Taiwanese Electrical and Electronics Manufacturers Association (TEEMA)

內容涵蓋各場次研討會主題、場次、作者、評論人及論文題目

II. Taiwanese Electrical and Electronics Manufacturers Association (TEEMA)

In promoting cross-strait common standard initiative, Taiwanese Electrical and Electronics Manufacturers Association (TEEMA) stands out as a key professional actor for ICT industry in recent years.

TEEMA established in 1948 and has been the leading high-tech industrial association in Taiwan. The production value of Taiwan electrical and electronic industries (including upper, mid and lower streams) occupies over 50% of Taiwan’s total manufacturing. TEEMA provides services to the industry located in Taiwan as well as in China. According to TEEMA, 2,874 out of 3,797 members, account for 75 percent, are Small/Medium scale companies. Recent data shows around 75 percent of total members have invested in China. Therefore, Cross-Strait Economic and Trade Services is also regarded an important mission launched by TEEMA. The services include electronic exhibition show; investment, environment and risks Survey;

organizing seminars and Cross-strait trade Visits; as well as setting up Liaison Office in China.²⁰ Most recently in July 2008, for the first time did TEEMA started a on-site consulting program for Taiwanese firms operating in China. (To be elaborated in later section)

In view of the growing competition of Cross-strait ICT industry, CNFI, TEEMA joined annual Beijing-Taipei IT Forum (Zhin Tai Ke Zhi Lun Tan) organized by Shi Ziyi, Founder of Global Chinese Competitiveness Foundation (GCCF, 1998-), also consultant to the both governments on Science Park projects in Hsin Chu and Beijing. ²¹The main goal for this forum was to seek for win-win solution in promoting Cross-strait collaboration between public and private sector. Based on personal reputation and experience in Taiwan, technocrats and business stake holders have jointly facilitate cross-Strait industrial cooperation..

Industrial Standard Associations in China

Business associations in China do not share similar historical legacy of their counterpart in Taiwan. A majority of Chinese authorities insist on a large amount of control and authority as a response to the fear that some associations might emerge as a source of political opposition. They are mostly established under the

18 ZhunYang Ribao (Central News Agency, Taiwan), Jun 26, 2000. p 1

19 Ziyio Shibao(Liberty Times, Taiwan) March 3, 2006.

20 TEEMA has already set up 5 liaison offices at Shanghai, Dalien, Xiamen, Hanjou and Kunshan, to prvide service to Taiwanese firms. Jingji Ribao (Taiwan, Economic Daily News), May 25, 2008

21 People’s Daily on Web, http://www.people.com.cn/GB/jingji/8215/28969/29867/2103225.html

industry and liberalization of the telecommunication market before WTO entry, the Ministry of Information Industry (MII) has approved the establishment a nationwide unified communications standardization organization that is compatible with international norms and Chinese situations and capable of meeting the needs in the market. Among others, China Communications Standards Association (CCSA) and China Electronics Standardization Association (CESA) are two major associations involving with cross-Strait industrial standard cooperation.

With the approval of MII and Standardization Administration of China and registered in the Ministry of Civil Affairs, China Communications Standards Association (CCSA) was established on 18 December 2002, while CESA, also approved by Ministry of Information Industry, was founded on March 31, 1993.²³ Both are national-level public association carring out standardization activities in the field of Information and Communications Technology (ICT) across China. In 2005, CCSA and CESA were designated by MII as counterparts to collaborate with SISF in organizing “Cross-strait Information Technologies Standards Forum”

for exploration of common technical standards and industrial development.²⁴ TEEMA and other major IT guru were actively participating the annual meeting since 2005. Through participation of annual forum, Taiwanese firms were able to have personal contact and sometimes closed door meetings with Chinese government officials or business leaders who attended the Taipei Forum organized by SISF.²⁵

Local politics and evolving cross-Strait party-state relations

Due to historical divide, Cross-strait economic interactions can not be deviated from domestic politics.

Especially after the lifting of Martial Law in 1987, Cross-strait trade has grown up until mid 1990s before the

“No Haste, Be Patient”(戒急用忍) policy was introduced by President Lee Teng-hui which led to division of KMT and the second half of 1990s. KMT was divided in its China policy and paid the price of loosing its ruling power to DPP government. With only a small margin of winning in the presidential election but only minority in legislative branch, newly elected DPP president Chen Sui-bien called for non-partisan National Economic Advisory Conference (NEAC) in August 2001 soon after inauguration. In the end of the non-partisan national conference, a consensus was reached with somewhat relaxed Cross-strait policy proposed by NEAC,²⁶ namely, “Active Opening, Effective Management.” At the same time, commitments of liberalization of WTO accession also boost up adjustment of Taipei’s mainland policy in 2001. (Please refer to Table 1 for more details) However, globalization of production network hastened Taiwanese capital outflow and draining competitive advantage gradually to be in favor of Chinese ICT industrial sector. More provoking policy of “Effective Management, Active Opening” by Chen Sui-bien after reelected in 2006 was announced.

Year policy Party in power

22 Interview with TEEMA advisor.

23 CESA website http://www.cesa.cn/Eng_Default.aspx

24 CCSA Annual Report 2006, p. 8. http://www.ccsa.org.cn/english/report/2006Report.pdf

25 May 25, 2008, Economic News, p. A7.

26 President Chen’s Remarks at the closing Ceremony of the EDAC,

http://www.president.gov.tw/en/prog/news_release/print.php?id=1105496925

17 Investment over US$1million requires registration with MOEA

1992 Cross-strait civilian relations(兩岸人民關係條例) stipulated KMT 1996 Lee Teng-hui announced “No Haste, Be Patient” policy: investment up

to US$50million or high technology-sector investment to be approved case-by-case.

KMT

2001 “Active Opening, Effective Management”: investment cap lifted to 40% of a firm’s total worth; direct investment was permitted;

investment approval cap raised to US$20million; list of prohibited investments narrowed (conform to recommendation of National Economic Advisory Conference )

1^st term of DPP government

2006 “Effective Opening, Active Management” policy to tighten-up Taiwanese investment to China

2nd term of DPP government 2008 “Face reality, pioneer a new future, shelve controversies and pursue a

win-win solution”; Resuming Negotiations between the SEF and ARATS

KMT back to power

Table 1: Evolution of mainland policies in KMT and DPP government from 1985-2008

When business environment was deteriorating, Taiwanese SMEs are desperate for government support.

However, DPP government was handicapped in providing timely assistance due to the controversy of “1992 consensus.” One the other hand, KMT technocrats and business leaders or associations found their common interest in cross-strait industrial cooperation. To engage or not to engage with China became the major debate of 2008 presidential campaign between KMT and DPP candidates. Landslide victory by Ma Ying-jeou, KMT candidate, won him legitimacy for engagement and “normalization” of cross-strait relations based on

“1992 consensus”, namely, both sides recognize there is only one China - both mainland China and Taiwan belong to the same China, but both sides differ on the definition of that one China.²⁷

During the passing eight years of DPP administration, KMT acquired some “shadow-state” capacity in negotiating with Chinese government through Lien-Hu meeting on facilitating base. In fact, shadow-state-business relations across Taiwan Strait even contributed to the fast track deal between SEF and ARATS on “weekend direct flight”(Zhoumuo Zhihan Baozhi) right after Ma sworn into office. It is only natural that the transitional role of Party-to-Party platform gradually taken over by SEF-ARATS platform.

That explained why Chiang Ping Kun had to resign from his chairman position of SISF after taking office at SEF.

Trans-border state-business collaboration: KMT-CCP platform

In absence of consensus for reciprocal state-to-state negotiations, government officials needed private capacity for their cross-strait visit. For instance, when Zhu Li-lan(朱麗蘭), former Chinese Minister of Science and Technology, visited Taiwan in 1998, She was invited by ITRI in private capacity as professor of Beijing University. None the less, after DPP took over the administration, such high level government visits were stopped. The major break through was party-to-party dialogue in 2005, when KMT party leaders, former government officials, were able to meet with Chinese government officials. Thanks to its private citizen status, KMT leaders and ex-technocrats were able to attend to the need of business sector in meeting

27 Taiwan’s Leader Outlines His Policy Toward China. The New York Times, June 19, 2008.

http://www.nytimes.com/2008/06/19/world/asia/19taiwan.html?ref=asia

relations for coming election. In order to beef up KMT popularity, Chinese leaders endorsed a constructive cross-Strait policy in Lien-Hu meeting. In preparation for the meeting, KMT vice chairman was able to include, for the first time, common standard cooperation into 12 point consensus with strong support of Chinese Vice Premier Wu Yi. The collaboration itself demonstrated KMT’s accountability to business’s requisition through the endorsement of Chinese government. To some extend, Chinese government has facilitated trans-border state-business partnership through CCP/KMT peace talk which would have been infeasible when in power.

In recent years, Cross-strait state-business collaboration is growing with stringent business environment in Mainland China. The newly stipulated Labor law; income tax; environment regulations; rising energy price and appreciation of RMB, a hardship situation for Taiwanese business in China. Under Ma administration, Investment Commission of MOEA initiated a packaged project of consulting for Taiwanese firms operating in China. The program involved on-site consulting service by TEEMA representative together with know-how from Non-profit Institute associating with MOEA, including Industrial Technology and Research Institute (ITRI), Institute of Information Industry (III) as well as lawyers, accountants and Venture Capitalist.²⁸ The main purpose was to provide pertinent guidance to those Taiwanese Small and Medium Enterprises (SMEs) how to survive in a less friendly business environment in China. According to the project organizer, not only Taiwanese SMEs swarmed in each consulting program, local colleagues of Taiwan Affairs Office paid their interest in the same programs.²⁹ Their participation actually strengthens networking and partnership among state and business actors across the Strait.

Figure two illustrates the two level of state-business collaboration across the Strait. Before 2008 during Chen’s administration, KMT-CCP dialogue provided a convenient platform for Cross-strait common standard initiative. However, after KMT took office, para-state to state dialogue was resumed. Cross-strait state and business relation has been conducted through SEF/ARATS platform with subordinating support from SISF.

28 Lienhe Bao(United Daily, Taiwan) June 24, 2008; Zhun Guo Shibao (China Times, Taiwan) August 6, 2008

29 Zhongguo Shibao(Taiwan), August 6, 2008.

Figue 2: State-business relations before and after 2008

Cross-Strait Common Standard VS “Wintel” standard

Highly integrating structure of ICT industrialization across the Strait, China could be either opportunity or threat for Taiwan. In its initial stages, China’s ICT industrial development relied profoundly on Taiwan in building up manufacture capacity and industrial cluster. In addition to sharing administrative know-how of ex-technocrats, Taiwanese venture capitalist contributed to China’s technological development by assisting local Chinese venture capitalist in selecting promising start-ups. Usually, in contrast to their counter part from Silicon Valley who targets on technology-light but profitable service, Taiwanese VCs looked for start-ups with innovative technology. ³⁰ Furthermore, significant numbers of engineers in Chinese semiconductor industry has been employed and trained in Taiwan who moved to China for second career. Take Grace and SMIC(Semiconductor Manufacturing International Cooperation) for example, both were founded by experienced Taiwanese engineers in 2000 and quickly grown up to be two of the largest semiconductor manufacturer in China. SMIC is now the third largest foundry globally.

When the biggest puzzle for Chinese and Taiwan is to balance strong economic interdependence with political rivalry, Taiwan-First has always been a convenient justification for techno-nationalism among politicians. “No Haste, Be Patient” of Lee Deng-hui and “Active Management, Effective Opening,” policy of Chen Sui-bian administration are two exemplary cases. However, a developing trend of “network economy”

in information age sometimes invalided nationalistic economic policy, including developmental initiative of

30 Douglas B. Fuller, 2008. The Cross-strait Economic Relationship’s impact on Development in Taiwan and China: Adversaries and Partners. Asian Survey. 168:2. 239-264 p. 261.

Chinese Business

Taiwanese Business KMT-CCP

platform SISF/CCSA

/CCEA Post-2008

Pre -2008

In another words, the real threat to China and Taiwan is cooperate-globalism instead of techno-globalism.

They have two choices to either team up to confront with “Wintel standard coalition” like the case of Wireless LAN authentication and Privacy Infrastructure (WAPI) standard solution, or join in international standard coalition on their own respectively in developing stage of new standard. Chinese Datang Telecom took the initiative in setting native 3G mobile phone standard by teaming up with Siemens, international company with leading mobile technology. In 2000, Chinese indigenous 3G standard - TD-SCDMA was accepted by International Telecommunications Union (ITU) as one of the three world standards other than CDMA 2000 and WCDMA. In contrast, another indigenous wireless standard - WAPI failed due to lack of transparency and compulsory policy against international standard. Together with their counterparts in Mainland, a handful of Taiwanese chip and system companies have been working with China to implement the standard, including Acer, BenQ, in the developing stage. Apparently, WAPI was not a successful experience for cross-Strait cooperation.

Likewise, Taiwan government also has its own agenda of ICT standardization. To team-up with leading Wireless Communication standard, Taiwan’s Ministry of Economic Affairs (MOEA) choose to signed a cooperation agreement with Intel Corporation of the United States in mid October of 2005 to promote World Interoperability for Microwave Access (WiMAX)³² wireless broadband technology and applications in Taiwan. From 2005-2008, DPP government has spent approximately US$ 664 million on WiMAX development under the “M-Taiwan” National Plan -- the second highest investment amount in the world. ³³It also launches a WiMAX standard forum in 2007.³⁴ Up to November 2007, MOEA has signed a memorandum of understanding (MOU) with nine major telecom equipment companies to co-develop WiMAX technology and applications, including Intel, NEC, Nortel, R&S., Alcatel-Lucent, Motorola, Nokia-Siemens Networks (NSN), Sprint-Nextel, and Starent Networks Corp. ³⁵ Nortel, Alcatel and NECalso set up WiMAX R&D Centers in Taiwan.³⁶ For the first time in July 2008, WiMAX was put on the agenda for cross-strait collaboration on the 11th Zhintai Kezhi Luntan in Taipei. However, the reaction from Chinese participants was half-hearted. The concern given by Chinese panelist was the overlapping of radio spectrum with TD-SCDMA which happens to be first home-grown ICT standard.³⁷ In a word, common standard initiative might not

31 Zhou, 2006.

32 Technically, Both wireless local area network (WLAN) and WiMAX are developed by Intel. the WLAN standard allows broadband Internet access over short distances only, while WiMAX can transmit for up to fifty kilometers. However, Intel executives have said that these two technologies will coexist, rather than WiMAX becoming the sole standard, with WLAN used for last-mile access. Therefore the two are complimentary to each other.

33 Website of MOEA (Taiwan) http://investintaiwan.nat.gov.tw/en/news/200711/2007110901.html

34 A total of 170 companies in Taiwan have joined together to form an industry association that will promote WiMAX wireless broadband technology. Lin Long-song, president and general manager of the Intel Innovation Center in Taiwan, were appointed deputy chairperson of this association. The main function of this forum is to enhance cooperation between up-, mid- and down-steam enterprises, integrate academic resources, establish a national WiMAX experimental network, and open a WiMAX testing and certification laboratory in Taiwan.Website of MOEA (Taiwan)

http://investintaiwan.nat.gov.tw/en/news/200411/2004110901.html

35 Website of MOEA (Taiwan) http://investintaiwan.nat.gov.tw/en/news/200711/2007110901.html

36 Website of MOEA (Taiwan) http://investintaiwan.nat.gov.tw/en/news/200804/2008041601.html

37 View point of professor Zhuang Zishin, a participant in the 11th Zhintai Kezhi Luntan on “Cross-strait Wireless City” organized by TEEMA Communication Industry Alliance and Beijing Information and Telecommunication Association in Taipei, on July 17, 2008.

mobile carrier has decided to work with Taiwan's Industrial Technology Research Institute (ITRI) to develop 4G technologies. Wang Jianzhou(王建宙), chairman of the state-run Chinese company, was also exploring opportunities to forge alliances with local high-tech enterprises to open up the vast mainland China market to advanced telecommunication products. Wang has signed a memorandum with Taiwan's handset maker HTC Corp. to jointly develop smart-phones and relevant technologies, and met with many local high-tech tycoons in Taipei.³⁸

In Taiwan, the Common standardization itself can also be divided from partisan perspective. DPP legislative Lin Cho-Shui (林濁水) ridiculed the active role of Sinocon Industrial Standards Foundation (SISF) in serving as platform for Chinese counterpart to share Taiwan’s cutting–edge technology with state-run ITRI.

He questioned the integrity of Chiang Pin-Kung who used to be chairmen of Sinocon has now been appointed chairman of SEF by Ma’s government.³⁹ From DPP’s perspective, Greater China standard itself is Techno-nationalism in favor of Chinese corporation. From KMT’s perspective, Greater China Standard will benefit Taiwanese industry in unlocking from “Wintelism”.⁴⁰ Whether or not Taiwan should go for Cross-Strait common standard or team up with international leading industrial coalition might be an on going debate between the two political camps in the future.

Also in China, there were debates on the wisdom of state-led standard strategy after the WAPI episode.

Much of Chinese industry and government increasingly recognize the need to be more transparent and receptive to choice of international market during the standardization process. How would cross-Strait standard cooperation be accepted as common interests to state and business? Apparently, WIMAX was Taiwan’s agenda which does not appeal to Chinese counterparts. Tehno-nationalism does not necessarily lead to better chance of standard cooperation. It was the market potentiality that counts. 4G technology cooperation was the best exemplar.

Figure three illustrated two approaches of Cross-strait standard competition and cooperation. For Cross-strait Standard cooperation, state-business collaboration through state-led channel has been applied as shown on the upper half of diagram. For international standard approach, international standard coalition was chosen as shown on the bottom half of diagram. During DPP administration, these two paralleled approaches were conducted concurrently by state and business level respectively. After the turn of government when KMT is in power again, President Ma Ying-jeou announced in an interview with The New York Times that the specified common technical standards for the high-tech industry had been on agenda for future negotiation.⁴¹

38 China Mobile to work with Taiwan on 4G technology, Taiwan News, 2009-08-27.

http://www.etaiwannews.com/etn/news_content.php?id=1041736&lang=eng_news

39 Lin Cho-Shui, “Wang Jin-pyng’s unusual move,” Taipei Times. July 1, 2008. p.8.

40 Wintelism, derived from Windows and Intel, reflects the success of Microsoft's Windows in operatingsystems and Intel's CPU in the computer processor market. Wintelism argues that market competitionhas shifted away from final assembly and vertical control of markets by traditional corporations suchas IBM as well as Japanese Keiretsu trading groups. Taking the computer industry as an example,Wintelism sees that current market competition can happen anywhere in the production value-chain,including components, subsystems, system assembly, operation software, and applications software.These traditionally integrated system elements "become separate and critical competitive markets" Michael Borrus and John Zysman, Wintelism and the Changing Terms of Global

在文檔中技術標準設定的新制度分析-中國推動WAPI 的個案研究(II) (頁 43-53)