Chapter 1104 The Real Reason

Rongchang chose to settle in China for his own reasons. The most important point is that Taiwan's investment environment has changed significantly, which has made Wang Rongchang, a wealthy entrepreneur, feel some crisis. In addition, the growth of investment in China is much higher than that in Taiwan, which has made him think of moving to China. As for the bullying he suffered from the Democratic Progressive Party, it was just an excuse to stay out of it.

The most important change in cross-strait relations was in 2000. During this year, Taiwan had a political party rotation. The former ruling Kuomintang lost to the Democratic Progressive Party, which was only established for 15 years, in the Taiwan regional leader election and lost power.

After the DPP's A-Bian government came to power, during its term of office, it took the lead in ideology and continued to provoke the mainland authorities on the other side of the strait, and constantly set up obstacles on economic and trade issues, which led to a crisis situation between the two sides of the strait and frightened many investors. In addition, the current major international political and economic publications regard Taiwan as a very likely conflict zone.

In fact, after A-Bian was elected as the leader of Taiwan, both China and the international community had expectations for him.

Supported by the concept of "deepening Taiwan and expanding global presence", the Chen government abandoned the "patience and caution" of the "big six" economic and trade policy during the Lee Teng-hui period and formulated a "big six" economic and trade policy of active opening and effective management, which increased his public support rate during his first term.

Especially at the end of last year, Taiwan and China joined the "big six" at the same time. Chen Shui-bian announced the implementation plan for the adjustment of cross-strait economic and trade policies at the beginning of this year, further relaxing the restrictions on capital and technology-based industries' investment in the big six. At the same time, it also opened up the island's investment market to the big six, such as towels, hairy crabs, imitation fabrics, clothing, and even real estate, etc., which can enter conditionally.

This policy change has prompted Taiwan's high-tech industries such as the fourth, the lowest-end products of the industrial chain, peripheral industries such as parts and components, monitors, and low-end industries such as mobile phone manufacturing to move to the big six.

At the same time, investors who are optimistic about cross-strait relations have also begun to enter Taiwan, hoping to share the benefits of Taiwan's rapid economic development.

However, in the recent stage, in order to avoid Taiwanese enterprises from being overly immersed in and dependent on the hotbed of the big six market. Ensure the subjectivity of Taiwan's economy and reinterpret the international thinking of "deepening Taiwan and expanding global presence". The Chen government changed its economic and trade policy towards the Greater China from active opening and effective management to active management, effective opening and strengthening management responsibilities.

Under this policy change, Taiwan's agricultural products will no longer be exported to the Greater China on a large scale, which has directly affected the vitality and livelihood of Taiwanese farmers, causing voters in central and northern rural areas to abandon the DPP government. This policy change of the Chen government has put Taiwan in a crisis of being marginalized by the globalized economy.

In Fan Wubing's view, the approach of the Chen government is actually very unwise.

According to international investment theory,

the more investment in parts, the greater the proportion of repurchase and resale of overseas subsidiaries, which is consistent with the investment situation of Taiwanese capital in the Greater China during the Lee Teng-hui era.

However, in recent years, among the sources of components and semi-finished products supplied by Taiwanese businessmen in the Greater China region, Taiwan's products account for nearly 50%, making the Greater China the largest source of Taiwan's foreign exchange surplus, which has also become the cause of the imbalance in cross-strait economic and trade relations.

The raw materials, components and semi-finished products resold by the Greater China also help Taiwanese companies reduce operating costs when processing these high-tech products locally.

However, the Chen government's restrictions on Taiwanese investment in the mainland will prevent Taiwanese capital from obtaining low-cost raw materials from the mainland, thus losing its competitiveness in international marketing.

With Taiwan's accumulated technology, management capabilities and internationalization, as well as the advantages of language, culture, and distance with the mainland, it can still attract other European and American companies to cooperate with Taiwanese capital to jointly set up production bases or explore markets in the mainland. However, the Taiwanese government has repeatedly obstructed the upper limit of Taiwanese investment, allowing European and American companies to directly leave Taiwan and enter the mainland market directly. This has made people of insight in Taiwan have a sense of crisis of Taiwan being marginalized in the past few years, losing the opportunity to play a key role in the global division of labor system, and even hitting the confidence of companies to stay in Taiwan.

Because of this, international investors have also lowered their expectations for the effect of investment in Taiwan, which has aggravated the crisis of Taiwan being marginalized.

The feeling of being marginalized is very bad, which means that Taiwan has lost many opportunities for development.

The Chung-Hua Institution for Economic Research in Taiwan has conducted a survey and analysis on the willingness of investors on and off the island to invest in Taiwan. There are some factors that affect the expected effect of domestic and overseas investors on Taiwan's investment environment to varying degrees, such as the stability of cross-strait political relations, the party color of the Taiwan government and the degree of political intervention in enterprises, the degree of openness of the Taiwan government to the economic and trade policies of the Greater Bay Area, the market demand for products on the island, and the availability of talents, etc.

From the importance of these factors, it can be seen that the stability of the political economy on both sides of the Taiwan Strait actually profoundly affects investors' expectations and confidence in Taiwan's entire investment environment.

Whether there are direct flights between the three links. It also affects investors' consideration of the cost of goods going back and forth to Taiwan, because Taiwan, as the world's factory, produces low-magic and high-quality goods for various regions around the world. As a deep processing, logistics and transportation, and R&D center, Taiwan. Every time the goods are repurchased or sold back to Taiwan from the Greater Bay Area, the transportation cost must be carefully considered, and whether there are direct charter flights is the main factor that profoundly affects investors' costs.

As for the island's own tax rate, the difficulty of acquiring land, the ability to supply high-quality talents, product consumption capabilities, the degree of legal and regulatory restrictions, and government administrative efficiency, these are all issues between the government, the private sector, and investors to find a balance of interests. Compromises are all matters that can be negotiated and resolved on the island. This depends on whether the ruling government has economic acumen, whether it uses ideology to deeply intervene in economic affairs, and whether it is broad-minded enough to understand the political and economic issues on both sides of the Taiwan Strait. The stability of the relationship determines the future and destiny of the island's economic development, as well as whether it has an international outlook and international thinking so that it can find the key factors that affect foreign investment in Taiwan.

Seriously. A ruler with great wisdom should see what are the most critical factors that determine the quality of the local investment environment, instead of putting the cart before the horse and strengthening the blessing and improvement of side factors. So that the decisive factor is ignored.

Taiwan's investment environment is affected by cross-strait political relations and the party affiliation of the island's rulers. This maximizes the effect of the superstructure's reaction on the economic base, so that slight changes in the cross-strait political situation and the island's Any disturbance in the domestic political situation will greatly affect the rise or fall of the weighted index of Taipei's stock market. It will also affect every foreign investment rating of Taiwan's investment environment. It will also affect the island's people's confidence in Taiwan's future and their consideration of whether to The decision to move the family away from Taiwan.

For example, entrepreneurs like Wang Rongchang, who have important influence on the island, all moved to the mainland to settle down at this time, which can explain the problem. At least it can also explain the unpopularity of the A-Bian government, which hinders their ability to move to the mainland. The financial path of domestic industrial and commercial colleagues has caused a lot of complaints and people's hearts have turned away.

Last year, the output value of Taiwan's chip industry, which Wang Rongchang is most concerned about, dropped by nearly 30% from the previous year, to about US$16 billion, falling behind South Korea. Taiwan's chip foundry supply has dropped from 77% of the world's supply in 2000 to 73%. This shows that it is losing its former low-cost advantage in the face of the increasingly open motherland.

Some data also indicate that sluggish global demand was the main reason for the downturn in Taiwan's chip industry last year. The poor sales of chip designers and integrated device manufacturers around the world have led to a reduction in the production capacity utilization of Taiwan's chip foundry suppliers. Oversupply is the main reason for the downturn in Taiwan's memory industry. Memory chips have always been It is the focus of Taiwan's entire chip industry and can account for a quarter of the market share, so this has a great impact.

Since the overall prospects of the chip industry are still weak, some research institutions have also concluded that this part of Taiwan's market will only see slight growth this year, but will not achieve much success.

But the reason that prompted Wang Jianchangxun to make the decision to move to the mainland was another hidden secret.

In the subsequent Panasonic exchange between Wang Rongchang and Fan Wubing, Wang Rongchang provided a very important piece of information, which was that TSMC's Zhang Zhongmou planned to enter the mainland market and build an eight-inch wafer fab.

"Zhang Zhongmou?" Fan Wubing was stunned for a moment, and seemed to think that the name sounded familiar.

"It is Wang Rongchang, the boss of TSMC, who is not too surprised that Fan Wubing is not familiar with Zhang Zhongmou. After all, Fan Wubing has always been committed to high-end routes. He does not know much about things in Taiwan, so he does not Would you mind giving Fan Wubing a more detailed explanation?

It seems inappropriate to say that Zhang Zhongmou is the boss of TSMC, but since Zhang Zhongmou is the founder of TSMC, no one would object. In fact, Zhang Zhongmou has already played an important role in the chip industry in Taiwan. status.

"TSMC is the world's largest wafer foundry. Many investors have made a lot of money investing in TSMC. I bought about NT$4 million in TSMC stocks five years ago as a long-term investment. The current market value is about the same. There are also NT$300 million, which shows that TSMC is a very successful company," Wang Rongchang said to Fan Wubing, "At the end of January last year, Zhang Zhongmou, who was already 70 years old, and his junior, who had been in love for 15 years. The marriage of the many-year-old Miss Zhang Shufen has also become a very sensational news on the island. "

"Oh" Fan Wubing nodded, thinking that obviously this old man is also a very interesting person, "So, are you worried that Zhang Zhongmou will come to the mainland exhibition and steal your limelight?"