In Taipei, Talk of Arms -- and Amity
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Premier Yu Shyi-Kun hopes economic ties to the mainland will guarantee peace. If not, &quot;Taiwan has to have to ability to defend itself&quot;.
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(InfoWorld) - Taipei may have to rethink its China investment policies in the wake of an offer by a foreign group to buy the world's largest chip assembly company, Taiwan's Advanced Semiconductor EngineeringÂ (ASE). Part of the attraction of the deal is that by changing ownership, the company would cease to be Taiwanese, and therefore be allowed to invest in China as it pleases, pundits say. The trouble for many Taiwanese chip makers in recent years has been the tight leash Taipei keeps on technology investment bound for political rival China. Taiwan and China remain enemies after splitting in 1949 amid civil war. The island fears China could use chip technology to bolster its military capabilities against Taiwan. Despite the strained relationship and tough investment rules, China remains by far the favored destination for Taiwanese investment due to their shared language and culture, and China's lower costs and huge potential market. The deal for ASE, a $5.5 billion offer from a consortium led by the private equity firm Carlyle Group, would be a huge positive for ASE, transforming it into a foreign entity and allowing it to build chip assembly plants in China, according to Fubon Securities. Currently, ASE has no chip assembly investments in China, despite the fact that earlier this year Taipei gave a green light to chip makers to invest in low-end chip assembly. Despite the apparent opening, not a single application has been approved by Taipei, and companies remain unsure of how to proceed with such investment. Analysts argue that the approval process remains very much subject to politics in Taiwan, due mainly to the rivalry with China. A foreign takeover such as the one Carlyle and ASE are discussing would remove such political pressures and put China investments on the fast track. Indeed, theÂ embattled former chairmanÂ of chip foundry giant United Microelectronics, Robert Tsao, was quoted by local media as saying the possibility of such buy-outs excited him, and that UMC would welcome similar offers. Tsao is a prime example of the difficulties Taiwanese tech companies and executives face when investing in China. He and another key UMC executiveÂ resigned early this yearÂ after beingÂ indicted by Taiwanese prosecutorsÂ over their alleged role in the establishment of Chinese chip maker, He Jian Technology (Suzhou). The court case is still being heard. The government began investigating UMC over He Jian a few years ago, and fined UMC for failing to apply for permission to work with He Jian. Taipei has also leveled fines on UMC and He Jian executives. Tsao and his colleagues maintain that they have done nothing wrong. For its part, the government plans to review the possible ASE deal over its potential impact on the Taiwan Stock Exchange, since the company would likely be de-listed if it is purchased by Carlyle. Economics Minister Chen Ruey-long on Monday said Taipei needs to keep on top of the issue in case it becomes a trend, because such purchases could have long term effects on the economic development of the island. The review has nothing to do with China policy, he said.
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Taiwan leader Chen Shui-bian was accused Sunday of playing word games in his &quot;national day&quot; speech. Mainland researchers described his call for cross-Straits peace talks as &quot;more symbolic than substantial.
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TAIPEI, Taiwan - Taiwan's capital has a new most-wanted list, but those being hunted aren't murderers, rapists or thieves. They're litterbugs...
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Taiwan's President Chen Shui-bian's  surprise defeat in Saturday's legislative elections looks  likely to soothe simmering tensions with rival China, but no  breakthrough in the bitter political impasse is expected soon.
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Taiwan has a high level of consensus on the nation&#39;s independent and sovereign status. According to a survey published by the Taiwan Thinktank on Nov. 8 about the public&#39;s expectations
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Taiwan is considering applying to join the United Nations under the island&#39;s own name, a move that China would see as a provocative declaration of independence by a renegade province.
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âLee Teng-hui is the chief representative of Taiwan independence forces in Taiwan. In the international community, heâs entirely a troublemaker,â Wu was quoted as saying.
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A metal band from Taiwan, is timing its New York concerts to advocate for its countyâs quest for recognition before the world.
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The people of Taiwan Province were called on Monday to join with their mainland compatriots in the fight to safeguard national unity and counter Taiwan leader Chen Shui-bian&#39;s splittist moves.
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Taiwan's leader used his National Day speech Sunday to urge China to begin peace talks so the two rivals can avoid war. Chinese and Taiwanese leaders haven't met since the Communists took over China in 1949 and Taiwan began resisting the mainland's rule. China insists that Taiwan is a Chinese province and has threatened to attack if it refuses to unify eventually.
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The exchange of historic flights between  China and Taiwan, a rare Beijing offer to restart stalled talks  and a private visit by senior Chinese officials all point to a  thaw in tensions in one of Asia's most dangerous hot spots.
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Voters in Taiwan were set to decide Saturday whether the ruling party and its pro-independence allies will win a majority in the legislature for the first time in Taiwan&#39;s history -- a change that could bring the island closer to a
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Singapore and its close informal ally Taiwan traded barbs this week over a Taiwan referendum asking voters about United Nations membership, with Singapore calling the move "provocative" and "irresponsible."
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Taiwan&#39;s president has called for peace talks with its arch-enemy, China, in a national day speech hailed by the US as constructive.
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The president of Taiwan, Chen Shui-bian, attempted to restart peace talks with Beijing yesterday, calling for an arms control agreement and a new code of conduct to dispel the &quot;dark forces&quot; threatening cross-strait relations.
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Two gatherings in the nation's capital help point up the difference between theorizing about war--and fighting one.