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September 30, 2009, Commercial Times [Reported by Du Huirong]
The Ministry of Economic Affairs' decision to open Taiwan to mainland Chinese investment has severely impacted the domestic traditional Chinese medicine (TCM) industry. At the "TCM Industry Summit Forum" jointly hosted by the Commercial Times and the Taiwan Chinese Medicine Merchants Association yesterday, industry representatives, academics, and legislators strongly opposed the government's move. They argued that this policy would not only threaten 3 million jobs and an industry worth NT$200 billion but also endanger public health, as mainland China legally permits the mixing of Western drugs with TCM.
Leaders of the industry, including Zhang Chaolin, Chairman of the Taiwan Chinese Medicine Merchants Association; Wang Songyi, Supervisor; Zheng Bingsheng, former Chairman of the Kaohsiung Chinese Medicine Merchants Association; and Wang Ruishen, Chairman of the Republic of China Chinese Medicine Merchants Association, emphasized that Taiwan's TCM industry, like agriculture, is vulnerable. Over 90% of TCM materials rely on imports from mainland China. If mainland capital is allowed in, it would leverage its control over raw materials to dominate Taiwan's market, leading to monopolistic practices. This would contradict the government's policy goals, causing local TCM businesses to decline, collapse, or be acquired. The result would be economic stagnation, worsening unemployment, and the complete collapse of Taiwan's fragile TCM industry.
Additionally, unlike Taiwan, which adheres to pure TCM practices, mainland China legally allows the mixing of Western drugs with TCM. Opening up to mainland investment risks damaging Taiwan's TCM industry and its long-term international reputation.
Professor Lin Xiangkai from the Department of Economics at National Taiwan University firmly opposes mainland investment in Taiwan. He stated that Taiwan's strategy should focus on maintaining its competitive edge. While Taiwanese businesses avoid expanding to the mainland to preserve advantages, mainland capital entering Taiwan could seize control, dictate investment directions, and exploit Taiwan's technology and brands. Combined with cheap mainland labor and resources, this could undermine Taiwan's economy.
Dong Ruibin, Dean of the College of Business at China University of Technology, pointed out the asymmetry between cross-strait industries, whether in finance or other sectors, in terms of scale, operations, and regulations. With mainland China already controlling 90% of TCM raw materials, the government must prioritize public health and industry survival by enforcing strict regulations.
Legislators Huang Shuying and Chen Ying noted the TCM industry's concerns over mainland investment. Given the Ma administration's policy of gradual opening, even if TCM is excluded in the first phase, it could be included later. Moreover, mainland investors might bypass restrictions by using proxies or third-country routes. Therefore, the industry must collaborate to block such moves, while the government should enact strict laws and ensure legislative oversight in policy discussions or ECFA negotiations.
Source: http:/ / news. chinatimes. com/ C……0706+122009093000482,00. html
Taiwan's TCM Industry Rejects Mainland Investment
The Ministry of Economic Affairs' decision to open Taiwan to mainland Chinese investment has severely impacted the domestic traditional Chinese medicine (TCM) industry. At the "TCM Industry Summit Forum" jointly hosted by the Commercial Times and the Taiwan Chinese Medicine Merchants Association yesterday, industry representatives, academics, and legislators strongly opposed the government's move. They argued that this policy would not only threaten 3 million jobs and an industry worth NT$200 billion but also endanger public health, as mainland China legally permits the mixing of Western drugs with TCM.
Leaders of the industry, including Zhang Chaolin, Chairman of the Taiwan Chinese Medicine Merchants Association; Wang Songyi, Supervisor; Zheng Bingsheng, former Chairman of the Kaohsiung Chinese Medicine Merchants Association; and Wang Ruishen, Chairman of the Republic of China Chinese Medicine Merchants Association, emphasized that Taiwan's TCM industry, like agriculture, is vulnerable. Over 90% of TCM materials rely on imports from mainland China. If mainland capital is allowed in, it would leverage its control over raw materials to dominate Taiwan's market, leading to monopolistic practices. This would contradict the government's policy goals, causing local TCM businesses to decline, collapse, or be acquired. The result would be economic stagnation, worsening unemployment, and the complete collapse of Taiwan's fragile TCM industry.
Additionally, unlike Taiwan, which adheres to pure TCM practices, mainland China legally allows the mixing of Western drugs with TCM. Opening up to mainland investment risks damaging Taiwan's TCM industry and its long-term international reputation.
Professor Lin Xiangkai from the Department of Economics at National Taiwan University firmly opposes mainland investment in Taiwan. He stated that Taiwan's strategy should focus on maintaining its competitive edge. While Taiwanese businesses avoid expanding to the mainland to preserve advantages, mainland capital entering Taiwan could seize control, dictate investment directions, and exploit Taiwan's technology and brands. Combined with cheap mainland labor and resources, this could undermine Taiwan's economy.
Dong Ruibin, Dean of the College of Business at China University of Technology, pointed out the asymmetry between cross-strait industries, whether in finance or other sectors, in terms of scale, operations, and regulations. With mainland China already controlling 90% of TCM raw materials, the government must prioritize public health and industry survival by enforcing strict regulations.
Legislators Huang Shuying and Chen Ying noted the TCM industry's concerns over mainland investment. Given the Ma administration's policy of gradual opening, even if TCM is excluded in the first phase, it could be included later. Moreover, mainland investors might bypass restrictions by using proxies or third-country routes. Therefore, the industry must collaborate to block such moves, while the government should enact strict laws and ensure legislative oversight in policy discussions or ECFA negotiations.
Source: http:/ / news. chinatimes. com/ C……0706+122009093000482,00. html