Rethinking g Taiwan’s Strategic g Position Following The Global Economic Crisis AmCham Special Luncheon A August t 21, 21 2009
Paul S. P. Hsu Chairman and CEO, PHYCOS International Co., Ltd. President Epoch Foundation President, Adjunct Professor of National Chengchi University
An Overview of Taiwan Taiwan’s s Economic Development from 1950’s-1970’s
1950’s: • Import Substitution 1960’s: • Import Substitution Continues • Export E tO Oriented i t d Economy E 1970’s: • Export Promotion Continues • Emphasis on Technology Industry • Promotion of Inward Foreign Investment
An Overview of Taiwan Taiwan’s s Economic Development from 1980’s-1990’s
1980’s: • Promoting Export with Emphasis on Technology Sectors • Promotion of Foreign Investment and Trade Continues • Outward Investment in Less Developed Countries 1990’s: • Promoting Export with Emphasis on Technology Sectors Continues • Decreased Reliance on Foreign Investment • Rise of Outward Investment in Less Developed Countries • Focus on Infrastructure Improvement • Key Role in Global Product Supply Chain • Promotion of Regional Operation Center
An Overview of Taiwan Taiwan’s s Economic Development from 2000-The Future
2000-Present: • Regional Operation Center Yet to Be Realized • Promotion P omotion of Knowledge Kno ledge Based Econom Economy • Promotion of High Value-Added Services to Boost Service and Manufacturing Industry 2008-20XX: • Global Financial Crisis Ignites Global Economic Crisis
An Overview of Taiwan’s Economic Development from 2000-The Future (Cont.)
2010-20XX: • While the world is confronted with new economic challenges, huge economic stimulus arises together with business opportunities resulted from redistribution of wealth. The Future: • Taiwan’s Soft Power, including but not limited to innovation, entrepreneurship, and new business model development, should be understood, utilized, and expanded to consolidate with Taiwan’s strategic value.
Emerging Business Opportunities as a Result of Changes in Social, Social Political, Political and Economic Structure „
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The traditional theories of outsourcing, free trade, and supply chain are under challenge Th rise The i off emerging i market k t economies i with ith sizable i bl population and resources creates new markets based on domestic demands A new business frontier is in front of us and needs new adventurers to explore this brave new world
Inventory Check on Taiwan’s Taiwan s Advantages
Experiences accumulated as a result of Taiwan’s first economic miracle St Strong entrepreneurial t i l spirit i it Global business network Potential for developing a regional capital and financial market Abundant experiences in management of business throughout the Asian markets Taiwan’s soft-power needs to be further identified and studied
Rethinking Future Business Sectors That Taiwan Should Actively Engage
Green Technology Creative Industry and Economy Health Care Industry Agriculture and Food Industry Education and Training Other High-value Added and Knowledge Based Services in Service and Manufacturing Industry dust y
In Search of a Vantage Point for Taiwan in the Future Global Economic Theater
Areas in which Taiwan can play a leadership role A pluralist society Encourage innovation and startups Help emerging market economies grow
Create an Environment for the Private Sector to Maximize Its Potential
A regulatory environment more friendly to private sector’s endeavor p Reinvent the g government to be more service-oriented
A Reality Check on Cross Cross-Strait Strait Economic Relations
Taiwan corporations is one of the largest investor groups in China in terms of investment amount, total investment projects, and diversified industrial sectors. The stat statuss of Tai Taiwan’s an’s regulatory eg lato en environment i onment for fo two-way investments must be revised. The current environment caused Taiwanese firms to set up h ldi companies holding i overseas, to t keep k fund f d outside t id Taiwan, to “encourage” Taiwanese companies to be listed abroad in order not to be marginalized.
A Reality Check on Cross-Strait Economic Relations (Cont.)
Taiwanese business constitutes one of the largest, g , if not the largest, g , and genuine g “private sector” with strong influence on Chinese business and culture.
The Unpredictable Risks
Extreme Nationalism Causes Instability Discontent Over Government Leadership Racial And/or Religious Conflict Military Confrontation Natural Disasters
Thank you!