Xi unable to solve economic woesBy Paul Lin 林保華As China’s economy was meant to drive global economic growth this year, its dramatic slowdown is sounding alarm bells across the world, with economists and experts criticizing Chinese President Xi Jinping (習近平) for his unwillingness or inability to respond to the nation’s myriad mounting crises. On the point of ideology, austerity has been at the heart of China’s revolutionary tradition of economic development. Deng’s reforms unleashed an economic boom in the 1970s that turned China into the “world’s factory” over the next 40 years. Xi thought economic growth was a given and even thought of keeping the nation under lockdown, while failing to understand that the Chinese economy can no longer develop in isolation from the world. Xi then slowly made his way up the hierarchy in Fujian and Zhejiang provinces, and then Shanghai as the Chinese economy picked up steam, especially in coastal areas.

Flu cases increase, seven deaths reportedSEVERE CASES: Among 35 severe influenza cases, three children who developed flu-like symptoms were suspected to have encephalitis, a CDC physician saidBy Lee I-chia / Staff reporterInfluenza activity is increasing, with more than 100,000 hospital visits for flu-like illness last week, 35 cases of severe flu complications and seven flu-related deaths, the Centers for Disease Control (CDC) said yesterday. Thirty-five cases of severe flu complications were reported last week, he added. CDC data showed that from Oct. 1 last year to Monday, there were 699 confirmed cases of severe flu complications, with 452 infected with H1N1 and 81 percent having underlying health conditions. Guo said that 2,016 local cases of dengue fever were reported last week, with 1,849 cases in Tainan. Three deaths from the disease were reported, all people in their 70s, he said.

BRI loses momentum; US gainsBy Antonio GraceffoChina’s Belt and Road Initiative (BRI) is losing its luster, paving the way for enhanced US diplomatic and economic engagement as a BRI alternative. However, about 60 percent of BRI nations face economic distress due to rising trade deficits, increased debt and a slowing global economy, making China the lender of last resort. For every US$1 of aid China provides, it creates US$9 of debt. The US will not engage in a foreign aid “arms race.” Instead, it offers diverse alternatives, eroding China’s appeal and addressing the BRI from multiple angles. Antonio Graceffo, a China economic analyst who holds a China-MBA from Shanghai Jiaotong University, studies national defense at the American Military University in West Virginia.

EDITORIAL: Surviving the Chinese chip driveMore Taiwanese semiconductor companies, from chip designers to suppliers of equipment and raw materials, are feeling the pinch due to increasing competition from their Chinese peers, who are betting all their resources on developing mature chipmaking technologies in a push for self-sufficiency, as their access to advanced nodes has been affected by US tech curbs. That is an extreme case showing how determined Chinese semiconductor companies are to develop their own technology, advanced or mature, to reduce overseas reliance at any cost. Such determination is deeply felt by Taiwanese semiconductor companies across the whole supply chain. Taiwan’s leading semiconductor companies might be affected later, but contract chipmakers focusing on mature technologies are already feeling the pinch. Competition is worsening as more Chinese companies enter the market.

MOFA’s Resolution 2758 appealBy Lin Tzu-yao (林子堯) and Cathy FangThe Ministry of Foreign Affairs (MOFA) recently held a press conference to unveil an action plan with four pillars regarding UN Resolution 2758. Coincidentally, the US Congress passed the Taiwan International Solidarity Act (TISA), aligning with MOFA’s demands and providing a timely boost for proactive and bold planning. Two significant aspects of Resolution 2758 should be considered. Previously, governments around the world, including the US, have taken a somewhat reserved approach to the question of whether Resolution 2758 applies to Taiwan’s status. We must safeguard the rights of Taiwanese citizens within the UN and reject any efforts by China to distort Resolution 2758.

EU concerned about reliance on Chinese lithium batteriesReuters, MADRIDThe EU could become as dependent on China for lithium-ion batteries and fuel cells by 2030 as it previously was on Russia for energy before the war in Ukraine unless it takes strong measures, a paper prepared for EU leaders said. The document, obtained by Reuters, would be the basis of discussions on Europe’s economic security during a meeting of EU leaders in Granada, Spain, on Oct. 5. Employees work on a production line of lithium-ion batteries for electric vehicles at a factory in Huzhou, China, on Aug. 28, 2018. “This will skyrocket our demand for lithium-ion batteries, fuel cells and electrolyzers, which is expected to multiply between 10 and 30 times in the coming years,” said the paper, prepared by the Spanish presidency of the EU. Lithium-ion batteries and fuel cells were not the only areas of EU vulnerability, the Spanish presidency paper said.

Boozy chocolates sell out as new craze hits ChinaBloombergAlcohol-infused chocolate balls are the latest item to take over China’s social media as consumers clamor for the surprise tie-up between liquor giant Kweichow Moutai Co (貴州茅台) and Mars Inc’s Dove brand. Despite some social media complaints about the high price, the chocolates are also proving popular on resale platforms, where 12 chocolates are selling for 500 yuan, according to local media reports. The partnership follows Luckin Coffee Inc’s (瑞幸咖啡) popular launch earlier this month of an alcohol-infused latte, with Kweichow Moutai wanting to appeal to a younger demographic. An advertisement promoting a Kweichow Moutai liquor latte is pictured at a Luckin Coffee store in Beijing on Sept. 4. “No matter how the time changes and how consumption is upgrading, Moutai started with liquor and will focus on liquor.”

Chinese drills showcased for the US, not TaiwanPACIFIC OCEAN: Defense experts have warned that the ‘Shandong,’ China’s second largest aircraft carrier, poses a serious threat to eastern Taiwan’s defensesStaff Writer, with CNAThe drills conducted by the Chinese aircraft carrier Shandong in the Western Pacific last week were more aimed at showcasing China’s military capabilities to the US rather than toward Taiwan, a Taiwanese defense expert said yesterday. Lin said that the latest Chinese drills coincided with a joint maritime exercise conducted by the US, South Korea and Canada that happened on the Yellow Sea on Thursday. This undated handout photo released by the Taiwan Defense Ministry on September 13, 2023 shows Chinese aircraft carrier Shandong, left, while being monitored by a Taiwanese Keelung class warship at sea. Photo: Taiwan Defense Ministry / AFPThe People’s Liberation Army (PLA) did not make more details of the Shandong drill public. The Shandong is China’s second aircraft carrier, and the first to be entirely built by its domestic shipbuilding industry.

Diaries of Chiang Kai-shek, Chiang Ching-kuo returnStaff Writer, with CNAThe diaries of former Republic of China (ROC) presidents Chiang Kai-shek (蔣介石) and Chiang Ching-kuo (蔣經國) arrived in Taiwan on Thursday, and are to be published by Academia Historica from October, the state archives said. Academia Historica president Chen Yi-shen stands next to boxes containing the diaries of former presidents Chiang Kai-shek and Chiang Ching-kuo in Tapei on Thursday. Chiang Fang and other family members began transferring ownership of the diaries to Academia Historica in 2013, making the state archives the official custodian, the archives said. The Chiang diaries are one of the most requested items by researchers and contain decades of valuable political and foreign policy insights of Taiwan’s past leaders, the institute said. Academics using the diaries have revised and expanded the understanding of modern China, the Cold War and global history, it said.

EDITORIAL: Hard look at income growth neededThe Executive Yuan last week approved a Ministry of Labor proposal to raise the monthly minimum wage by 4.05 percent to NT$27,470, and the minimum hourly wage by NT$7 to NT$183. It is the eighth consecutive year that the minimum wage has been raised since President Tsai Ing-wen (蔡英文) took office in 2016. Last week, Premier Chen Chien-jen (陳建仁) also demanded that the Ministry of Labor swiftly examine whether further revisions are necessary for an existing draft proposal for minimum wage legislation. Moreover, the latest wage increases affect only 2.39 million workers, accomplishing nothing for about 80 percent of the nation’s salaried workers who earn above the minimum wage. The solution to the low wage problem also demands closer and more effective dialogue among unions, social groups, enterprises, education institutions and government agencies.

Employees of Chinese developer Evergrande arrestedAFP, BEIJINGPolice in China have arrested several employees of a subsidiary of troubled Chinese property giant Evergrande Group (恆大集團), authorities said on Saturday. Employees at Evergrande’s financial subsidiary, Evergrande Financial Wealth Management Co (恒大金融財富管理), were arrested, police in the southern city of Shenzhen said in a statement, without specifying the number of employees or the charges against them. The police have arrested several employees of a subsidiary of the troubled property giant, authorities in the southern city of Shenzhen said in a statement on Saturday, without specifying the number of employees or the charges against them. Another Chinese property giant, Country Garden Holdings Co (碧桂園), has narrowly avoided default in recent months, after reporting a record loss and debts of more than US$150 billion. Meanwhile, Moody’s rating agency on Thursday downgraded the outlook for China’s property sector from “stable” to “negative,” arguing that the government support measures will have only a short-term impact.

US support to Taiwan not for granted: HouStaff Writer, with CNANew Taipei City Mayor Hou You-yi (侯友宜), the Chinese Nationalist Party’s (KMT) presidential candidate, who is on an eight-day trip in the US, on Friday said that he would not take Washington’s support of Taiwan for granted. Chinese Nationalist Party (KMT) presidential candidate Hou You-yi, fourth left, poses for a picture next to a statue of Republic of China founder Sun Yat-sen at Columbus Park in New York on Friday. During his stay in New York, Hou also met with a group of overseas Taiwanese and told them he was determined to protect the Republic of China (ROC) and pass on Chinese culture to future generations. After his trip to New York, Hou is to visit Washington from tomorrow to Tuesday to meet with AIT Chair Laura Rosenberger as well as academics from the Brookings Institution and the Heritage Foundation, and US lawmakers. The trip to the US has been described by Hou’s office as a “journey of dialogue and deepening friendship.”

XT112 rifle testing to finish before the year endsStaff Writer, with CNADevelopment and testing of the XT112 rifle, which is set to replace the existing models used by Taiwan’s military, would be completed this year, the Ministry of National Defense’s Armaments Bureau said on Friday at the 2023 Taipei Aerospace & Defense Industry Exhibition. The entirely domestically developed and built rifle features numerous improvements over the T91 and T65K2 models, said Lieutenant Lee Chien-ting (李建霆), who is involved in the research and development of the rifle at the bureau. The barrel of the XT112 rifle is thicker than the T91 and T65K2 models, resulting in the XT112’s improved accuracy. The XT112 shoots groupings of 9.8cm from a range of 100m compared with the T91’s groupings of 14.5cm at 100m, Lee said. The XT112s are expected to undergo operational testing this year and if they pass would gradually replace rifle models in use across military services, Lee said.

Inside the South Korean factory that could be key for UkraineDespite a government policy not to provide weapons directly into ongoing conflicts, South Korean products have the advantage of having been deployed at home due to its situation with North KoreaBy Kang Jin-kyu / AFP, CHANGWON, South KoreaAt a sprawling South Korean arms factory on Friday, a high-tech production line of robots and super-skilled workers were rapidly churning out weapons that could, eventually, play a role in Ukraine. An engineer works on a K9 howitzer at the Hanwha Aerospace factory in Changwon, South Korea, on Friday. An engineer works on a K9 howitzer at the Hanwha Aerospace factory in Changwon, South Korea, on Friday. Hostilities in the 1950 to 1953 Korean War ended with an armistice, not a peace treaty, and Seoul remains technically at war with nuclear-armed Pyongyang. ‘GREAT VALUE’The export of South Korean weaponry, especially the K9 howitzers, would be “of great value to Kyiv,” he said.

Ko’s latest proposal a non-starter for KinmenBy Huang Di-ying 黃帝穎Taiwan People’s Party (TPP) Chairman and presidential candidate Ko Wen-je (柯文哲) has proposed turning Kinmen into an “experimental zone” for peace between Taiwan and China. Yet no matter which administrative district is chosen for such an experiment, it would be unconstitutional to put Ko’s proposal in practice, namely, carrying out political and social experiments in relation to autocratic China. Ko’s proposal not only goes against the Constitution’s concept of “defensive democracy,” but also demonstrates how Ko lacks even a basic understanding of democracy and the rule of law. Given that the Constitution is entirely based on the order of a liberal democracy, Ko’s proposal is clearly unconstitutional. When countries across Europe were redesigning their constitutions, “defensive democracy” was emplaced to prevent the self-destruction or damage of their “constitutional order of liberal democracy.”Ko’s proposal would damage Kinmen’s “constitutional order of liberal democracy,” hence it violates the Constitution’s “defensive democracy.” Ko’s proposal is by all means unconstitutional.