2007/06/221 WORKSHOP ON CHINA, TAIWAN AND THE FUTURE OF THE DEVELOPING WORLD June 22-23, 2007 “ Is there role for Taiwanese firm in the China ’ s national

2007/06/22 1

WORKSHOP ON CHINA, TAIWAN AND THE FUTURE OF THE DEVELOPING WORLD

June 22-23, 2007

“Is there role for Taiwanese firm in the China’s national standards strategy?

Techno-nationalism VS

Techno-globlism”

By Hwei-luan PoongAssociate Research Fellow

Institute of International RelationsNational Chengchi University

[email protected]

2007/06/22 2

Questions To what extend does states across the Taiwan strait

facilitate or obstruct cross-strait techno-globalism? How would domestic politics shape cross-strait co

mpetition or cooperation? To what extend does techno-globalism shape natio

nal or local high-tech policy? Can standard setting strategy facilitate cross strait r

econciliation? What are the impact of political and economic facto

rs on cross-strait joint effort in international standard setting.

2007/06/22 3

Power structure of IT standard setting

Taiwan

China

US

US Core Technology & Global Market

China Domestic Market& Third World market

Taiwan Global OEM/ODM Application & Marketing

Comparative advantage

2007/06/22 4

Four preference for SS game

Techno-globalism Global corporatism Techno-nationalism Neo-techno-nationalism

2007/06/22 5

Techno-globalism State led liberal international economy Internationalization of industrial

activities due to technological needsPolicy and Corporate strategies under free trade agreement

Goals

TradeFDIInternational licensing Cross-border alliances

Increasing returns on R&D expenditureSharing R&D costs

2007/06/22 6

Global corporatism

Private economic practice seeking to perpetuate the interests of the

largest western corporations through controlling path of technology development Microsoft, Intel … Wintelism

2007/06/22 7

Global corporatism(market-led)

Techno-globalism(state-led)

Neo-techno-nationalism(market-led)

(A1,B1) (A1,B2)

Techno-nationalism(state-led)

(A2,B1) (A2,B2)

Standard setting (SS) game of competition and cooperation

Leading State B

following State

A

2007/06/22 8

Techno-nationalism

Driven by political or ideological concern for maintaining domestic technological competitiveness

Government policies goal

R&D subsidies, Non-tariff barriers, Trade-related investment measures, antidumping measures, export financing

National security &technological competitiveness

2007/06/22 9

Neo-techno-nationalism Driven by commercial interest to enhance

national S&T capabilities To improve the national position in

international division of labor*

Government policies goal

Coordination, capital support and collective bargaining with the MNCs

National security & technological competitiveness

2007/06/22 10




(4, 4) (3, 3)

Techno-nationalism(state-led) (2, 1) (1, 2)

SS game between US & China

US

China

2007/06/22 11

SS game between China & Taiwan

China

Taiwan




(3, 3) (2, 4)

Techno-nationalism(state-led) (4, 2) (1, 1)

2007/06/22 12

SS game between US & Taiwan

US

Taiwan


Techno-globalism (state-led)


(3, 3) (1, 4)

Techno-nationalism (state-led) (4, 2) (2, 1)

2007/06/22 13

SS competition between China and US

Dancing with dragon? – North competition for market with high-end technology sharing with China Siemens Alcatel Erickson Nokia

Techno-globalism of China in South Techno-globalism in South-south trade Economic aid with business

Structuralist approach were applied for enhancing competitive technology usually led to international retaliation and pressure for trade talk

2007/06/22 14

SS interdependence in standard development across strait

Chinese market and state led national standard setting strategy

Comparative advantage of Taiwanese IT firms Global Logistic Management Model Global OEM/ODM Application

2007/06/22 15

Major actors of SS regime for cross–strait standard development KMT led Sinocon Fou

ndation( 華聚產業共同標準推動基金會 )

Individual Taiwanese firms investing in China

Chinese Ministry of Information Industry

China Electronics Standardization Institute (MII)

China Telecom Standardization Institute

State-owned enterprises

2007/06/22 16

Taiwan’s choice DPP

Go for American standard

Restriction on asymmetric dependency

State-owned enterprise side with US position

Allies with China’s competitors, i.e. India

KMT Go for Chinese

standard Close interaction with

MII and public institution

Private enterprises actively involved in Chinese SS Strategy

Quick follower of Chinese standard

2007/06/22 17

China’s choice State-led favoritism

toward Taiwanese firms Information sharing Early stage of

standard application Domestic and Third

world market sharing

Private-led consortium To lure MNCs to work

with Chinese standard

Marginal role for Taiwanese firms in SS stage

2007/06/22 18

Conclusion Chinese government has been actively promoting Chinese

standard in developing countries during state visit Timing for cross strait cooperation in SS strategy is fading

away Techno-nationalism led by DPP government would obstruc

t global logistic management of Taiwanese firm Techno-globalism (appeasing policy) led by KMT might dee

pen asymmetric dependency The role for Taiwanese firm in China’s SS strategy would

base on neo-techno-nationalism from both sides of the strait

Documents

2007/06/221 WORKSHOP ON CHINA, TAIWAN AND THE FUTURE OF THE DEVELOPING WORLD June 22-23, 2007 “ Is there role for Taiwanese firm in the China ’ s national