February '99 News and Perspectives about Business Opportunities in Asia

1) Taiwan has completed yet another joint venture in the USA - a seafood processing factory in Alaska that isa jont project with an Alaskan seafood center and the state government. Total capital amounts to $110 million. The state government takes a 5% capital stake, while the Alaskan party and Taiwan party subscribe 47.5% each. The factory is scheduled to start operations in coming June.

2) The People's Republic of China (PRC) is often thought of as an investment sink. Yet, the PRC has, according to the trade authorities, 5600+ enterprises overseas. Total investment is about $9 billion, with PRC's share at $6.33 billion. They are scattered in Asia, Africa. Latin America, former USSR, and eastern Europe.

February 27, 1999

With 200 million unemployed, possibly the highest number in the world, and an
umemployment rate at 20-30%, the PRC has been thinking aloud on "4 CREATIONS", namely:

a) Create land through reclaimation, increase of unit agricultural and industrial yield.

b) Create qualified workers: more schools, on a joint venture basis, with foreign countries.

c) Create new housing, villages, and cities.

d) Create roads and infrastructure.

If these measures work, they would help create an astronomical number of jobs.

In theory, it looks good but where will the capital or essential technology come from? One could hope for a modern ROOSEVELT for PRC, or more practically, to develop win-win joint ventures with PRC. We have the expertise to help and to find a niche for you in the PRC market

February 21, 1999

The trade balance between USA and the People's Republic of China (PRC) has always in favor of the latter. The amount involves billions of US$ annually. While the PRC has been trying to maintain a closed market for certain USA commodities or produce, it has also recently announced added efforts for increased exporting using, essentially, THOUSANDS OF 'TRICKS'.

Faced with such heavy pressure, the US authorities of course, have also tried all possible measures to enter the PRC market. Despite these efforts, the Department of Commerce has divulged that the PRC not only wishes to woo USA investment in PRC market, but at the same time, strongly pressures the investors to transfer the essential technology to the PRC entrepreneurs. If this condition is not met, then there will be no PRC market; if met, then the production in the PRC will eventually reduce the competitiveness of US manufacturers. It is a real dilemma for the US.

However, we can suggest several approaches that could neutralize this no-win situation, resulting in a win-win solution for you. Interested? Contact us.

February 15, 1999

Being one of the wealthiest Asians and founder of the FORMOSAN PLASTICS GROUP, Mr Yung Chin WANG is also a reputable GURU of TAIWAN ENTERPRISES MANAGEMENT.

According to Mr Wang's experience, or perhaps the experiences of his ancestors, if a goose is fed regularly, it would grow to a maximum of 3.6 kilos; if it were starved first and then be fed regularly, it would grow to 4.2 kilos.

What he wishes to to tell us is : If we start to run an industry or business, be prepared to starve (be frugal, be diligent, and be ready to struggle), then, there would be chances of even greater success.

The identical philosophy can also be used in the training successsors - let them sample the hardships first and enjoy the fruits later.

So, when you are about to enter an enterprise, think over this Chinese insight.

Happy Chinese New Year--the Year of the Rabbit.

February 7, 1999

Under heavy pressure from Beijing, Taiwan is definitely out as a signatory of the CWC (Chemical weapons convention).

The control of chemical weapon conventions has three annexed tables listing various chemicals, according to their relative lethality.

Table I - chemical weapons - nothing to do with Taiwan
Table II - controled chemicals closely related to the manufacture of chemical weapons - It will be effective three years after the convention signing in 1997. That is to say effective on April 29, 2000, after which, signatory nations will not be allowed to sell Table II chemicals to Taiwan.

However, the Table II itemized materials that will be prohibited to be exported to Taiwan are currently widely used as plasticizing agents, solvents, coatings, detergents, anti-rusting, fire-retardant, rubber-sulfate agents, dystuffs, and normal agricultural usages.

To overcome this problem, Taiwan has to become a producer of the same chemicals. In order to facilitate this, both USA and Japanese governments have agreed to transfer the related technology to Taiwan. This represents an immediate business opportunity, where both both timing and the market coincide.

If you are interested in participating in the export of appropriate materiale to Taiwan, please contact us.

Silver Ring Across the Dark Pacific Rim Sky

February 1, 1999

Since the advent of the 1997 financial crisis, first in Thailand and then followed by Indonesia, Republic of Korea (ROK), Malaysia, and Hongkong, the people of this region have experienced unprecedented hardships and social disturbances.

Because of both the timely rescue by the IMF (despite what some critics say) and self-adjustment of their own economic systems, the worst period is over. What are the signs of recovery?

ROK exports have increased; Hongkong realty business and stock market regained their strengths; Malaysia's currency is becoming stronger, and investors are even starting to go back to Thailand.

In brief, investment of funds, on an invidual country basis, grew last quarter by the following amounts: 23% in Hongkong, 33% in Singapore, 21% in Thailand and 75% in ROK. These are very healthy numbers that auger well for the future.

But does the wise investor wait for or anticipate the future?

NEWS REPORT

PRC'S MARSHALL PLAN

THE ROAD FROM DC TO BEIJING IS NOT A STRAIGHT ONE

STARVED GEESE GROW FATTER

Silver Ring Across the Dark Pacific Rim Sky