Business and Finance

Taiwan’s ban on American beef, pork a trade barrier: U.S. report

Focus Taiwan
Date: 2019/03/30
By: Pan Tzu-yu and Lee Hsin-Yin

CNA file photo

Taipei, March 30 (CNA) Taiwan’s restrictions on imports of pork and beef from the United States remain a major barrier to trade between the two sides, according to a recently released U.S. report that highlights significant foreign barriers to American exports.

Taiwan has not followed international standards or a bilateral protocol with the U.S. on the issue of American meat imports, said the United States Trade Representative (USTR) report, which was released Friday.

While the U.S. and Taiwan agreed on a protocol in 2009 to expand market access and to fully reopen the Taiwan market to all U.S. beef and beef products, Taiwan flip-flopped on the agreement and amended its Food Sanitation Act the following year to ban imports of U.S. ground beef and other beef products, the report said.

“This amendment is contrary to Taiwan’s obligations under the 2009 beef protocol,” the report said.    [FULL  STORY]

TAIEX tops 10,600 on trade deal hopes

Taipei Times
Date: Mar 31, 2019
By: Staff writer, with CNA and AFP

OPTIMISM:Investors have chosen to remain upbeat on the possibility of the US and China soon reaching an agreement to end their long-running row and reduce tariffs

Local shares on Friday moved higher to close above 10,600 points amid optimism over a possible resolution between the US and China on their trade dispute, which boosted US markets overnight, dealers said.

The bellwether electronics sector led the upturn, particularly in late trading, pushing up the broader market by more than 100 points by the end of the session, the dealers said.

The TAIEX on Friday ended up 104.78 points, or 0.99 percent, at the day’s high of 10,641.04, after moving to a low of 10,525.27 on turnover of NT$120.99 billion (US$3.93 billion). That was the highest close this year, just slightly up from 10,639.07 on March 22.
[FULL  STORY]

Shoppers beware: Not all vinegars are made alike 

Formosa News
Date: 2019/03/29

Vinegar is a good source of acetic acid, which is linked to many health benefits. But not all vinegar products are alike. In a test of 20 vinegars, the Consumers’ Foundation found that not all products marketed as vinegar have enough acetic acid to meet national standards for vinegar. The survey uncovered at least one subpar vinegar product sold in supermarkets today. Shoppers are advised to check the label before making a purchase.

Vinegar bottles line the aisle, waiting for shoppers to take them home. In a test on 20 vinegar brands, one manufacturer fell short of national acidity standards.

Chiang Wen-chang
Consumers’ Foundation
National standards are different for different types of vinegars. Acetic acid has to make up more than 4 percent of the total. This test showed just 2 to 3 percent.

The maker of the vinegar that failed the acidity test has declined to comment. The law requires each type of vinegar product on the market to meet certain standards. Grain-based vinegars must have acid content above 4.2 percent, cooking vinegars above 1 percent and compound vinegars above 4 percent. Acid content for drinkable fruit vinegars must be above 4.5 percent    [FULL  STORY]

Taiwan Semiconductor founder wins lifetime achievement award

Committee of 100 names him as Global Technology Innovator

Taiwan News
Date: 2019/03/29
By: Matthew Strong, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – Morris Chang (張忠謀), the founder of chip giant Taiwan

TSMC founder Morris Chang. (By Central News Agency)

Semiconductor Manufacturing Co. (TSMC), won the Lifetime Achievement Award for Global Technology Innovation from the Committee of 100, a New York-based body involved in Chinese-American issues.

The group is a non-profit organization founded in 1990 to promote relations with Taiwan and China, the Central News Agency reported.

Chang, 87, founded TSMC in 1987, and since then the company turned into the world’s biggest contract chipmaker, with a market share of more than 50 percent. He retired from the company last year.

The Committee of 100 will hand out its awards at a ceremony scheduled for April 5 in New York.    [FULL  STORY]

Manufacturing sector shows weakness for 4th straight month

Focus Taiwan
Date: 2019/03/29
By: Pan Tzu-yu and Frances Huang 

Taipei, March 29 (CNA) Taiwan’s manufacturing sector struggled for a fourth consecutive month in February because of slowing global economic growth and a long period of inactivity during the month due to the Lunar New Year break, a local think tank said Friday.

The Taiwan Institute of Economic Research (TIER) said its composite index for the manufacturing sector rose 0.26 points in February from a month earlier to 10.18 but still registered a “blue light,” signaling contraction, because it remained below 10.5.

The TIER uses a five-color system to describe economic activity, with red indicating overheating, yellow-red showing fast growth, green representing stable growth, yellow-blue signaling sluggish growth and blue reflecting contraction.

Though the index remained in “blue” territory, it rose slightly, indicating that manufacturers may be more upbeat over their prospects the next few months, the TIER said.    [FULL  STORY]

Macronix optimistic on demand in H2

END IN SIGHT: Founding chairman Miin Wu said that a resolution to the US-China trade war would first benefit consumer electronics, followed later by smartphones

Taipei Times
Date:\ Mar 30, 2019
By: Lisa Wang  /  Staff reporter

Macronix International Co Ltd (旺宏電子) expects consumer demand to start picking up in the second half of this year amid increasing signs of easing tensions between the US and China, a company executive said yesterday.

As the world’s two biggest economies resumed trade talks this week in an attempt to resolve their trade disputes, the memorychip maker believes that a deal is starting to take shape, which would eventually lead to the cancelation of punishing tariffs and the removal of trade barriers, Macronix founding chairman Miin Wu (吳敏求) said.

As long as the trade war settles, “almost all businesses will return to normal as the uncertainty vanishes,” although the strength of the recovery remains to be seen, Wu said.

Consumer electronics would be the early beneficiary from the recovery of consumer confidence, while smartphone demand should bounce back in the second half of this year, he said.    [FULL  STORY]

Taiwan industry calls for increased investment in bridging AI skills gap

Taiwan must improve on-the-job training and foster new talent in the AI era

Taiwan News
Date: 2019/03/28
By: Huang Tzu-ti, Taiwan News, Staff Writer

Taiwan-developed AI robot showcased in CES 2018 (Photo/ITRI)

TAIPEI (Taiwan News) – A Taiwan-based AI-driven marketing company on Wednesday warned about a widening skills gap in Taiwan in the age of digital transformation, and urged the corporate world to adapt to the challenge.

In a digital development forum titled “Grow with Google,” CEO of iKala, Sega Cheng (程世嘉), called for more investment in the cultivation of talent with expertise in artificial intelligence technologies, in order for country to stay relevant in the competitive market, reports Liberty Times.

Founded in Taipei in 2011, iKala is dedicated to providing solutions to enhance marketing performance for advertisers and marketers in Taiwan, Singapore, Japan, Thailand, and Vietnam.

In fact, the government of Taiwan has diverted resources into the AI sector to keep abreast of the latest developments in emerging technology, with the establishment of AI research centers in four prominent academic institutions, including National Taiwan University (healthcare), National Chiao Tung University (smart services), National Cheng Kung University (biotech), and National Tsing Hua University (smart manufacturing), UDN wrote.    [FULL  STORY]

Tatung subsidiaries’ shares tumble ahead of delisting

Focus Taiwan
Date: 2019/03/28
By: Jiang Ming-yan, Elizabeth Hsu and Evelyn Kao 

Taipei, March 28 (CNA) A pending delisting from the local main board sent shares of financially troubled flat panel maker Chunghwa Picture Tubes Ltd. (CPT) plunging by the daily limit Thursday, as did the stocks of two other subsidiaries of Tatung Co.

The share drop occurred after CPT on Wednesday reported an after-tax loss of NT$25.28 billion (US$818.88 million) for 2018, which sent its book value down to minus NT$0.7 per share, according to a message it posted on the Taiwan Stock Exchange Corp. (TWSE) website.

As a result, CPT will be removed from the main board, in accordance with TWSE’s regulations that ban listed companies from trading on the stock market if their net value falls into the red.

CPT is likely to be delisted from the Taiwan Stock Exchange by May 8 if the debt-ridden company submits its financial statement on Thursday, according to the TWSE.
[FULL  STORY]

E Ink posts 25% growth in net profit

BALANCING ACT: The firm said about 70 to 80% of its electronic shelf label capacity for this year is booked by clients and it plans to convert its US factory to cope with demand

Taipei Times
Date: Mar 29, 2019
By: Lisa Wang  /  Staff reporter

E-paper display supplier E Ink Holdings Inc (元太科技) yesterday posted 25.48 percent annual growth in net profit for last year, as demand for higher-margin e-paper for electronic shelf labels (ESL) offset sliding e-reader demand.

Net profit jumped to NT$2.61 billion (US$84.59 million) last year, compared with NT$2.08 billion in 2017. Earnings per share climbed to NT$2.32 from NT$1.85.

The company’s board of directors has approved a proposal to distribute a cash dividend of NT$2.1 per share, representing a payout ratio of 90.52 percent.

With strong ESL growth momentum extending into this year, E Ink said it was confident that revenue would regain growth momentum this year, after posting NT$14.21 billion last year — an annual contraction of 6.58 percent.    [FULL  STORY]

China Offers Special Breaks To Attract Taiwanese Startups, But Only 1% Find Success

Forbes
Date: Mar 26, 2019
By: Ralph Jennings, Contributor

Hung Hsiu-chu (brown coat), former head of Taiwan’s Nationalist Party, and her delegation visit Vstartup, a startup group, in Beijing in 2016. (Photo: VCG/VCG via Getty Images) GETTY

Taiwan’s government says many of the island’s young entrepreneurs are ready to seek their fortunes in China because mainland officials are offering incentives for them to launch their startups in the world’s second-largest economy. China has been reaching out to Taiwan’s investors as part of its efforts to bring self-ruled Taiwan closer to the mainland. China claims sovereignty over the island, where a government opinion survey released in January showed that more than 80% of its citizens prefer autonomy.

But only 1% of the Taiwanese-backed startups in China succeed, according to Taiwan’s Mainland Affairs Council. “They’ve run into some difficulties,” says the council’s spokesman Chiu Chui-cheng. “We’ve reminded our youth to beware of the risks.”

Startups tend to fail due to a lack of savvy about China’s business environment, not the level of incentives, people close to the market say, and they tend to find success by localizing their businesses.    [FULL  STORY]