Financial Times on Taiwan

choi

Sarah Mishkin and David Pilling, Taiwan: Time to Change Gear. As growth stalls and reliance on China grows, the country must reform to preserve its status as an Asian success. Financial Times, Apr 10, 2013.
http://www.ft.com/cms/s/0/1faf59 ... c-00144feabdc0.html

My comment:
(a) There is no need to read the rest.
(b) There is no need to register for this article, though.
(c) Judging online from the format, this article is a full page in print, with a side bar:
Sarah Mishkin, A Social Schism Widens Across the Strait.
(d) The article says, "To Taiwan’s dismay, the Koreans often beat it when it comes to branding, speed to market and R&D spending."

It overstates Korea's capability. Mostly ONLY Samsung has done well, in my view.
(e) The article argues, "Taiwan’s exports have been falling as a share of global shipments since 1993. Back then, both Taiwan and South Korea accounted for about 2.3 per cent of global exports. By 2011, Taiwan’s share had dropped to 1.5 per cent, while South Korea’s had risen to 3.3 per cent."

The figure about Taiwan is misleading. A significant chunk of China's export is driven by Taiwan (Taiwanese-owned, Chinese-owned but using Taiwanese components--such as cellphones or LCD televisions, etc). To the extent some Taiwanese have whined about industry being hollowed out (I am a free trader, and does not care). On the contrary, companies of S Korea make products locally, from the start to the end--rather than assembling those in China.   
(f) The article continues, "Mr Ma’s emphasis on expanding trade and investment links with China has worked to an extent. But many worry that Taiwan is putting all its eggs in one basket. William Stanton, the former de facto US ambassador to Taipei, warned that depending too much on China economically would give Beijing dangerous 'leverage' over Taiwan."

This is the second time I know of that Mr Stanton has criticized Pres Ma's China policy. The previous time--about a month ago, Mr Stanton complained about the Ma administration's defense budget (far below the  3% Ma has pledged before and during his presidency).
(g) names:
(i) Justin SU, president of Hotai Motors
總經理 蘇純興 /和泰汽車股份有限公司
(ii) Mikio Higashiyama  東山 三樹雄

* higashi 東 (n)   (Japanese pronunciation)
(iii) Bowei LEE, chairman of LCY Chemical
李謀偉/ 李長榮化學工業 (LCY being the initials of the founder 李長榮)