Xinhua Insight: Protests, slack economy cast doubt on Taiwan authority's policies

One month after Taiwan's new leader Tsai Ing-wen assumed office, the island is not short of protests and disputes over policy reversals, and businessmen increasingly complain about the dawdling economy.

Tsai, leader of the Democratic Progressive Party (DPP), is refusing to recognize the 1992 Consensus, the political foundation for peaceful relations across the Taiwan Strait for the past eight years.

THE LADY IS FOR TURNING

On May 31, the island's education authority withdrew certain textbooks which were revised slightly in 2013. The 2013 changes included replacing the phrases "Japanese rule" with "Japanese colonial rule," and changing "Chinese takeover of Taiwan" to "recovery of sovereignty over Taiwan."

The DPP had objected to the changes at the time and abolished the revised version as soon as possible after coming to power. The move is seen as part of a push for "cultural independence."

More reversals came in the dropping all criminal charges against 126 students who occupied the executive authority building in March 2014 protesting about a cross-Strait trade deal.

"Political meddling in a legal case will undoubtedly damage the seriousness and authority of law," said Sandy Yeh, secretary general of the Chinese Police Research Association in Taiwan.

Regarding the status of the Okinotori Atoll, which Japan wants to call an "island," the authority claims that its status is "undecided," in contrast to the previous position that it is just a reef and does not entitle Japan to a 200 nautical-mile exclusive economic zone. A Taiwanese fishing boat was seized by Japan near the atoll in April, prompting previous leader Ma Ying-jeou to dispatch vessels to protect fishermen there.

The DPP stance led to protests by hundreds of fishermen in front of the party's headquarters in downtown Taipei in late May.

Lin Chuan, head of Taiwan's new executive authority, is now considering reactivating a nuclear power plant, contradicting the DPP anti-nuclear power pledge.

Lin angered people again in early June when he said that some comfort women in Taiwan were possibly volunteers. His remarks were widely criticized, and he was forced to apologize.

SLACK ECONOMY

Taiwan's exports contracted 9.6 percent in the year ending in May, the latest contraction in a sequence of 16 straight months. Export orders fell 5.8 percent, the 14th consecutive month of contraction.

Weak exports and structural problems make even 1 percent growth unlikely this year, compared with an annual average of 2.5 percent over the past five years.

Cathay Financial Holding Co. on Tuesday halved its 2016 growth forecast for Taiwan from 1.6 percent to 0.8 percent, citing continued weakness in exports and investments. Yuanta-Polaris Research Institute on Thursday lowered its forecast from 1.42 percent to 0.9 percent.

In her inaugural address on May 20, Tsai spoke of a new "go-south" policy to access markets in ASEAN and south Asian countries like India and to reduce the island's reliance on the mainland. The policy has met with "indifference" by businesses, as shown in a survey by human resources firm 1111 Job Bank.

The survey showed 41 percent of firms did not know what the policy entailed, 41 percent either felt pessimistic or had a wait-and-see attitude. Only 18 percent supported it. Daniel Lee, vice president of 1111 Job Bank, attributed the attitudes to a lack of concrete measures on the policy. The survey also showed only 54 percent of firms with recruitment plans in Q3, the lowest percentage since 2011.

"Stability of cross-Strait relations is essential if Taiwan is to get out of economic trouble," said Lee Wo-chiang of Tamkang University in New Taipei City.

Taiwan businessmen have favorable environment on the mainland. The "go-south" policy is simply seeking from afar and neglecting what lies close at hand, said Wang Ping-sheng, head of of the Association of Taiwan Investment Enterprises on the Mainland.

The mainland authorities have made it clear that only affirmation of 1992 Consensus can ensure current levels of exchange between the two sides.

Lee Wo-chiang suggested Taiwan implement the cross-Strait service trade pact earlier and accelerate talks on a commodity trade pact.

Delaying the pacts will only do harm to the island's economy, he said. Endi