C.K. Wang Guiding TAITRA to Refocus Its Strategies

After less than a half-year since taking over as the chairman of Taiwan External Trade Development Council (TAITRA), C.K. Wang is ready to guide the officially-backed trade-promoting organization, amid a new era of global economic turbulence, realigning of world trade powers, financial market upheavals, new-found strengths and undeniable economic potential in emerging markets, and steadily shifting Cross-strait relations, to refocus its strategies.

"TAITRA is the government-mandated trade promoter whose mission is to help domestic manufacturers, suppliers explore overseas markets," Wang says. "Taiwan is a very small island without valuable natural resources whose livelihood since the 1960s has hinged on export. Earning the title 'Economic Miracle' for Taiwan over the past decades has been built on the collective effort of the island's exporters. Considering that, especially in the early years, many of Taiwan's manufacturers were relatively green in foreign trade experience and often inadequate in resources, TAITRA has been pivotal to help domestic manufacturers gradually take on bigger roles in the world market."

Back After 12 Years

Wang, interestingly, once chaired TAITRA shortly some 12 years ago, as well as serving as the Economics Minister before the Democratic Progressive Party (DPP) took over as the ruling administration about eight years ago. Wang left his official duties during DPP's eight-year rule to resume his professorship at the National Taiwan University, a top-ranked school in Taiwan.

The political tides have turned in Wang's favor, with Y.J. Ma's new presidency under the Kuomintang (KMT) Party, which took over on May 20, reappointing him to head TAITRA.

Placing Wang back at the helm of TAITRA suggests the man possesses considerable administrative background, as well as having the requisite skills to effectively and actively play the role of captain. "Today a significant part of TAITRA's core mission is to explore global emerging markets, particularly the one in China," Wang says. "China is becoming one of the world's most important markets for its steadily developing economy after being allowed to adopt market economics; while its world-leading population sets itself up as potentially the next motivator of the global economy, both of which are magnets for manufacturers worldwide."

In addition to maintaining strengths in major markets as the United States, Western Europe and Japan, Wang says that Taiwan should diversify by paying more attention to exploring markets in Russia, the Middle East, China, Eastern Europe and Southeast Asia.

Global Presence

Living up to its role of helping local manufacturers and suppliers to tap global markets, TAITRA has so far established 53 footholds worldwide, of which five are in China, including Beijing, Shanghai, Qingdao in Shangdong Province, Chengdu in Sichuan Province, and Xiamen in Fujian Province. Wang discloses that TAITRA has plans for more offices in China, with the targets being Dalian in Liaoning Province and Guangzhou and Dongguan in Guangdong Province.

Wang says that Taiwanese-run enterprises in China have recently been fighting uphill battles, with local rivals gradually learning the tricks of trade and the new labor laws adopted by the Chinese government that offer more labor rights, hence leaving manufacturers with less room to operate as freewheeling capitalists. As counter strategy, TAITRA believes it should help Taiwanese businessmen in China adopt branding, a not-so-new practice that has recently been popularized in the media, to further tap the huge local market.

Hands-on Approach

Believing in the hands-on approach, Wang visited China once in September and again in October, with the time spent negotiating with Chinese counterparts to devise ways to help Taiwanese businessmen in China survive, as well as discussing the possibility of future cooperation.

The new TAITRA chairman will show how he can cross from academia to real world-literally turning his teaching experience in business management and marketing into practical tools to steer the trade promoter towards even greater success. "An export-oriented economy, Taiwan has relied effectively on foreign trade as the locomotive of its amazing growth," Wang says. "Taiwan will continue to thrive, despite the global financial fallout and future uncertainties of global markets, as long as it retains strength as an exporter."

"Foreign trade is the lifeline of a country, which earns foreign exchange through exports, with the forex used to import capital equipment to enhance manufacturing capability and turn out more high-end products for export. Such trade activity is virtually the blood coursing in a body to continue life by circulating vital air and nutrition," Wang explains. "So, Taiwan should continue to pay close attention to promoting foreign trade, and try its best to sign free trade agreements with trade partners."

New Option

Wang also has a new option for the Taiwan export sector, suggesting, instead of exclusively shipping abroad mainly industrial products, the government should help local farmers to promote agro-export. "The mild climate in Taiwan is the perfect setting for growing various fruits, flowers, and vegetables, all of which may be shipped to China, Japan and Southeast Asia," Wang indicates. "For instance, Taiwan-grown bananas are quite popular in Japan, while Chinese consumers consider fruits from Taiwan precious and favorite gifts."

Seeing Taiwan's service industry showing excellent development in the past decade, Wang believes the sector can start to make inroads into overseas markets. "Last year the production value of the service industry accounted for 73% of Taiwan's GDP, with such rapid growth showing its importance in the island's economy. The quality of Taiwan's service industry is currently very competitive globally, so can tap global market niches," Wang says.

"Healthcare, among other services, in Taiwan is already at world standard, next only to that in Japan. There have been frequent reports of promoting 'medical tourism' in Taiwan, with certain S.E. Asian tour groups coming to the island for dialysis, as example; while dental care in Taiwan has long been very competitively priced against that in N. America. So, Taiwan is well positioned to offer healthcare in Asia, particularly in China where medical standards in many parts, especially in rural communities, are questionable and resources inadequate," Wang adds.