beyond the Straits.

As an investment, China is moving from a "growth" stock to a "value" stock. In terms of raw growth, the days of 14 percent GDP gains in the ’90s and 12 percent GDP gains earlier this decade are gone, to be replaced (after the post-crisis bounce) by long-term growth of about 8 percent annually. And that is if all goes well.

Specifically, the PRC’s successful globalization means there are fewer opportunities left for Taiwanese companies. In the 1980s, the mainland desperately needed intermediaries to connect more fully to the outside world. That is no longer the case.

Beyond China, a central Taiwanese motivation in negotiating ECFA is to secure access to trade pacts involving the Association of Southeast Asian Nations (ASEAN), with which the island has considerable economic ties. But there is no guarantee, even with an ECFA, that China will tolerate ASEAN extending such pacts to Taiwan. Further, the Taiwanese economic relationship with ASEAN shares the critical feature of the cross-straits relationship: a current lack of dynamism.

Other options should therefore be cultivated. In particular, Taiwan should seek partners poised for a period of especially rapid growth, better positioned to achieve rapid gains from fresh globalization, and in greater need of Taiwanese technology and service industries.

An obvious candidate is India.


  • Taiwan should undertake a set of domestic economic reforms aimed at spurring efficiency and growth prior to, or coincident with, the implementation of steps toward more open cross-straits trade and investment.
  • Taiwan should ensure that its regulations, taxes, and international economic agreements do not artificially divert trade and investment toward the mainland or any East Asian bloc at the expense of India or other promising partners.

Cross-straits liberalization is valuable, but it is only one arrow in the quiver. More needs to be done to bolster Taiwan’s economic future.


So obviously, the key word is “strategy”.

Putting all the eggs in the Chinese basket cannot be called a strategy.



3 Responses

  1. To answer the question of your title, some KMT core members believe that China is the only solution to all of Taiwan’s problem, but I am sure that many KMT members have some doubts while the majority of the population would prefer to see more diversification of solutions other than putting all the eggs in one basket.

    If the taxpayers’ money could be spent by the TTL this way or in Ma’s annual health check-up or in Confucius temple in Taipei (http://tktw.blogspot.com/2009/10/another-unfair-roc-judgment-and.html), it is clear to Taiwanese what they should do so their remitted taxes will not be wasted to fund these “projects” or to pay these government officials’ salaries.

    First they must not support the KMT or the independent (breaking-off from the KMT) candidates in the upcoming local election, then, they must consider to remit taxes only to the local government that serve their needs and then several county governments should form an alliance to become a more powerful negotiation entity.

    The irresponsible LY must be punished by the people who elected them, otherwise, Taiwanese can only live with the consequence of their inaction, leaving huge debts to the next generation.

    Just a brain-storming thoughts…

  2. @ Αλισον
    Maybe when people start to wake up, it will be too late.

  3. Sorry to drop by again because the ending bracket for the link I provided earlier caused the problem of not taking readers to the page:

    Here is the link again:


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