Looking South Episode #51 – Two Year Recap and Review

In this episode of Looking South, Eric Gau chats with Bureau of Foreign Trade Director Jen-ni Yang about what the New Southbound Policy has achieved over the last two years.

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Transcript:

Eric Gau: Good morning. I’m Eric Gau, and you are listening to Looking South, ICRT’s exclusively look at the central government’s New Southbound Policy and its effects. Today, we have a very special guest, Bureau of Foreign Trade director-general Jen-ni Yang, to tell us about what the Policy has achieved over the past two years. Director-general Yang, good morning, and welcome to the program.

Yang Jen-ni: Hi, good morning, Eric, and all the ICRT listeners. I’m so glad to have this chance to talk with all of you and share the achievements of the last two years since we had the New Southbound Policy, and what is the follow-up steps.

Eric: Let’s start off by reviewing what the New Southbound Policy actually is. What are its goals and objectives, and what specific measures have been implemented to achieve those goals and objectives?

Jen-ni: As I mentioned before, the New Southbound Policy was formulated as one of the key elements in our overall economic strategy because we don’t want to just focus our exports and market on a single market, so we would like to diversify our market. And also we need to respond to the changing global economic situation and regional integration. Therefore, we have this policy. The New Southbound Policy, the main goal is we intend to achieve sustainable development through our friendly relations with our neighbor economies such as the economies in ASEAN, and also New Zealand, Australia, and India. The role of our ministry in this policy is to implement and promote our trade and how to connect industrial cooperation with those people in this area. We are looking forward to creating a sustainable partnership with the Southbound countries and realizing the spirit of reciprocity in what Taiwan can help ASEAN, and ASEAN can also be Taiwan’s friend.

Eric: What are some of the greatest achievements of the New Southbound Policy, particularly in the areas of trade and investments, talent exchange and industrial collaboration?

Jen-ni: In terms of trade, our trade with the Southbound Policy countries, last year amounted to almost 150 billion US dollars, increasing over 15 percent. And if we look at this year, from January through August, bilateral trade also increased 10 percent. Regarding investment, the number of cases in which New Southbound Policy countries invest in Taiwan between January and August increased 21 percent. The number of cases in which Taiwan invested in New Southbound Policy countries also increased 74 percent. Regarding industrial cooperation, the result of industrial chain integration with various other countries has gradually had some fruit, such as cooperation on the establishment of smart campuses, the development of industrial zones and the building of infrastructure. I think it is a very good and very concrete step that we can set up these kinds of industrial cooperation. The last point, how to promote the image of Taiwan, the whole image, to ASEAN countries? We held the Taiwan Expo in those countries to highlight the advantages of medical care, education, tourism, culture, to enhance our overall national industrial image to promote bilateral cooperation, and we hope to get positive feedback.

Eric: The New Southbound Policy has been in place for two years now. What role does it play in regional cooperation and by what means are the private sector or other main players involved in the whole process?

Jen-ni: I think our New Southbound Policy is just one to set up a platform for the private sector. That is why we expect to strengthen our role in regional cooperation and utilize our soft power to integrate resources and enhance cooperation. For example, first, in order to let those countries understand their current industrial needs, we co-host the industrial cooperation summits. We also set up novel cooperation platforms. Those platforms just help those our small and medium enterprises. They can find their counterparts in those areas. To date, we have set up some cooperation with those countries. For example, Taiwan has engaged in industrial development with India, cooperation with Thailand in the textile industry, cooperation with Malaysia on information services, and with the Philippines on shoe manufacturing and semiconductors. And then with Vietnam, we are interested in working together on the digital education industry. Furthermore, we are glad to share our experience in disaster prevention and techniques with New Southbound Policy. The purpose is we would like to train their expertise to know how to handle disasters and then the rescue workers, and encourage them to use our excellent equipment to help them to reduce the damage. Therefore, I just want to reiterate that we just set up this platform to help the private sector, to gather resources, to have more strong regional cooperation.

Eric: International affairs are currently facing many uncertainties as the China–United States trade conflict escalates. What role can the New Southbound Policy play under these circumstance?

Jen-ni: With the increasing trade tensions between the US and China, we have to vary our industry in some sectors. We have some very close relations in the supply chain. Therefore, we need to help our local industries to be fully informed of what happens in the world. We will also will help them if they would like to establish new partnerships in those countries located in our New Southbound Policy. We will help them find the locations, they would like to go and collect them and send them information. For example, our government will actively assist entrepreneurs to India, the Philippines, and other industrial zones. We would like to see whether they can have Taiwanese business clusters. In addition, we will help them develop industrial zones. We need to negotiate with their government whether they can provide our businesses with more preferential investment incentives, and then they’ll create a better investment environment for entrepreneurs. For example, recently, we see our investment cooperation arrangements with India already ratified by their Cabinet. So we will see these kinds of investment arrangements that can definitely provide good mechanisms to our investors in India, in those New Southbound Countries. Once their impact becomes apparent, I think these kinds of mechanisms can help them.

Eric: We’ve been talking with Bureau of Foreign Trade Director-general Jen-ni Yang, about everything the New Southbound Policy has done since its inception. Director-general, thank you for joining us on the air today.

Jen-ni: Thank you so much. Thank you to all the listeners. Thank you, see you next time.

Eric: And that wraps up Looking South here on ICRT. I’m Eric Gau, and thank you for tuning in.

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