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Ex-president frowns on looser regulations

Ex-president frowns on looser regulations

Former President Lee Teng-hui (李登輝) expressed disapproval of the government's decision to allow local chipmakers to set up 8-inch wafer plants in China, warning the practice would facilitate capital flow across the strait and dull Taiwan's competitive edge against its cross-Taiwan Strait rival.
The Mainland Affairs Council and Ministry of Economic Affairs announced the policy Friday, which won immediate applause from the country's largest chipmaker, Taiwan Semiconductor Manufacturing Corp. TSMC first applied to build an 8-inch wafer plant in China to produce 0.18-micron circuits in 2005 and said the new measure would significantly enhance its competitiveness in China.
But Lee voiced concern that Taiwan's IT industry may suffer a business slump as a result of the policy change. He noted that there are no developing industries in Taiwan now as an increasing number of them have relocated to China in recent years, attracted by cheap land and labor costs there.
Lee said that in doing so, local and foreign investors are helping the communist state create an economic miracle as the island enjoyed in the 1980s.
Lee also frowned on the plea by local businesses to lift the cap on China-bound investment, branding it a fake remedy to the predicament facing Taiwan's industries.
Currently, local companies are allowed to invest up to 40 percent of their net worth in China.
Lee noted that Taiwan has suffered a lack of investment and spending, as most people prefer to save their money in banks. The former president attributed the phenomenon partly to the Democratic Progressive Party government's lackluster performance and partly to the boycott of public policies by the opposition parties.
He said the solutions to the problems lie in a leader with vision, a government with well-charted goals and people staying united.
Lee made the comments while speaking at the Lee Teng-hui Academy in Danshuei, Taipei County.


Updated : 2021-07-29 03:25 GMT+08:00