Recently, at the official request of the United States, Canada detained Ms. Meng Wanzhou, chief financial officer of Huawei Company, causing a global uproar. Which side of the United States was chosen for the "Huawei" incident? What happened to Huawei?
Tsai administration has always regarded Sino US trade frictions and science and technology wars as a great opportunity to get rid of the dependence on the mainland economy, and even hoped to make profits from them. Since March this year, Tsai administration has been actively cooperating with the United States. First, in the ZTE incident, cooperate with the US sanctions on ZTE, and include it in the 'strategic high-tech export control object'; second, after Fujian Jinhua was listed in the list of export control entities by the US Department of Commerce, the Taiwan authorities immediately required Lianyungang to cooperate with the US Department of Commerce, forcing Taiwan Lianyungang to make a decision to suspend assisting Fujian Jinhua in developing DRAM process; third, cooperate with the US The U.S. technology blockade against China has pushed forward the sensitive technology protection act, setting a higher threshold for the transfer of high-tech industry investment to the mainland.
The cross strait industrial chain is an important part of the whole East Asian industrial chain. Taiwan is the direct victim of Sino US trade friction and science and technology war. Tsai administration only takes the lead of the United States. It will not only fail to win the so-called "interests", but also cause greater damage to Taiwan's economy.
First, affiliated enterprises in the island are directly damaged. In recent years, Huawei, ZTE and other brands have risen rapidly and established close cooperation with enterprises in the island. In the list of 92 core suppliers recently released by Huawei, Taiwan enterprises account for 10, including famous listed companies such as TSMC, Hon Hai and daliguang. With Huawei's mobile phone shipments surpassing Apple's in the second place in the world in the third quarter of this year, Huawei's importance to Taiwan enterprises has gradually increased. After Huawei incident, stock prices of index companies such as TSMC fell. After the Jinhua case in Fujian Province, the stock price of liandian was also greatly impacted. This case also cut off the important opportunities for the cooperative development of liandian and mainland enterprises and the expansion of the mainland DRAM market.
Secondly, Taiwan businessmen in the mainland have been greatly impacted. Among the mainland's exports to the United States, Taiwan Merchants occupy an important position. In 2016, 36% of China's top 100 export enterprises to the U.S. were Taiwanese, and the vast majority of them were ICT enterprises engaged in OEM for international brands such as apple and HP. The U.S. imposes tariffs on mainland products to directly reduce the profit space of Taiwan merchants, while the transfer of industrial chain is difficult to be carried out easily. The price rise of terminal consumer goods will lead to the decrease of sales volume and order quantity, and most of the final losses can only be borne by the agent industry and commerce.
Third, the interests of consumers in the island are damaged. In recent years, mainland brand goods have developed rapidly in Taiwan market. Huawei, OPPP, millet and other brands are deeply loved by consumers in the island. In June 2018, oppo ranked the third with 12.8% market share. In addition, the island's telecom operators expected Huawei to enter the Taiwan market from the early stage of 4G development. However, due to the restrictions of the authorities, Huawei could not engage in the core telecom network business in Taiwan, which led to the fact that Taiwan consumers could not enjoy cheaper and higher quality communication services. With the advent of 5g era, it is still difficult to break the ecological state of monopoly of European and American manufacturers in the Taiwan telecom market. Tsai administration will directly damage the interests of consumers by suppressing mainland brands through pan politicization.
Cai's act as a pawn of the United States in the "Huawei" incident has aroused strong dissatisfaction and doubt from the island's public opinion. At present, the industrial chain between the two sides of the Taiwan Strait is closely connected, and the domestic demand market in the mainland continues to expand, providing more and more development space for Taiwan enterprises. Cai is advised that the authorities should not select the United States with their own weight, otherwise the real interests of the people and the long-term development opportunities of the enterprises will be damaged.