Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Thursday, November 11, 2021

Who should Taiwan open for?

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For not quite two years now, Taiwan's borders have been closed to most people. In on-and-off policies, students, resident visa holders, foreign blue-collar labor, businesspeople and others have been permitted to enter...or not. Tourists have been firmly shut out. As the rest of the world (wisely or not) begins to re-open and "live with COVID", there's been debate about whether Taiwan should do the same. 

Some of this discussion has been quite reasonable: allowing students, family members of citizens and residents and people who have accepted jobs are all logical policies to support. Other points have been, shall we say, less trenchant -- for example, the push to let tourists back in. 

So, let me change the tone here and just lay it out. Yes, we should let family members -- especially spouses and children -- of both citizens and residents into Taiwan. Most spouses of citizens can now do so, but family members of non-citizen residents remain barred from entry. This is wrong. Quarantine and contact tracing have been fairly successful -- I see no reason not to let students and people with jobs waiting for them in as well. A special category of visa you can petition for if your situation gives you personal reasons to go to Taiwan can also be made available: for, example, unmarried partners, siblings and other family members.

Tourists, however? No. 

There was a recent article in The Guardian about this, but I don't want to focus on it. The discussion has been going on longer than that, and the attitude is widespread enough to merit a general response rather than a targeted breakdown. 

International tourism is a little over 4% of the economy. That's not nothing. I'm not saying the hotels, restaurants and tour businesses affected aren't important. But let's be honest -- it's a thin slice of what makes Taiwan hum. Even if Taiwan were more of a tourist-dependent place like, say, Bali, I'm not sure I'd be in favor of opening up. At such a small slice of what makes Taiwan go, however? Absolutely not.

Am I personally in favor of giving up a zero-COVID life and risking an outbreak in Taiwan so we can get that 4% or so humming again? No. Why should I? Why should anyone?

I'm sorry, hotels in Kenting, but I'm not  willing to give up the more or less normal life we can now have in Taiwan so that you can get more customers. I am certainly not willing to risk my health for it! I don't think many people are, nor should they be. Your business is simply not as important to me as normalcy in daily life in Taiwan and a near-zero chance of catching COVID -- for everyone who lives here. When vaccination rates rise that can change, but we're not there yet.

Perhaps think of strategies to entice domestic customers to take all that annual leave they're not spending on international travel to stay at your hotels during the week. 

Besides, re-opening for tourism would mean doing away with the quarantine. I suppose borders could be opened but the quarantine kept in place, which would certainly deter tourists but be tolerable to those with reasons to make the trip. However, we're still at the point where it's better to actively discourage non-essential travel, and framing it that way does the opposite. Perhaps in a few months, especially if quarantine capacity could be increased, that would be a conversation worth having. But by the time that happens, we'll also have higher vaccination rates anyway.

Honestly, I'm sick of the quarantine regulations too. We all are. I would very much like to go back to the US to see my family, some of whom I have not seen in person since 2018. My grandmother is 95 years old and I worry every day that things won't get better in time for me to see her again. It's just a sad financial fact that quarantine hotel rooms for my husband and I are simply not financially feasible after a genuinely rough summer. 

But the fact is that the quarantine has helped catch imported cases, and we still need it until vaccination rates are higher. Mandatory 2-week quarantines and international tourism are simply not compatible.

Besides, opening up for tourism would guarantee an outbreak -- for this reason, the entire premise of the argument is flawed. An outbreak wouldn't exactly cause tourists to pour in, would it? It would not only depress the exact sort of inbound travel that opening up would aim to bring in, it would depress domestic tourism too. We know this because that's exactly what happened during the May outbreak. I was in Tainan recently and the B&B owner admitted that from May until the "soft lockdown" ended, allowing indoor venues to re-open, they didn't have a single guest. Now, they have some -- we weren't the only people staying there. A fresh outbreak would mean none.

What's more, the risk such a move would bring would devastate a far greater chunk of the economy than the sliver fueled by international tourism. Business that rely on local custom -- restaurants, shops, cafes, smaller hotels catering mostly to local crowds, even cram schools as much as I dislike them -- all took a hit from the May outbreak. Many closed: the hotel I liked in Taichung which seemed to mostly attract young Taiwanese weekenders on mid-range budgets, the Konica shop I'd use to print out photos for relatives, more than one cafe I liked as well as several restaurants, gone. My own income was briefly torpedoed, as was my husband's, though fortunately at different points.

They didn't close, and we didn't have to dip into savings, because there weren't international tourists. That all happened because the domestic economy was affected. Risk that again for that tiny 4%, which probably wouldn't even reach 4%? No thanks.

I don't think the CECC is being particularly wishy-washy about this, either. It's true that they haven't set clear milestones for re-opening or changing quarantine rules. It's true that they won't state clearly what vaccination percentage will be considered "sufficient". But that makes sense to me: this is literally an evolving disaster, and it's evolving because people are not smart. They hear ignorant takes about vaccines and hesitate to protect themselves and others. They make obviously logically flawed arguments about "re-opening", which brings further outbreaks.

Oh yes, and they complain that "we can't find mayonnaise" -- or something -- when supply chains are disrupted around the world and there is indeed mayonnaise to be had. I have some in my fridge. It's available. I'm certainly not interested in risking my health and life because some guy whined to The Guardian that there isn't enough mayo. Come on.

The virus mutates, it becomes more infections, and all the milestones have to change. 

I don't call an evolving response to an evolving problem wishy-washiness or lack of clarity. I call that being flexible, which is exactly the right way to be. There is some strain, but the whole world is strained. By comparison, Taiwan is not a festering hellhole due to bad policies (though there have been some, I admit). It's stayed pretty good, due to (mostly) good policies.

So yes, by all means let's push the government to consider allowing home quarantine for the vaccinated at some point in the almost-predictable future. Let's push to allow people who should have the right to be here -- family, workers, students -- to be allowed in. Certainly, let's look at further relief as necessary for the worst-affected sectors. If you're able, take some time off during the week and go use those quiet tourist facilities while they're not crowded. Give the hoteliers and tour operators a bit of domestic custom. I'm looking at some trips I can take myself, now that life in Taiwan is closer to normal again.

But no, it is not time to re-open for international tourists. It's just not. 

Sunday, September 19, 2021

The EU semiconductor plan: a case study in ignorance about Asia

Years ago, I came across an anecdote on a popular forum for foreigners in Taiwan, about how someone's family members in their home countries would ask the oddest things about life here -- think "do you have peanuts in Taiwan? If you don't have any peanuts there, we can send you some!" My own dearly departed grandmother once asked why I livd there at all, because "it's not a democracy!" This was in late 2006 -- she'd apparently not heard the news that Taiwan had democratized a decade previously.

These little stories illustrating Western ignorance about Asia don't mean much individually. After all, they're just anecdotes. I make no assumptions about any larger trends they might illustrate. But such anecdotes pop up often enough that perhaps it's worth exploring. I'd like to do that with a short case study -- truly, just something I came across and want to talk about.

Today, I woke up to this: 

 


There's a lot to be said here, especially about the hinky economics of this tweet. That's not exactly breaking news, however, so I'll leave it until the end. First, take a look at some of the replies:









(You can read all these under the original link -- I didn't feel like embedding it all, as too much code makes Blogger weird. This is because Blogger is garbage). 

It's just astounding though: there are one or two replies, including my own, which point out that Taiwan, not China, is the semiconductor dominator. 

But for the most part, people who are against "globalization" and "dependence on other countries" seem to think this dependence is entirely in China, because Ms. von der Leyen said "Asia" and apparently Asia is only China, and maybe Japan. And maybe South Korea if you like K-pop. This assumption also conveniently forgets that the biggest competitors for dominance in that industry are the USA, South Korea and Japan...not China. 

Another writer might take this opportunity to say that fearmongering about China is misplaced, and the result is unfair Sinophobia like this. Obviously, I am against Asian hate and would never advocate for discrimination against Chinese people. That shouldn't even need to be said. But highlighting the threat from the Chinese government? That's pretty much right on target. The CCP is actually evil, they are indeed a real threat to the world, and yes, they do genocide. Any country dependent on a highly necessary export from China, or something like tuition from Chinese students should indeed be worried -- and looking for ways to reduce such dependencies.

This, however, is mostly the result of ignorance. Asia is far away, and China is of course massive and does produce a huge amount of the world's products. So, people will assume when someone like van der Leyen says "Asia", they mean "China". And since China is "bad" (which its government truly is), international economic cooperation is therefore "bad" and that lends credence to the belief that globalization is always "bad". 

This sort of ignorance also means that Taiwan gets ignored. Would these replies, and others who would agree with them, be so angry about international trade if they knew that the largest producers of the best semiconductors were Asian democracies? Why would someone even need to write about "smashing the free world" if you are in fact trading with the free world, and your trade with that free world helps keep much of Asia free?

The liberal democracies of Asia do need international links if they're to withstand the direct threat from China. Taiwan is at the front line of this, as China threatens literal invasion, but South Korea and Japan are well aware of the threat, too, even if it's more figurative for them: China isn't looking to take over those countries directly, they want the modern version of economic tribute from vassal states. 

If you want to support the values of human rights and self-determination, and countries which at least attempt to implement these ideals make the best of the cutting-edge technology that you need, wouldn't the wiser course be to support them?

Is it not simply smarter to buy from countries whose governments are friendly to you, which embody values you also embody, as a way of supporting those countries? 

In fact, it actually helps China to try and undercut its neighbors in Asia. You make subpar chips (sorry Europe, but mostly you do) so you lose a tech advantage. These neighbor countries -- again, friendly democratic states which share your values and stand against China's increasingly aggressive attempts at Asian and global hegemony -- lose your business, which hurts them, and their ability to help you stand against the Communist Party of China. 

How is this in any way a smart strategy?

Engaging in trade with countries like Taiwan, South Korea and Japan is economically more efficient. Militarily, the possibility that you might have to engage with China is reduced because you're supporting all these friendly countries which help contain it. You get the best chips, Xi Jinping gets mad, democratic Asia has a better chance at continued economic prosperity. 

Why the everloving hell would you want to undercut this?

And how can we educate Europeans who assume all of this is about fighting China for dominance, when China does not dominate in semiconductors? How can it be made clearer that Europe's trading partners in Asia, in this particular industry, are not the bad guys? How can awareness of Taiwan be raised -- not only regarding the admirable way it's managed to blast the competition despite being a smaller country, ignored politically by much of the world, but also for its fight for recognition, and the ways in which this fight actually align with Europe's values and interests?

I don't know, but that entire reply section sure was disheartening. Please wake up, drink a nice cup of coffee, and read a damn book.

So, now let's talk janky economics.

Is this the best use of European resources -- to try to build up a 'home industry' in a sector where they lag so far behind? Do they stand any chance of catching up to, let alone surpassing, Asia's semiconductor dominance in a way that makes any economic sense at all? Or would this be a huge resource dump with very little result except perhaps some subpar, behind-the-times chips? Because honestly, when it comes to this sort of tech, countries like Taiwan are 2022 and I'm sorry but Europe is twenty-twenty who?

(That was a bad joke, but forgive me, for I am old.)

And sure, some people would scream that I'm a filthy neoliberal for even saying that. I don't really care, because I don't consider it a libertarian position so much as one that just makes sense. I'm not against building up domestic industry in any given country per se, but this is not exactly like saying "we import all our zippers from China and we should make zippers here so China can't cut off our zipper supply, also they do genocide". One can also make an argument that making zippers domestically isn't efficient, but I'd rather tolerate some inefficiency than support a genocide, so okay.

But these chips we're talking about -- look, I've actually spent time around the people who run these businesses, and I am literally not allowed to say much about that (and won't), so all I'll say is these chips ain't zippers. You need the absolute best on the market to be competitive, and the definition of "the best" is always changing. The chances of Europe actually producing cutting-edge chips fast enough to make all that money worth it is...honestly, I hate to be mean, but it's like Turkmenistan announcing they're going to spend their whole GDP on becoming the industry leader in augmented reality. 

Perhaps that's a bit unfair -- this isn't exactly breaking news, and Europe isn't Turkmenistan. But the overall point remains. From the Financial Times back in July:
 

The question facing the EU as it prepares to embark on this undertaking, however, is whether it ends up squandering large amounts of public money chasing geopolitical ambitions that may not be supported by industrial and market logic. While Europe has world-beating strengths in corners of the semiconductor supply chain, it lags far behind Asia in particular when it comes to making the highest-end chips.

Changing that picture, executives warn, will take years of effort and vast quantities of public money — at a time when governments in Asia and the US are also pouring tens of billions of dollars of subsidies into the sector.


One could argue that the fear here is that China will take over Taiwan, but it still makes more sense to simply support Taiwan, rather than make it easier for China by insisting on building your own mediocre crap, when Taiwan is capable of producing the best of the best. You could help support Taiwan by buying the best from them and recognizing all of the good that comes from doing so. 

Then your constituents, or reply guys, or whomever, might not have such preposterous ideas about how this is all a big fight with China, when it simply isn't.

Saturday, August 14, 2021

KMT (and yes, DPP) hypocrisy and a pragmatic case for vouchers

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A doorway to the green...


There was an interesting Taiwan This Week...this week, where the debates over economic stimulus were discussed with Donovan Smith and Michael Turton.

(That might be the most boring sentence I've ever opened with in the history of Lao Ren Cha, but bear with me). 

The DPP wants vouchers, very much like the ones given out last year where you'd pay NT$1000 and get NT$3000 worth of vouchers in return. The new round would be the same, but raise the payout from $3000 to $5000. The $1000 is likely to be waived for economically impacted, low-income or disabled people, and they seem to have already decided that APRC holders will be included as well as the spouses of Taiwanese citizens, the latter having always been included in such schemes. 

Interestingly, the KMT has been saying the program would be better implemented if cash payouts were offered instead of vouchers. From the Taipei Times:

Since the detection of a local COVID-19 outbreak in May, many restaurants and food stalls have been forced to suspend business, and some have closed permanently, Chiang said.

Individual workers are also struggling, he said, adding that public opinion on a universal cash handout scheme was “clear.”

Two-thirds of people want such a program, he said, citing the results of a poll released on Friday by the KMT-affiliated National Policy Foundation.

The economic benefits of last year’s Triple Stimulus Voucher program, which allowed people to purchase NT$3,000 of vouchers for NT$1,000, were not good, Chiang said.

Moreover, the distribution of the vouchers created “chaos” and increased costs, he said.


Briefly, he's right that individual workers as well as business are struggling, but doesn't provide a clear line of reasoning from that to using cash (there is such a line, but he doesn't appear to offer it). The poll numbers may well be somewhat correct, but he's citing an unreliable poll from an KMT-affiliated foundation, so it's hard to say. 

The claim that the first round of vouchers didn't work is dubious at best: I don't think we know yet whether they worked, but we do know that Taiwan's GDP jumped in the months when they could be obtained and spent, and that Taiwan's overall 2020 growth outpaced China's (well, according to reported data, which is not reliable for China) and was the best in the developed world. We may not know if they helped, but we know they didn't hurt. 

The closest we can come to figuring this out is to look at an earlier stimulus voucher program, implemented by the KMT at the beginning of Ma Ying-jeou's first term. One paper -- the only one I could find in the limited time I have to write this -- claims it had little or no effect (that link goes straight to a download and I haven't checked the reliability of the paper). But, the circumstances were very different. New president in power, no pandemic -- although there was a big economic downturn which arguably slammed Taiwan harder than coronavirus, economically speaking.

Did it create "chaos"? I didn't see any. What chaos? Would you like to be more specific, Johnny? Taiwan was probably the least chaotic country in the world in 2020. What are you talking about?

Did it increase administrative costs? Yes, but I would guess not by a huge amount. Cash would be less administratively burdensome; that's a valid point. But, was it prohibitively so? I don't see any real evidence that it was. 

Here's what's more interesting. I've buried the lede and I apologize. It's a bit rich for the KMT to be banging on about offering cash now. As I mention above that the last time the KMT had power, their economic stimulus program was also voucher-based.

Why are they so against it now, when the Tsai administration plan is just a fancier version of the Ma one? (There are some differences: Ma's plan did not require an NT$1000 payout, and had fewer restrictions on how they could be spent.) 

I'm sure they could come up with some reasons that didn't reek of hypocrisy: that people waiting in line to get the vouchers could cause outbreaks (there was no pandemic in 2008-2009), or that the restrictions make it harder for the working class to use them as they'd like (true enough). But they seem to be going for plain old "forget history, we favor cash and we've always favored cash" politicking over actually trying to make a good case. 

To be fair, the DPP didn't seem too fond of vouchers in 2008 either -- lashing out at the KMT for it -- and yet here they are, doing vouchers. It's almost like the two parties actually agree on a bunch of stuff but just can't admit it for political reasons, even if not everything they agree on is actually a good idea.

It's worth pointing out that they can be hypocrites too, and as a result each side keeps saying the other is wrong, but then recycles many of their ideas anyway.

That said, there's nothing I hate more than bad argumentation (okay, I also dislike late-night half-assed Marxist "analysis", but I can forgive it if the person doing it is otherwise cool). 

If you thought I didn't respect the KMT because of all the mass murder and colonialist brutalizing...well, that's true. But I also don't respect them because even when there's a good argument to be made for whatever they support, they don't bother to make it. They literally just bend over, drop trou and show their whole ass. Administrative costs? You guys are the absolute kings of administrative costs, and you were during your 2008 voucher program too! Individual workers? Good point, but since when has the KMT been the party of the working class everyman, not the "my parents were born in China and maybe reported your parents to the secret police" princelings?

Do they even know how to do politics responsibly? It seems not.

Oh, and the People First Party under James Soong has argued for checks. That's cute. My reaction to this suggestion can be seen in the visualization below:
    

"Checks? Okay grandpa."

 
In a "gossiping over wine voice": Checks! Could you even imagine?

One case for vouchers is that they won't increase inflation. But, I don't think the amount of money would be enough to do this, as Donovan points out on Taiwan This Week. I do think the "waiting in line" aspect could be an issue, as both point out. I do think people can be trusted to use the money in a way that best suits them. However, under Ma, people socked away extra cash and used the vouchers to pay for their regular purchases. So, vouchers don't necessarily solve that problem when you want to stimulate the economy, not bump up people's savings accounts by a fairly marginal amount. 

Frankly, this is probably what the restrictions on what they can be used for are trying to prevent: if you can't use them to pay most bills, but only for consumer goods, you might use them to buy food but you're less likely to save an equivalent amount, and you might be tempted to treat yourself especially if you've had a hard time during the outbreak.

I do tend to agree with Michael that this is just another flashy program covering up the lack of a strong, comprehensive social safety net.

Basically, the question is: what is the goal of the Tsai administration? There are two possible objectives: helping those who've been hard-hit by the pandemic (which a series of relief measures and subsidies also do), or stimulating business and getting people back in stores. Honestly, they probably want to do a little of both.

If the former, cash payments would be the better choice as struggling people would be free to do whatever they wanted with that money, and they know their own situations best. 

If the latter, vouchers make sense. It's the most likely way to push people to go out and shop for consumer goods. It's not a bad goal -- such businesses have been hard-hit, especially restaurants, and the faster they can recover, the more people they can employ who might be temporarily out of work. And it does indeed seem to be the priority. There tends to be an assumption in government here that for the very poor, they can and should turn to family to help them out in times of need. Broke as a joke? Go live with your parents!

That sometimes works, but it often doesn't. It would be better to update our understanding of how family may not be an option for some struggling people.

I would posit, however, that this wouldn't be the same discussion if Taiwan did have a real social safety net. So perhaps rather than arguing over vouchers or cash, we should get on that instead. (It's still okay to laugh at checks though. Checks!) And, of course, the foreign community should have more access to them: it would be better for businesses that cater to the Southeast Asian community for sure if more of them could get vouchers, and it might help rouse more discontent over the fact that many are still being locked in their dorms in an extremely racist fashion, let out for only two hours a day. 

So here is the case for vouchers: If the other relief measures liked above were aimed at helping the needy, and the Tsai administration sees vouchers more as a way to jumpstart consumer spending (which would theoretically lead to renewed employment opportunities -- but only theoretically), then the administrative cost of the vouchers may be worth what they are trying to achieve. I suspect the $1000 payout might be aimed at defraying those costs, or possibly as a psychological impetus to push people to go out and spend them.

However, I have a hard time signing on to that fully, when people who are truly struggling don't have a reliable public assistance option and can't pay their major bills with vouchers. 

But this is the most pragmatic case for vouchers: clearly the KMT is actually fine with them, seeing as they used them too. So, theoretically, this is the most unifying view among people in power, it's just that right now the KMT won't admit it. 

As for me personally? I don't have a strong preference, because I don't think it's the biggest problem. The lack of comprehensive public assistance is. If you put cash in my hand I'd be just as happy with that.

Friday, August 13, 2021

China's Drug War: Coming Soon to a Taiwanese Hospital Near You

                    

Hey look it's an accurate cover photo and you know it. 


If you're wondering where I've been these past few weeks, it's still the same old thing: moving all of my work online means I'm in front of a computer all day, and I just get tired of it. I want to read a paper book or look at something that's not a screen.

I've also been working on that longer project with Brendan comparing every general history book about Taiwan available in English. It took some time, but look for it to be coming out soon.

But, as usual, something got stuck in my head that won't get out. So here we are. 

About two weeks ago, the Taipei Times published this piece on China snapping up the Taiwan distribution rights to almost a third of all new pharmaceuticals. It was a good article, and important warning -- and seems to have been largely overlooked: 

In a report dated Monday, the Legislative Yuan’s Judiciary and Organic Laws and Statutes Bureau decried the arrangement as unreasonable.

“Requiring South Korea to purchase vaccines through a North Korean distributor or Israel to go through a Palestinian firm would be preposterous,” the report said.

Granting exclusive distribution rights in a nation to its political and military adversary is ethically problematic, it said.

Due to the antagonism and mutual distrust between the two nations, it is highly unlikely that they would complete a contract and instead use it as a tool for political manipulation, it added.

This would further hinder transactions and jeopardize the right to healthcare of the “represented country,” the report added.

I would switch Israel and Palestine in that analogy, personally, but the point holds. This is terrifying, and you should be terrified. It is not crisis-mongering. It's an actual crisis in the making. 

Imagine a future in Taiwan where about a third of new drugs on the market are difficult to get or simply not available because China holds the distribution rights, but it would be political suicide to buy from China (not to mention playing directly into CCP hands).

Now, expand that thought: not just you at the doctor's office unable to get the drugs you need. Imagine millions in that same position, and how angry they'd be. Imagine the political crisis that would create: we already saw it with the BNT vaccines. Visualize that, but with a huge percentage of all new drugs on the market. 

Consider as well the opportunities for malicious actors and disinformation purveyors, populists riling up the people who are rightfully mad because they can't get medicine, sharpening that public anger into a poison spear and throwing it at exactly the wrong target. Not China, whose fault this is, or even those in Taiwan who insist China can be dealt with reasonably and warmer relations are possible without undermining one's own position. Rather, the protests would be directed at those trying to protect Taiwan from Chinese interference and annexationism -- the people who best understand that Taiwan needs to stand up for itself. 

Think of the destabilization: a KMT that wins, and caves in to buying medicine through Chinese channels, whose own supporters voted them in so that they could do this, and a furious opposition. Or DPP in power, but furious KMT voters who blame the DPP, not China, for the existence of the problem. Imagine a DPP who cannot cave (it would be political suicide with their own base) but has trouble withstanding that kind of pressure. It's not hard to imagine, because that's already what they do! 

With a segment of the population -- albeit a shrinking one -- who still does not understand that it is impossible for Taiwan to deal with China without China trying to undermine the country, it would be...well, a crisis. It would be difficult to have a functioning democracy in a country who can't access a huge portion of the latest medicines.

Let me make it worse. Consider as well that there are always two players in these games. China's gonna China, that's how the CCP rolls. Subjugation-happy assholes to the last. But those pharmaceutical companies agreed to those terms. They didn't see anything wrong with selling the rights to the Taiwan market to Taiwan's biggest existential threat. 

Taiwan watchers have been talking a lot recently about the good press and stronger support Taiwan has been getting. I admit, I've been glad to see it too. But while we've been celebrating, entire vital sectors of the economy have been quietly turned against Taiwan by the CCP. And those international entities let it happen. 

You might not be mad about the airlines caving to China. Perhaps you're not mad about the major language proficiency tests doing it (still, fuck IELTS). Maybe you couldn't work up sufficient anger over exclusion from international organizations, "Chinese Taipei", the end of actual Taiwanese representation in the Taiwanese representative office in Hong Kong or the BNT fiasco. In a lot of cases, it's a name change, purely aesthetic, or it's one medication. Those international organizations are pretty useless sometimes, it seems.

But all of those slights, all of those insults, all of those successful attempts to undermine Taiwan: they were always leading up to bigger, bolder plans for forced subjugation. 

That's what this is. 

I hope you were mad before. If not, I hope you're furious now. 

This proves without a doubt that the Shanghai Fosun deal with BNT (Shanghai Fosun, as a large company in China, is ultimately beholden to the CCP) was not an unfortunate accident, an oversight, a one-off. It was a direct attempt to harm Taiwan, and BNT let it happen. They agreed to it. Everyone who said it wasn't a big deal, that the DPP were wrong for declining to consider working with Shanghai Fosun, that the distribution rights were above board and negotiated in good faith, not an attack on Taiwan...you were wrong. Your opinion was bad and you should feel bad. 

I've said it before and I'll say it again: the weird workaround of letting Terry Guo, TSMC and Tzu Chi buy the doses was not some odd accidental outcome. I have thoughts about TSMC's role that I won't share, and not much of an opinion on Tzu Chi (though I dislike religious organizations generally), but I stand firm on this: Terry Gou is a gamepiece. Perhaps he knows it to some degree, but I'm not sure if he realizes the extent to which is is a CCP pawn.

It also proves that the only way to deal with China is to refuse to play. If Taiwan bends over and accepts drugs through Chinese distribution channels -- as the torch-and-pitchfork types are likely to scream that the country should do -- then it'll be more drugs next time. Then something else. And another thing. And soon the CCP plan to get its claws inextricably into Taiwan will actually have worked. 

There is no way to talk to China, no way to negotiate, no way to warm up relations. They will always try this. They will never come honestly to the table. They will always try to undermine you. It's like trying to have an honest relationship with a narcissist, abuser or compulsive liar. It's not possible. If you take this punch, if you let that comment slide, if you try to placate them, they only escalate. It never works. 

The only way to win is not to play. 

Finally, this proves that a basic understanding of Taiwan among the general international community actually does matter. I've heard people say that only policymakers matter, only politicians, only officials. There's no point in trying to reach a wider audience of people who are not in a position to effect change, because, well, they can't do anything. 

That attitude is wrong. 

You know who's sitting in that "general audience" section? Businesspeople. Talent that Taiwan might recruit. Several million people who might intentionally choose a Taiwan-made product over a Chinese one. Writers and newscasters who don't focus on Taiwan normally but at the Olympics, might take a stand and just call Taiwan by its name, rather than Chinese Taipei. Creators who might re-think what peddling their products in China will ultimately cost them, and ask if it's worth the market access. 

And, of course, another important segment of that audience: pharmaceutical executives

Not the people who are considered particularly important in Taiwan discourse. And yet, looking at those numbers, I sure do wish more international pharma execs were more knowledgeable about Taiwan. I wish we'd tried harder to reach people like that: not just in the drug industry, but all industries. Because today it's medicine, tomorrow it'll be something else. It always is.

Perhaps it wouldn't make a difference. Perhaps they'd have signed away Taiwan's distribution rights to its biggest enemy regardless. Perhaps there is nothing one can do to make them care. 

But perhaps not. Perhaps actually knowing what one is doing might cause one to choose a different option.

You honestly never know.

This is a great reason to sign my petition for Last Week Tonight to do a show about Taiwan, by the way. The whole point is to reach a general audience. Now available in Mandarin!

Saturday, March 6, 2021

The Freedom Pineapples have helped, but Taiwan still gets erased in international media

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Pineapples aren't actually at their best this time of year, but it's been a good week for wearing this necklace I picked up awhile ago.


First, a quick explanation for why my blogging has trickled off in the past few weeks: I've taken on a project as one very busy cog in a massive research project. If (hopefully when) the results are published, I'll talk about them more. For now, I'll just say that there's a relationship to some of the topics that come up in this episode of Taiwan Context, where I talk at with Donovan Smith about issues in English language education. Perhaps my Facebook friends have seen that I've been hopping around the country -- multiple trips to Tainan and Hsinchu, I'm writing this from Kaohsiung, and I'll be skipping through Taoyuan next week. It's all related, and I'll be excited to share more when I can.

However, this means I spend a lot of time in front of a computer, even when traveling. It's tiring to the eyes and can cause throbbing headaches if I overdo it. After all those hours of writing up long research notes and checking transcripts, I just don't have the eyeball stamina to blog. I'm sorry, and I do expect the pace will pick up soon. 

That aside, let's talk about the good and the bad in the international media regarding Taiwan, starting with the bad so we can savor the good as a sweet, tart dessert. 

After dinner with a friend, I flopped down on the couch in my Kaohsiung hotel to drink tea and channel surf as I don't have a television at home. Not finding anything satisfyingly dumb like one of those wedding dress shows, I settled on DW after flipping past several monks, costume dramas and shopping networks. I let it play in the background as I loafed around, and then promptly sat up and turned it off when I heard this

China was the ONLY major economy to see growth last year.

DW made a similarly clumsy mistake in October, with this:

China is the only industrialized economy that has seen growth in 2020.


That second segment isn't entirely bad, as one commenter calls Taiwan a "country" later on. The point stands, however, that the statements above are simply wrong. 

Assuming one can believe any statistics from China -- and that's a gamble I don't make as a rule -- Taiwan's economy still grew more than China's in 2020 and the country is experiencing a tsunami of demand for semiconductors that frankly, only Taiwan has the technology to make well and fast enough. 

Taiwan is an industrialized country, moreso than China. China's economy highly uneven across every metric I can think of, and while I'm no economist, being a massive economy (#2 in nominal GDP) with mediocre per capita rankings (#71, #79 and #66 in nominal GDP per capita, PPP per capita and GNI per capita respectively) doesn't look great. Taiwan can't beat China on GDP, but on every per capita ranking it comes out better: nominal GDP per capita at #36, GNI per capita at #33, PPP per capita at #20. 

It's just not accurate to say that China was the "only" industrialized country to see growth in 2020. Taiwan's economy not only grew, it beat China for the first time in decades. 

As for being the only "major" economy to grow, it's true that China's economy is bigger than Taiwan's, and China is in the G20 while Taiwan is not (SCMP at least got this right). But being in the G20 is not the final call on what counts as a "major" economy. Can we really say that Country #20 (that would be Turkey or Switzerland, depending on whom you ask) is "big", but Countries #21, #22  and #23 (which is just about where Taiwan falls) is definitively not? 

If you're going to use a general term like "major" -- as opposed to a specific one like "G20 member" -- then it's erasure of Taiwan to ignore the fact that the 22nd largest economy in the world experienced more growth than the one that keeps making the news for growing. (Notably, several developing countries also experienced economic growth, including Guyana, Ethiopia, Egypt, South Sudan, Rwanda and Turkmenistan. The presence of countries on that list which are also facing devastating famine or generally not considered well-governed should demonstrate that growth isn't the only marker that matters). 

China helped COVID19 spread due to its initial cover-ups, yet its economy grew. Taiwan did an excellent job of handling COVID19, and its economy grew more than China's. But China gets the DW shout-out and Taiwan doesn't? This shows we have a long way to go to press for better international media coverage of Taiwan. 

By the way, If you're wondering why I'm crapping on DW and not any of these other news outlets that published the same garbage, it's because I saw it on DW first. But they are just as culpable for bad reporting that erases Taiwan on the global stage. 

In fact, it feels even more sinister than that: if you want to write a story that showcases China's 2020 economic growth and makes it sound like it's the only country to accomplish this, you need to add a modifier in order to do so with even a shred of plausible deniability. So you choose an imperfect one -- "industrialized" or "major" -- allowing you to safely ignore Taiwan and a group of mostly-African developing countries. But you got your nice headline that showcases China, a narrative which I suppose gets more eyeballs and clicks than a dive into why some countries' economies grew in 2020 but others didn't. 

In any case, your priority isn't thoughtful reporting, it's creating a narrative that will get views. It's pushing a "China" story for the sake of pushing a China story more than it's an objective look at what's going on with global economic growth.

That feels manipulative: it leaves readers and viewers with a sense that China is somehow special and unique, when it's not. It denies viewers the chance to learn about and from the African experience with COVID19 and allows you to go right back to ignoring Taiwan, which the international media would usually prefer to do, given the choice.

And now for the dessert

It's not all doom and gloom, however. Bloomberg, SCMP and Nikkei were smart to point out that Taiwan actually outpaced China in 2020, although that's a small number of international media that got it right while outlets like CNN, the Wall Street Journal and BBC mucked it up. 

What did garner more attention? Freedom Pineapples! And to a similar extent, the fact that the whole world seems to be finally realizing that they need Taiwan's semiconductors, so Taiwan has mattered all along. 

As uncreative people around the world throw up their arms and say "well we have to give in to China's demands because we absolutely must trade with them", Taiwan got hit with an import ban on pineapples for some pretty dodgy reasons, and fought back through a government-encouraged campaign for Taiwanese to buy their own pineapples, to the point that domestic pineapple sales have closed the gap in just a few days. 

Riding on Australia's Freedom Wine campaign, Taiwan is helping to show the world that it doesn't need to just lie down and take China's weaponizing of trade. Of course, in 2018 Palau was already pointing us in the right direction. 

Just a few years ago, Taiwan would have freaked out at China suddenly shutting down imports of any given product. The DPP would have yelled about it, and the KMT would have used it to stump their "reasonable" platform that we have to be "friendly" with China so they won't pull these sorts of moves, which is about as likely to be successful as shining the school bully's shoes so he won't shove you in a locker. Now, the DPP says "okay, we'll buy our own damn pineapples", and the KMT has no choice but to get on board. 

At this point, China might want to meditate over how and why pineapples are what definitively proved that Taiwan is neither going to allow itself to be bullied nor annexed.

I don't know that the "let's buy it ourselves" model would work on a large scale, but at least it shows the world what it really means to be on the front line of democracy standing up against authoritarianism -- that and all the jet scrambling. It shows that there are avenues for fighting what looks like an impossible foe, and it's possible to simply refuse to be bullied. It shows that China's strategies can be made to backfire spectacularly, simply by refusing to play their game. And when it comes to those aforementioned semiconductors, it shows that a bullied country like Taiwan, erased internationally and treated like crap by international organizations, can still build a stupendously successful industry. 

But even better for Taiwan, if the country can't get the international media attention it deserves on things like, oh, handling both COVID19 and the economy better than China, then at least it can show the world how to effectively stand up against a bully, while reminding itself that it doesn't need to shine China's shoes. 

It's not enough to counter the damage done by all of the bad journalism cited above, but it's something, and if Taiwan keeps finding creative ways to bolster its own identity while telling China to buzz off, perhaps more people will start to take notice. 

Monday, September 28, 2020

The CCP is a black hole that makes me question my own values

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This is a piece of street art I found - the artist is Mr. Ogay


Last week, I began a blog post about Chinese apps WeChat and TikTok being banned from purchase in app stores in the US, but never finished it. Partly I just couldn’t maintain a focus as it’s not clearly related enough to Taiwan, my core writing topic, and partly I felt like everything I had to say on the issue tapped into a deeper question:

In so many areas where China is concerned, I find myself going against my political instincts and nature to support certain actions and policies that, generally speaking, I would otherwise oppose. Why is that? 


For example, I am generally against banning apps or access to communication platforms. However, in the case of WeChat and TikTok, I’m ambivalent, with a slight lean toward supporting the ban (despite despising Donald Trump’s administration with not just my bones, but my guts, skin, blood and waste matter). 


I’m not moved by arguments that it denies ‘freedom of speech’ to some communities; freedom of speech is not available on WeChat or even TikTok thanks to Chinese censorship. The only difference is that in the US you may become a person of interest with your post deleted. In China, your post being deleted is the best possible outcome; you could have your account suspended or be shoved in a truck and carted off to a gulag. I’m slightly moved by the argument that it cuts off people in China from loved ones abroad, but ultimately that’s China’s problem: they’re the ones that made it impossible to use just about any other platform (that they don’t control). So why are people mad at the US, not China, for a situation China created? It makes about as much sense as admonishing Taiwan for “provoking China” or “raising tensions” when China is the one creating the tensions and choosing to react with anger. 


I’m especially not moved by the argument that corporate surveillance of our data in other countries is just as bad as CCP surveillance on WeChat. Sure, it sucks, but it’s not equivalent. FaceCreamCo may be harvesting my data trying to sell me face cream, and I hate that, but FaceCreamCo isn’t going to cart me off to a literal gulag if I speak out against this. Even politically, whatever the US government may be doing with our data, we are able to write about that, debate it, disagree with it, insult our leaders — and generally speaking, we can expect that we won’t be threatened and we certainly won’t end up in a re-education camp or be dragged out to a field and shot. (There is a social media moderation problem which censors women and people of color but not white men, however.)


That alone shows you the two issues are simply not the same and should not be compared this way. The reason is simple: what else is the US supposed to do? Allow apps that are basically thinly-disguised hostile government surveillance and malware to operate within their borders, potentially harming people in their country, including their citizens? What’s the better option here?


Anyway, this isn’t the first time I’ve gone against the logical conclusions of my own values where China is concerned. For instance, I’m also generally anti-war and anti-military. On principle, for instance, I oppose the US maintaining the largest military force in the world, by several orders of magnitude, and spending so much on it as American citizens suffer due to insufficient social and community services, crumbling or insufficient public infrastructure and an utter joke of a social safety net, despite rather high taxes (I’m fine with higher taxes, but I want the money to be spent thoughtfully and effectively). 


In theory, I’m against the US getting over-involved in just about any conflict abroad, as we always seem to make such a mess of it while proclaiming that we’re promoting American “values” or “exceptionalism” or whatever the term du jour is, despite the fact that the values in question are universal (human rights, including the right to self-determination) and the US is not exceptional in any good way. 


And yet, I am in favor of US military assistance to Taiwan. I know that my own values as well as the brutal history of US involvement in foreign conflicts, plus the sheer horror of our bloated military, should cause me to oppose it, but I don’t. Taiwan needs friends, and can’t exactly choose its backup. If that means hoping a military industrial complex that horrifies me in every other way will have Taiwan’s back in case it needs to fight the PLA...then that’s what it means. 


In general, I’m also anti-violence. I prefer peaceful resolutions, having grown up watching revolution over bloody revolution fail to deliver a better life for the people of any given place. At the same time, I’ve watched countries that have slowly progressed and improved despite having to make some tough compromises that affect the lives of real people make real progress — Taiwan among them. 


However, I’ve come to realize that fists don’t stop tanks, period. We can talk all we want about how Taiwan should be anti-war but still resist China. But that’s not going to work if China is hell-bent on a war. Refusing US assistance is akin to telling China that this is a fight they can win, and it’s foolish to think they won’t try. They won’t particularly care that such moves would create a state of prolonged internal conflict that would make Syria blush — this is a government that is quite comfortable with literal genocide. 


Then there are the economic issues. I’m no communist, and am barely socialist. That is to say, I’m anti-corporate and anti-crony capitalist, and have never been happy working for any sort of large multinational entity, and I support strong social programs and careful regulations as companies can basically never be trusted, but I’m not anti-free market. 


So when the whole US pork controversy hit Taiwan (again, sigh), my instinct was to think “you all are saying this will be good for the Taiwanese economy, but pork prices are already low, good products are available, and it will certainly hurt Taiwanese farmers”. 


But, in a bigger picture sense, I have to admit that what Tsai is doing probably is best for Taiwan. Taiwan Report summarized the issue well: meat imports are not the only thing potentially on the table. (If that’s all it was, I would probably oppose it). It’s that Tsai has it quite right that Taiwan is too economically dependent on China, and a big reason for that is the lack of trade agreements with other countries, a situation that is mostly the fault of CCP bullying on an international scale. Say yes to pork, and that could open the door to more important agreements. Free trade isn’t always good for all involved, but in this particular case it actually is, for Taiwan: it’s an opportunity to bolster economic ties with the US and, through that, signal to other countries that working with Taiwan may be possible even in the face of Chinese fury. 


Taiwan independence advocates (so, almost everybody who cares about Taiwan, and certainly everybody worth listening to) and anti-KMTers have been saying for years that getting too close to China is bad for Taiwan, directly opposing the KMT line that the only way forward is for China and Taiwan to deepen ties. The KMT is wrong, but those who oppose them also tend to oppose every other workable option that would keep Taiwan’s economy robust because they sound scary and not protectionist enough. How do you find alternatives to economic ties with China, if you’re not willing to seriously discuss economic ties with anyone else, in any ways that matter?


I actually do believe in protecting local industry, generally — if that can be shown to be the better path in that particular instance. I don’t want Taiwan to be a hub for major international conglomerates as I’ve seen that create sickening inequality almost everywhere it’s happened, from New York to Silicon Valley to Singapore to Hong Kong. 


And I do think the US starting out with agricultural products (which is bound to create opposition in Taiwan where so much of the history — even recently — is tied to the land) rather than just offering to open up more general trade talks is kind of a dick move. And yet, when it’s all stacked on the scales, I find myself supporting any move that helps wriggle Taiwan out of Chinese co-dependency and towards other international ties. 


These are just three examples: banning apps, military assistance from horrible people, and economic issues. I could add a fourth — opposing talking to right-wing figures in the West even if they support Taiwan —  but I’ve spilled so many words examining that particular issue that I don’t particularly wish to revisit it. Generally speaking, I’ve come over to the side of supporting bipartisan endeavors, not because I think people like Ted Cruz are acceptable (they are not; I’d spit on Cruz if I came face-to-face with him) but because I’ve realized that it’s better if support for Taiwan transcended electoral politics. That goes both ways: hoping the left and center will come around, but also not tying all Western support for Taiwan to their successful elections. 


So, the final question is why. Are my principles just not strong enough? Do I claim to have certain values and then abandon them the second they become inconvenient? Or are my beliefs more tied to ends than means — means matter to an extent, but are some compromises not acceptable if the outcome is preferable? I can’t rule out the former, it would be self-serving to say it shouldn’t be a concern. But overall, hopefully the latter holds more sway: just as a person who believes in peace won’t necessarily say it’s wrong to punch a Nazi, maneuvering Taiwan into a better international position may require me to accept a few choices that I otherwise would not support. 


Anyone who says, for instance, that they support peaceful protest but won’t abandon a cause just because a protest for it grew violent should understand this. I won’t abandon paths that I think are in Taiwan’s best interest just because the means don’t always fall within my most rigid principles, because the key principle I hold dear is that Taiwan deserves recognition and de jure sovereignty. Period. 


And, to bring this all back to China, the enemy also matters (and make no mistake, the CCP is an enemy). When an enemy can be negotiated with, one should negotiate. When non-violence is possible, it should be pursued. We should stand by local business and not be taken in by big money when that can be done without remaining economically tethered to an active, vicious enemy. 

Another way to put this is fundamental values vs. beliefs. I believe in peace, diplomacy, finding solutions, civil disobedience while avoiding violence. Self-determination and human rights as universal (not just Western) concepts, however, are core values. It's best for the means to align with my beliefs (diplomacy, non-violence), but at the end of the day, when a choice must be made, I'll stick with my core values. Taiwan won't get to choose if China starts a war, and if it does, it's more important to me to defend sovereignty and human rights in Taiwan than to refuse to fight because war is bad. Forming opinions about CCP hasn't corrupted that process, it's clarified it. 


But the CCP is so truly awful, so unacceptable, so threatening and so utterly disgusting that the full horror of their actions, from the missiles pointed at Taipei to the cultural and literal genocides in Tibet and Xinjiang, creates a black hole of evil that warps everything around it. It can’t be negotiated with, it does not respect non-violence, and it absolutely will try to use economic blackmail to force Taiwan’s hand. It will exploit party politics and foreign culture wars for its own benefit. That is the stuff the CCP is made of. There is no good in it. 


Even today, your average peace-loving or anti-war person will admit that it was necessary to, say, fight the Nazis. That appeasement was wrong and brought us nothing good. This is how I feel about China. And that’s what the CCP are — Nazis. You can’t negotiate with Nazis, you can only fight them. Frankly, you might not get a choice. 

Appeasement didn’t work then, it won’t work now, and that means that I have to adjust the principles I hold when it comes to everything else, because to Taiwan, it’s a threat unlike anything else. 

Monday, June 15, 2020

Foreign residents in Taiwan should get stimulus vouchers, too (and the government is specifically seeking to exclude blue collar foreign workers)

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I don't have a related picture so please enjoy this old gate

(Update) Thanks to a friend's helpful link, I'm able to include video evidence that not only do the stimulus vouchers not cover foreigners who aren't married to locals, but they specifically aimed to exclude foreign blue-collar workers (that is, the majority of the foreign community from Southeast Asia). It's in Mandarin, but watch at around the 1:04:25 mark, and you'll see that the reason given for not allowing all foreign taxpayers to get the vouchers is "因為我們有很多移工" - the rough but I think accurate translation being "because we have lots of migrant workers".

That's disgusting, and the government should honestly be ashamed. 


(Original post)

A few weeks ago, the government unveiled a plan to provide stimulus vouchers to jumpstart the economy as Taiwan copes (spectacularly well) with the CCP Virus. People with low incomes will be able to receive the vouchers free of charge, and wealthier citizens could pay NT$1000 for NT$3000 worth of vouchers. I'm not clear on the details, but there are also apparently specific voucher plans in the works for things like cultural activities, as well.

Here's the thing, as with the Ma-era stimulus plan in which citizens and those married to citizens received NT$3600 to bolster the economy, foreign residents with no local spouse are not eligible for any of these programs, either.

If you're wondering whether anyone's asked the government why they craft policies like this, the answer is yes. The response will sadden but not surprise you. From the link above:



When asked the reason for this policy, she [Su Wen-ling 蘇文玲 of the Ministry of Economic Affairs] said that the vouchers are "only meant for Taiwanese citizens," with the hope that they will spend more money on the economy.

This quite literally amounts to:

Q: "Why are foreign residents, who pay taxes just like Taiwanese citizens, not eligible for all of the benefits of those taxes?"

A: "Because they're not."



It was not only a bad answer, it was a non-answer, and Ms. Su should feel bad for giving it. She may as well have stuck out her tongue and blown a raspberry with lots of extra spit for emphasis.


The whole attitude is frankly ridiculous, for two reasons. I'll give you the less important one first: we pay taxes. It's also our tax money being spent on measures to improve the economy, and our money spent in Taiwan is just as good as the money spent by citizens.

If the purpose of this program is to help the economy, then more money being spent by more people is a good thing. You get less, uh, stimulation if you give out fewer vouchers, so why isn't every taxpayer eligible?

There's simply no reason to exclude us. Including all foreign residents (so that means not just the middle-class people like me, but also the far more sizable Southeast Asian workforce) wouldn't even amount to that much money when compared to the cost of the entire program. And, as any savvy business knows, giving out coupons entices most people to spend even more than they would have without the coupon. 


It's just bad policy, crafted for no reason, and "defended" with a joke of a non-answer.

That said, it's not like I need the stimulus money. I don't, and you probably don't either (though I suppose we could all benefit from it.) It's not really about the money - it's about being treated like a normal taxpayer, and about making better economic policy. Nobody's looking for a charity handout.

However, there's a more important reason why foreigners should be included.

Let me tell you about my community. We have a lot of elderly residents, which means there are a lot of care workers in the area, most of whom are from Indonesia and the Philippines. This means that my community has a higher-than-average concentration of shops that cater specifically to this community, at least by Taipei standards. here are three Indonesian markets within a 2-minute walk of my apartment.

They sell goods and provide shipping services that other foreign residents from Southeast Asia purchase and use (I also shop at these stores, both for ingredients and prepared food, which is generally excellent). I have never seen a Taiwanese person shopping in any of them - if any do, it's not common. 


What I'm trying to say is this: they are threads woven inextricably into the community life and economy of my neighborhood. They have value - providing needed goods, services and employment - and deserve the benefits of economic stimulus plans just as much as any other businesses frequented by Taiwanese.

But because the people who shop there won't get vouchers, and the people who get vouchers don't shop there, this entire sector of the economy will almost certainly see no benefit whatsoever. They bring so much value to this country, are owned by taxpayers and employ people who pay taxes, selling goods to people who pay taxes, but won't get the benefit of those taxes when the government feels the economy is lagging.

My neighborhood may be a little unique for Taipei, but the rest of Taiwan surely has areas where businesses such as these are a notable feature of the economy and streetscape.

I have to wonder, what other sectors of the economy that the folks at the Ministry of Economic Affairs have clearly not considered are going to be overlooked by this stimulus program?


I'm sorry, but that's not right, and someone really ought to tell Ms. Su and her colleagues, and demand a real answer. 

Sunday, November 10, 2019

China will never 'win over' Taiwan: an anatomical discussion of dopey ledes

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Another day, another opinion piece about whether the Chinese government's reaction to the Hong Kong protests will hurt their image in Taiwan, and therefore their chances of convincing Taiwanese that closer ties or even eventual unification. This one comes from Bloomberg, a perpetual font of bad writing about Taiwan. It's become so commonplace, though - the well-founded criticism of China, backed up with some nonsense about how the Chinese government could alienate Taiwan and sour any hopes that Taiwan might willingly "return to the fold" - itself an inaccurate description of the situation.

Or, as Richard McGregor puts it in Bloomberg: 



Without a change in its approach, the Communist Party risks making the already difficult task of winning over the self-governing island next to impossible without force.... 
Amid the Hong Kong protests, the last thing the Communist Party should want is a rebuff from voters in Taiwan. Yet Beijing has shown little interest in modifying its stance. The inevitable result is that Taiwan has become even more alienated from China.... 
A decisive victory for Tsai in January’s election might chasten Beijing and cause it to return to a more consensual strategy. But the example of Hong Kong doesn’t so far give much hope that Xi will change course. If China continues to double down, the eventual denouement for Taiwan may be far more dangerous. 

What these sorts of articles universally overlook (or intentionally ignore) is that the CCP's stance and behavior only play a small-to-moderate role in Taiwan's desire for independence and lack of enthusiasm for unification. In fact, it wouldn't matter much if the CCP adopted a more conciliatory stance on Taiwan: there is no "consensual" strategy available to China because it's quite clear that Taiwan wants independence regardless.

That's not just my opinion - it's reflected in the data as well.

Poll after poll shows that deepening Taiwanese identity, which tends to go hand-in-hand with belief that Taiwan simply is independent and should remain that way. Most strikingly, these beliefs have not only blossomed since democratization in 1996, but only grew during the Ma Ying-jeou era, when the CCP was at its most conciliatory.

According to data published here, in 2008 (when China-friendly Ma took office) 64% of poll respondents said that Taiwan, even as the 'Republic of China', was an independent country, though only 22% of people thought China would use economic tools to force political concessions. According to this more detailed account, the number of people who identified as solely Taiwanese and those who identified as both Taiwanese and Chinese were both in the mid 40% range, with solely "Chinese" identification being quite low, at 3% - about the same percentage as non-respondents. This source says the same thing.

Then what happened? It was an era that some people still label as having "warming" or "closer" relations between Taiwan and China. You'd think that it would result in Taiwanese feeling closer to China as well, right?

Wrong.

Look at that data again. Taiwanese identity only increased from 2008 to 2016 - especially after the 2014 Sunflower Movement. The sense that Taiwan/the ROC was independent increased as well. Fear of China's 'conciliatory' economic gestures being guises for political force spiked, because...duh, they were.

It didn't matter how friendly China was to Taiwan. It didn't matter that Chairman Xi and President Ma got cozy in Singapore. Taiwan wasn't having it. If anything, CCP efforts to be 'nice' only exposed the truth: that none of it was sincere, and none of it came for free. All of it created greater economic dependency that would make eventual extrication under 'colder' ties more difficult, and it didn't even benefit Taiwan that much. Economic growth under Ma was not more impressive - and in some ways it was less so - than during other less 'China-friendly' administrations.

Taiwanese identity blossomed not just in response to this realization about China, but also as a part of a natural upward trajectory. That makes sense. Before democratization, it was difficult to freely form, let alone express, a true sense of identity in Taiwan. Taiwanese history was taught as a part of Chinese history in schools and you could face repercussions for expressing a different view. It's only reasonable that once those restrictions were lifted, Taiwanese people would look back at their own history - which was by and large not as a part of China, even if their ancestors came from there - and form a stronger sense of identity, which would increase over time.

It doesn't make sense that a friendlier stance from China would stem this tide, and indeed it did not.

While some of these 'Taiwan identity' numbers dropped again after Tsai assumed office in 2016, note that none of them dropped very much and all of them are on the rise again. Dipping from around 65% in 2016 back to the mid-50th percentile, and "Taiwanese and Chinese" identity experienced a slight bump from about 32% to about 38%. At the time, people worried that the Sunflower effect might be ephemeral and numbers might dip even further, but that didn't happen. Instead, sometime around 2018-2019 numbers began to rise again. The gap between "Chinese and Taiwanese" and "Taiwanese only" identity that began in 2008 - again, during China's "friendly" years! - only widened over the next eight years never came close to closing.

The reason for the change probably has something to do with Hong Kong and China's response - it would be silly to say it's not a factor. But if these poll results were released in the summer of 2019, the actual poll was probably conducted a fair bit earlier, that is, before the protests really got underway, if not entirely so. That was also around the time that Han Kuo-yu started to gain popularity among some segments of the population, and strongly turned off others - reminding them, perhaps, that games with China cannot be won and are best not played at all.

Considering this, I'd put that 2016-2018 blip down to Taiwan's natural tendency to grow critical of its leaders. Tsai was elected, the Sunflower high wore off, and now that "our person" was in office, and it was time to start nitpicking on her inevitable flaws.

It's also worth noting that during this time, "Chinese only" identity - the one most closely tied to openness to unification - did not experience a bump. In addition, if you read that Washington Post article again, you'll see that Taiwanese youth have a huge role to play. The current generation of young adults overwhelmingly considers itself Taiwanese, and those numbers don't seem to have budged much at all. Anecdotally speaking (because I have no data!), that generation was also the most strongly critical of President Tsai during the labor law and marriage equality wars. But it was also quicker to re-embrace her when the terrifying spectre of President Han began to loom, Hong Kong started getting dicey, and marriage equality finally passed.

And if you grow up simply thinking you are Taiwanese and your country is Taiwan, and there's no reason to question that because why would there be?, the chances that China could ever "win you over" are remote indeed.

So why do people still think China has a chance?

Because they're looking at only recent data, not going back to the 1990s, or even 2008. They've also been convinced by an international media that posits every issue facing Taiwan as being related to China in some way because China gets more clicks (even when they clearly not), when in many cases the reasons behind why Taiwan feels the way it does are mostly, if not entirely, domestic.

When you look at it that way and ignore the history of Taiwanese identity, things like this sound more plausible:

Over the past year, Beijing has single-handedly revived the electoral prospects of its political adversary, incumbent President Tsai Ing-wen of the independence-leaning Democratic Progressive Party. At the turn of the year, Tsai’s approval rating was a miserable 24%. Now polls show her with more than 53% support versus about 31% for Han, whose Kuomintang is the natural ally of Beijing. That Nationalist party retains deep ties to the mainland as the former government of China until it lost a civil war to the Communists and fled to Taiwan in 1949.

When, in fact, almost everything about it - and other opinion pieces that use this data point as evidence - is wrong.

It's true that Beijing has helped Tsai to a degree, but "single-handedly" reviving her electoral prospects? I think not. Domestic issues have played just as much of, if not a greater role.

"...the independence-leaning Democratic Progressive Party"? True, but misleading. It makes it sound as though being pro-independence is a platform of the party and not a common, majority belief in society. That's not the case. The will of Taiwan leans toward independence, and the DPP happens to better match it than the KMT, which often has to hide its closeness to China behind obfuscatory language. Even if Han wins in 2020 and the CCP puts its "the abuser is being charming to win you back" on again, don't expect the general pro-independence sentiment to change much.

Plus, "a miserable 24%"? Rick, do you even follow Taiwanese electoral politics? 24% is pretty normal for Taiwan, and every president who has eventually won re-election (a grand total of two people so far) experienced a huge dip in their first term approval ratings. Taiwanese love to criticize their leaders, so while that wasn't a great number, it also wasn't "miserable" or even out of the ordinary. Besides, that number seems to have come from a KMT poll - unless someone has evidence to the contrary - with another non-KMT-funded poll published around the same time, in May 2019, showing her support at 33.8%. 


Let me finish by simply re-stating the obvious: articles like these are harmful to Western perceptions of Taiwan, and to Western readers' understanding of the Taiwan-China situation in general. I mean that: a good friend emailed me recently positing that China's harshness with Hong Kong might "turn Taiwanese off" to "reunification" after reading the New York Times. (He got a kind talking-to, don't worry.)

People like Richard McGregor and media outlets like Bloomberg, then, actively peddle untruths and misleading notions. The "denouement" for Taiwan was always going to be dangerous, because China might offer some economic enticements or use friendly language, but it's never going to give up on unification/annexation. It's only possible to envision a violence-free denouement if you believe that Taiwan could possibly be persuaded to embrace unification - but that's highly unlikely.


It's clear from decades of research that the Taiwanese sense of identity and national sovereignty has deep, domestically-grown roots - history, cultural evolution, geography, democracy - that anchor it firmly as a place apart. How China approaches Taiwan is just one tiny tendril of a massive banyan that neither China, nor the international media, nor Bloomberg, nor Mr. McGregor here, seem to understand.

In fact, we've seen this play out recently. When China tried to reach out to Taiwan again in hopes of raising the prospects of its flailing puppet candidate Han Kuo-yu with its "26 measures", the reaction was one of near-universal disgust. It's clear to Taiwan that when China 'buys' you, they're not the ones paying the price.

This isn't just about China's treatment of Hong Kong in particular so much as China's vision for all territories it considers to be "Chinese" in general. The only way not to see this is to assume that China's vision is fungible, and that what it offers Taiwan and Hong Kong could ever be anything other than oppression. In events like the Hong Kong revolt, all China is really doing is showing its true face. Taiwanese people aren't dumb; they see that.

So please quit it with the fearmongering that China is "driving away" Taiwan. It's not, really. Taiwan got in the car and drove its own damn self away decades ago, and it's not coming back.