GLOBAL BANKING CRISIS PUTS A DAMPER ON KLCI (Malaysia)

Wednesday January 21, 2009

by Leong Huleong Yee

PUBLISHED BY ‘THE STAR’ (Malaysia)

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HP TARGETS SMALL, MEDIUM FIRMS (Formosa – Taiwan)

Friday, Jan 16, 2009

by Elizabeth Tchii – STAFF REPORTER

PUBLISHED BY ‘THE TAIPEI TIMES’ (Formosa – Taiwan)

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CPC CORP, TAIWAN ACQUIRES RIGHTS TO SEARCH FOR OIL, GAS IN WATERS OFF BELIZE

Friday, Jan 16, 2009

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PUBLISHED BY ‘THE TAIPEI TIMES’ (Formosa – Taiwan)

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JOLLIBEE COMPLETES TAKEOVER OF TAIWAN RESTAURANT CHAIN (Philippines)

Tuesday, January 6, 2009

by Jenniffer B. Austria

PUBLISHED BY ‘THE MANILA STANDARD TODAY’ (Philippines)

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CHINESE PRESIDENT CALLS FOR CLOSER TIES, INCLUDING MILITARY, WITH RIVAL TAIWAN

December 31, 2008 – 12:10 AM

by Tini Tran – Associated Press

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PREMIER SAYS GOVERNMENT WILL HELP AILING INDUSTRIES – LENDING A HAND: LIU CHAO-SHIUAN SAID THE GOVERNMENT WILL ASK COMPANIES TO MAKE PLEDGES OF HIGHER ENERGY EFFICIENCY AND TO SET CAPS FOR CARBON DIOXIDE EMISSIONS (Formosa – Taiwan)

Wednesday, Dec 31, 2008

by Shih HsIu-chuan – Staff Reporter

PUBLISHED BY ‘THE TAIPEI TIMES’ (Formosa – Taiwan)

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ARE WE LIVING IN AN ERA OF ‘DEPRESSION ECONOMICS’?

Wednesday, Dec 31, 2008

by J. Bradford DeLong

PUBLISHED BY ‘THE TAIPEI TIMES’ (Formosa – Taiwan)

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ADDRESSING CLIMATE CHANGE HEAD-ON

Tuesday, Dec 30, 2008

by Trevor Houser

PUBLISHED BY ‘THE TAIPEI TIMES’ (Formosa – Taiwan)

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US$19B MAINLAND AID FOR TAIWAN BUSINESSES (China)

2008-12-22

by Zhang Fengming

PUBLISHED BY ‘THE SHANGHAI DAILY’ (China)

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DIRECT FLIGHTS AND SHIPPING FORGE CHINA-TAIWAN LINKS

4:00AM Tuesday Dec 16, 2008

PUBLISHED BY ‘THE NEW ZEALAND HERALD’

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U.S. ARMS SALES UNDERMINE HUMAN RIGHTS, GROUP SAYS

Dec. 10, 2008, 1:31PM

by Barry Schweid – Associated Press

PUBLISHED BY ‘THE HOUSTON CHRONICLE’ (USA)

WASHINGTON — The U.S. arms trade is booming — sales reached $32 billion last year — and more than half of the purchasers in the developing world are either undemocratic governments or regimes that engaged in human rights abuses, a private think tank reported today.

Timed to the 60th anniversary of the U.N.’s Universal Declaration of Human Rights, the report by the New America Foundation, a nonpartisan policy institute, named 13 of the top 25 arms purchasers in the developing world as either undemocratic or engaged in major human rights abuses.

The 13 listed in the report were Pakistan, Saudi Arabia, Iraq, United Arab Emirates, Kuwait, Egypt, Colombia, Jordan, Bahrain, Oman, Morocco, Yemen and Tunisia.

Sales to these countries totaled more than $16.2 billion over 2006 and 2007.

The total “contrasts sharply with the Bush administration’s pro-democracy rhetoric,” the report said.

Also, the report said that 20 of the 27 nations engaged in major armed conflicts were receiving weapons and training from the United States.

“U.S. arms transfers are undermining human rights, weakening democracy and fueling conflict around the world,” the report said.

William D. Hartung, the lead author of the report, said, “The United States cannot demand respect for human rights and arm human rights abusers at the same time.”

U.S. arms sales grew to $32 billion in 2007, more than three times the level when President Bush took office in 2001, the report said.

The United States is the world’s largest arms supplier. U.S. exports range from combat aircraft to Pakistan, Morocco, Greece, Romania and Chile to small arms and light weapons to the Philippines, Egypt and Georgia.

In 2006 and 2007, the United States sold weapons to more than 174 states and territories.At the beginning of the Bush administration there were 123 arms clients, the report said.

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ARMS SALES AND THE FUTURE OF U.S.-TAIWAN-CHINA RELATIONS

November 24, 2008 05:01 PM – Age: 13 days

by Jau-shieh Joseph Wu

PUBLISHED BY ‘THE JAMESTOWN FOUNDATION’ (USA)

Publication: China Brief Volume: 8 Issue: 22

Category: China Brief, Featured, Military/Security, China and the Asia-Pacific

The outgoing Bush Administration made an 11th hour decision to notify the U.S. Congress on October 3—a day before Congress went into recess ahead of the groundbreaking November presidential election in the United States—that a raft of arms and weapons systems, which have been effectively frozen since December 2007, will be released for Taiwan. The passage of the arms package provided a temporary reprieve for Taiwanese President Ma Ying-jeou, whose approval rating since assuming office in May has plummeted to 23.6 percent in October (Global View, November 2008). The items released by the U.S. Defense Security Cooperation Agency, at the value of $6.4 billion, includes: 182 Javelin anti-tank missile; 30 Apache helicopters; four PAC-3 anti-missile batteries; 32 submarine-launched Harpoon missiles; and four E-2T radar plane upgrades. But more noticeable than the items released is the absence of the first phase of 8 diesel-powered submarines, Black Hawk helicopters, and two additional PAC-3 batteries that had been originally sought (United Daily News [Taiwan], October 5, 2008; Defense News, October 6). Taipei also requested 66 F-16 C/D jet fighters to add to its current inventory, but the Bush Administration has not received the letter of request for the reason that it would only process the above-mentioned package at the current stage.

The passage of the arms package was received with a sigh of relief in Taipei, which is concerned about the island’s strained relations with the United States,and, had a decision lapsed to the next U.S. president, weary that the package would be approved at all. As expected, Beijing complained bitterly and suspended unspecified military exchange programs with the United States (United Daily News, October 8, 2008), but overall the sale did not upset Sino-U.S. relations, nor did it interrupt the momentum of reconciliatory gestures between the Kuomintang (KMT), the ruling party on Taiwan, and the Chinese Communist Party (CCP). However, the scaling-down of the arms package signifies subtle changes in the geopolitical landscape in East Asia, where the shifting center of gravity may affect the long-term interests of the United States and its relations with the nations in the region.

Arms Sale and Taiwan’s Defense

Although the items approved only represent a fraction of Taiwan’s request and the value is half of what was originally sought, the package nonetheless improves Taiwan’s defense capability and reduces Taiwan’s widening military disparity vis-à-vis China. However, China’s military is rapidly modernizing, with its military defense budget has increased by double digit for more than 15 years while Taiwan’s defense budget has remained low. Therefore, the arms package will be unable to offset the strategic changes in the depth projection of China’s military in the region and encirclement of Taiwan’s sovereignty. Among Taiwan’s most cited threats is the People’s Liberation Army’s (PLA) deployment of more than 1,000-1,400 short-ranged ballistic missiles (SRBM), which have increased at the rate of 100 per year since 2001. These missiles have been aimed at Taiwan from six missile bases in Lepin, Santow, Fuzhou, Longtien, Huian, and Zhangzhou, spanning three southeastern coastal provinces of Jiangxi, Zhejiang, and Fujian [1] (Liberty Times [Taiwan], March 30, 2008). In addition, China has also acquired an estimated 50 advanced submarines, which is more than what military analysts state the PLA needs to blockade the Taiwan Strait. The PLA has also engaged in military exercises and deployments designed to sharpen its defensive capabilities so that even with limited offensive capabilities, China would be able to subdue Taiwan’s defenses in a limited amount of time by denying the access of other maritime powers that may come to Taiwan’s defense [2]. Furthermore, China has—in recent years—ratcheted up its computer-hacking activities against the Taiwanese government’s national security-related agencies and has stolen countless sensitive materials (United Daily News, April 8, 2007), so much so that some Taiwanese security officials describe that a “silent war” has already begun.

Friction between the Democratic Progressive Party (DPP) and the CCP in the Taiwan Strait was to be expected for two parties whose visions for Taiwan and its relationship with China are diametrically opposed. That the result of Taiwan’s presidential election on March 22 was embraced by the embattled U.S. leadership came as no surprise. The KMT’s Ma Ying-jeou appears more conciliatory toward China than his predecessor, Chen Shui-bian of the DPP. Chen stoked tensions in cross-Strait relations prior to the election by advocating that Taiwan join the United Nations as a new member, promoted a national referendum on the issue during the recent presidential election. These tensions have since eased following President Ma’s inauguration. Bush Administration officials—in pubic and in private—conveyed satisfaction to see Taiwan’s KMT government and the CCP re-engaged in cross-Strait dialogue, particularly the resumption of the Strait Exchange Foundation (SEF) – Association for the Relations Across the Taiwan Strait (ARATS) channel, severed by the CCP after former President Lee Teng-hui stated in a major policy speech in 1999 that Taiwan-China relations are “special state-to-state relations.”

Cross-Strait Politics and China’s Legal Warfare against Taiwan

From November 3 to 7, the head of ARATS, Chen Yunlin, serving as China’s special envoy to Taiwan, participated in an unprecedented visit to Taiwan to negotiate cross-Strait aviation, shipping, and food safety agreements. Chen Yunlin’s visit has attracted international attention on the warming relations between a democratic Taiwan and an authoritarian China, and also on a deepening divide in Taiwanese society.

A closer examination of ongoing cross-Strait shuttle diplomacy between the KMT and CCP, and public announcements made by President Ma raises legitimate questions about whether the current trend is in Taiwan’s national interest or for that matter U.S. long-term security interest.

The issue of Taiwan’s sovereignty has always been the focal point of cross-Strait tension, since the PRC claims that Taiwan is a part of China under its interpretation of the “one-China principle.” The Chinese government has engaged in what some analysts call a diplomatic “full-court press,” using a carrot and stick strategy in the form of financial and monetary incentives, to legalize the “one-China principle” in major international organizations and thereby legitimize its claim of sovereignty over Taiwan (Javno, November 16, 2007).

The first such step came in May 2005, when the Chinese government signed a memorandum of understanding (MoU) with the World Health Organization (WHO) Secretariat requiring the WHO to seek Chinese approval before Taiwan, under the name “Taiwan, China,” could participate in any WHO-related activities. The second came in the United Nations, which in March 28, 2007, issued a letter from the Secretariat to Nauru stating that, in compliance with the 1972 UN General Assembly Resolution 2758, “the United Nations considers Taiwan for all purposes to be an integral part of the People’s Republic of China.” The third incident was with the OIE (World Organization of Animal Health). In May 2007, Beijing attempted to pass a resolution “recognizing that there is only one China in the world and the government of the People’s Republic of China is the sole legal government representing the whole of China which includes Taiwan,” changing Taiwan’s membership into “non-sovereign regional member,” and using “Taiwan, China” or “Taipei, China” as Taiwan’s official title in this organization.

As these three examples demonstrate, the “one-China principle” has been used by the PRC as a means of waging its “legal warfare” to incorporate Taiwan and to accomplish its bottom-line goal of de jure unification, as explicitly stated by its declared intent to use military force if necessary under the “anti-secession law” of 2005 to “reunify” Taiwan. The examples also illustrate how, if Taipei agrees to the “one-China principle,” it may be interpreted as accepting China’s claim of sovereignty over Taiwan. Under such pretexts, the government under the DPP had to avoid and even repel the “one-China principle” as the precondition for the resumption of cross-Strait talks. The DPP did this by seeking international support for its counter-position, which led to the standoff in cross-Strait negotiations and showed the world that the “one-China principle” effectively became a non-starter.

These efforts notwithstanding, Ma Ying-jeou in his inaugural address reversed the previous administration’s position and accepted the so-called “1992 consensus” as the foundation for cross-Strait reconciliation in spite of the fact that the PRC officially stated that the “1992 consensus” was a consensus realizing (ti-xien) the “one-China principle.” In several private meetings with foreign visitors, Ma even went on to say that he accepted the one-China principle with or without any elaboration on what he meant by it. In addition, Ma stated in September during an interview with a Mexican journal that the relations between Taiwan and China are “non-state to state special relations,” and his spokesperson Wang Yuchi further qualified that statement of policy by saying that relations should be characterized as “region to region” (diqu dui diqu) relations (September 3, 2008, news release, http://www.president.gov.tw). In the effort to participate in international organizations, Ma announced that there is no better title for Taiwan other than “Chinese Taipei” (United Daily News, April 5, 2008). During the August/September effort to participate in the United Nations, the KMT government gave up on the membership drive and pursued only “meaningful participation” in UN-affiliated organizations. Even so, the Chinese Ambassador to the UN, Wang Guang-yia, stated that Taiwan was not qualified to participate in major international organizations, and Taiwan’s participation in the WHO had to follow the MOU signed between the Chinese government and the WHO Secretariat (Liberty Times, August 28, 2008). The Ma administration made no attempt to repudiate the Chinese claim, and Ma’s spokesperson stated that it was not a “non-goodwill” (Liberty Times, August 29, 2008). In addition, when in the negotiations for cross-Strait chartered flights the Ma administration decided to open up six domestic airports in addition to two international airports, the decision apparently fell into the Chinese claim that the cross-Strait flights are domestic flights. In short, the official statements and policy actions by the KMT government on relations between the two sides of the Strait thus put Taiwan within the description of the “one-China principle,” with Taiwan being part of China.

Inner Politics and Arms Sales

In another interview by India and Global Affairs, Ma stated that he wanted to pursue full economic normalization with China, and that he also wanted to reach a peace agreement within his term (Liberty Times, October 18, 2008). If Ma’s concept on the relations between Taiwan and China falls within the description of the “one-China principle,” a full economic normalization will mean an arrangement similar to the Closer Economic Partnership Agreement (CEPA) between Hong Kong and China. A peace agreement between Taiwan and China within the timetable of his four-year term may necessitate that the United States prepare for an eventual termination of arms sales to and security cooperation with Taiwan. Ma’s statements may be welcomed by the international community as gestures toward peace, but it is actually putting Taiwan’s security in jeopardy. If Taiwan were to sign a peace agreement under the KMT where the conditions are defined by the KMT and CCP, the resulting equation, influenced by a much more powerful China at the other end of the negotiating table, may forfeit Taiwan’s freedom to repudiate China’s claim over Taiwan. Taiwan may be moving dangerously too close to the PRC and may not be able to maintain its current de facto independent status any longer.

The United States has for decades held a policy of refuting the PRC’s claim of sovereignty over Taiwan, as stated in the “six assurances” provided by President Ronald Reagan in 1982 and other private communications with Taiwan (Fredrick Chien Memoir, vol. 2, 2005, 215-6). When China manipulated the UN Secretariat to issue a letter in March 2007, which stated that Taiwan is considered by the UN an integral part of the PRC, the United States protested to the UN Secretariat, arguing that such a declaration is against U.S. policy (Liberty Times, September 6, 2007). But if Taiwan itself accepts one-China principle, the foundation for this U.S. policy may be jeopardized. In other words, Ma’s effort of reconciliation is a short-term relief for the United States at a time when it is not capable of addressing simultaneous international conflicts. However, such efforts may prove to be against U.S. long-term interests, especially if the United States continues to view China’s rapid military modernization with suspicion.

Taiwan’s domestic politics are severely divided over the course of the government’s ongoing rapprochement with China. President Ma has not made any efforts to seek domestic reconciliation or attempt to communicate with the opposition over his intentions on cross-Strait policy. In fact, Ma’s statements and actions angered many people who believe that Taiwan should keep China at arm’s length. Taiwan appears to be more divided than before in the months since Ma’s inauguration, as evidenced by several large-scale, anti-government/anti-China demonstrations. Consequently, Taiwan’s status has been relatively weakened in facing the subtle and not so subtle threats from authoritarian China. A divided and weakened Taiwan severely threatens Taiwan’s national security, and is, by extension, not in the interests of the United States or Japan, its key ally in East Asia. All interested parties should therefore encourage the KMT to engage the opposition DPP in formulating its policy across the Taiwan Strait.

Conclusion

The changes occurring within the strategic landscape of East Asia are quite subtle indeed. U.S. arms sales to Taiwan are one of the most important means for the United States to demonstrate its security commitment to its key allies and ensure peace and stability in the Taiwan Strait. In order for the United States to continue to maintain peace and stability in the region, the United States has long held the position, as prescribed by the Taiwan Relations Act, that arms sales to Taiwan are evaluated on the merit of Taiwan’s defense needs, not political judgments or as a result of consultations with the PRC. However, the U.S. decision to scale down the volume of weapons that had already been promised may make Taiwan feel uncomfortable about the U.S. commitment at a time when Taiwan needs a strong defense in order to ward off China’s possible aggression. A continued U.S. commitment is also integral in permitting Taiwan to resist China’s political pressure, however remote it may seem, and most importantly enable Taiwan to negotiate with China from a position of strength. The unfinished issue of arms sales to Taiwan thus becomes another pressing matter for the new U.S. administration to address in order to safeguard American interests in reinforcing peace and stability in East Asia.

Notes

1. Tseng Shiang-yin, “The Enhancement of Taiwan’s missile defense,” Taiwan Defense Affairs (Vol 5, No. 3, Spring 2005) pp. 88-117, www.itdss.org.tw/pub/05_3/05_3_p088_177.pdf.

2. Ling Chang-sheng, “Research, Development and Deployment of China’s Cruise Missiles,” Defence International Issue 213 (Taiwan: April 12, 2003), www.diic.com.tw/comment/06/06930412.htm.

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FILIPINOS’ PESSIMISM UP — MASTERCARD POLL

11/13/2008

Filipino consumers have grown more despondent and are among the most pessimistic in Asia with a confidence index of 40 against a 47.4 average in the region during the first half and from a far higher 67.7 a year ago, results from the latest MasterCard Worldwide Index of Consumer Confidence released yesterday showed.

Most Asian consumers are pessimistic on the six month period ahead, the survey showed.

While consumers in Vietnam, China, India and Singapore relatively remained optimistic; Hong Kong and Taiwan consumers registered steep declines in consumer confidence levels.

Consumer confidence across the region has dropped seven points from six months ago, as a result of current economic volatility and the prospect of a global economic recession.

The current regional consumer confidence score of 47.4 is significantly below the score six months ago of 55 and a year ago of 67.3, according to Mastercard.

The level, however, remained higher than the 1997-1998 Asian economic crisis average of 32.3.

Overall consumer outlook has also fallen across the five indicators that make up the index compared to six months ago: employment (41.2 vs 54.2 six months ago), economy (42.1 vs 51.8), quality of life (44.0 vs 48.2) and the stock market (45.5 vs 53.4) and regular income (64.3 vs 72.2).

The index is based on a survey which measures consumer confidence on prevailing expectation in the market for the next six months. It is calculated based upon percentage response figures, with zero as the most pessimistic, 100 as most optimistic and 50 as neutral.

Only four out of the 14 markets surveyed — Vietnam, China, India and Singapore — were optimistic about the first half of next year. Vietnam tops the index with a score of 88.1 and the only market that has increased its score from six months ago.

China (76.6), India (63.9) and Singapore (62.3) remain optimistic about the first half of 2009 but they are less optimistic than they were six months ago (China: 82.7; India: 82.1; Singapore: 87.3).

Thai consumers continue to be pessimistic, though confidence levels have risen slightly from six months ago (23.7). The current score is, however, much lower than a year ago (44.2).

At the other end of the spectrum, nine markets are pessimistic about the first half of 2009, with Hong Kong (41.8 vs. 83.1 six months ago) and Taiwan (32.1 vs. 71.3 six months ago) recording the biggest declines.

“Consumers across AsiaPacific are clearly feeling the effects of the global credit crisis. While Asian financial institutions may be less affected by the global credit crunch and the financial sector melt down, Asian markets have been just as severely suffered the impact; and the regional powerhouses like China and India are equally affected. While the consumer confidence scores in China and India are still optimistic, confidence levels are still much lower than they were before,” Dr Yuwa Hedrick-Wong, economic advisor to MasterCard in Asia-Pacific said.

The latest survey was conducted from Sept. 1 to 29 2008 and involved 6,019 consumers across 14 key Asia-Pacific markets.

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PUBLISHED BY ‘THE DAILY TRIBUNE’ (Philippines)