1/17

No. 2 / August, 2012

Joint Business Councils Meetings

The 22nd Joint Meeting of the

Chinese-Philippine Business

Council (CPBC) and the

Philippine-Chinese Business

Council (PCBC) was held on

August 16, 2012 at the Grand

Formosa Regent Hotel in Taipei,

Taiwan in conjunction with the

18th Ministerial Joint Economic

Cooperation Meeting. The

Philippine delegation was led by

Atty. Miguel B. Varela, President

of PCCI and Mr. George T. Siy,

Chairman of the

Philippine-Chinese Business

Council. The Taiwan delegation

was headed by Mr. Clement Yang,

Chairman of the

Chinese-Philippine Business

Council. About 140 participants

from both sides attended the joint

meeting. Minister of Economic

Affairs Yen Shiang Shih and

Secretary of Department of Trade

and Industry Gregory L. Domingo

were invited to make keynote

speeches.

Index

Joint Business Councils Meetings

The 22nd

Joint Meeting of Chinese-Philippine & Philippine-Chinese Joint

Business Councils Meeting ……... P.2

The 23rd

Taiwan-Thailand Joint Business Councils Meeting …P.3

The 1st Taiwan-Cambodia Joint Business Councils Meeting ……... P.4

Guests From Abroad

Burkina Faso Guest …………………….………...………...…….…P.6

Mexican Guest …………………….………...………...…….…P.7

Peruvian Guest …………………….………...………...…….…P.8

England Guest …………………….………...………...…….… P.8

Economic News …………………….………...………...…….… P.9

Activity Reports …………………….………...………...…….…P.15

Activity Report …………………….………...………...…….…P.14

The 22nd

Joint Meeting of

Chinese-Philippine &

Philippine-Chinese Business

Councils

Chinese-Philippine &

Philippine-Chinese Business

Councils

CIECA News Letter

2/17

The plenary session provided

the delegates a forum to discuss

possible areas for cooperation.

Among the speakers were Ms.

Kristy Hsu, Program Coordinator,

Taiwan ASEAN Studies Center,

Chung-Hua Institution for

Economic Research; Hon. Merly

Cruz, Undersecretary for Regional

Operations and Development

Group, Department of Trade and

Industry; Dr. Su San Chang,

Director General, Department of

International Affairs, Council of

Agriculture, Executive Yuan; Mr.

Deogracias G.P. Custodio,

Chairman and Administrator,

Authority of the Freeport of

Bataan; Mr. Steven Chen,

Director, International Healthcare

Center, Taipei Medical University

Hospital; Dr. Yun-Chang Fu,

Assistant General Manager, WRC

Pacific, Ltd. The topics

discussed included “Economic

Cooperation between Taiwan and

Philippines”, “Agriculture and

Food”, “Investing in Bataan

Freeport Zone”, “Medical

Tourism” and “Environment and

Waste Management”.

Both business councils

expressed their great appreciation

for the support and encouragement

given by the Taiwan and

Philippine governments. They

reiterate the strong belief that

concerted efforts between the two

governments and business

communities will work most

effectively and contribute greatly

to the further expansion of

economic and trade relations

between the Taiwan and the

Philippines.

Philippine Delegates were

arranged to industrial tour on

August 17. They paid a visit to

Taipei Medical University

Hospital, Speedtech Energy Co.

Ltd., Hsinchu Science Park, and

Information Technology Research

Institute (ITRI).

3/17

“Unbeatable Thailand,

Unparalleled Opportunities

Seminar & the 23rd Joint

Economic Cooperation Meeting

between CIECA and FTI” was

held on August 20 at Joyful

Ballroom of the Sheraton Taipei

Hotel, with the total number of

140 participants from Taiwan and

Thailand.

The meeting was co-chaired

by both Mr. Alfred F. L. Chen,

Chairman, Thailand Committee of

CIECA, and Mr. Mangkorn

Dhanasarnsilp, Vice Chairman of

FTI. Mr. Shih-Chao Cho, Vice

Minister of Ministry of Economic

Affairs, Mr. Kriangsak

Kittichaisaree, Executive Director

of Thailand Trade and Economic

Office, and Dr. Atchaka

Sibunruang, Secretary General of

Thailand Board of Investment,

were invited to make an address at

the opening ceremony. At the

plenary presentation, Mr. Chin-Teh

Chang, Chairman of Taiwan

Turnkey Project Association, and

Mr. Victor Jien, Chairman of Thai

Taiwan Economic Cooperation

Committee, were invited to make

the keynote speech on “Industrial

Automation”, while Ms. Hsiu-Min

Kuo, Vice President of

Thai-Taiwan Business Association,

was invited to make the keynote

speech on “Investment

Experiences Sharing.”

Unbeatable Thailand, Unparalleled

Opportunities Seminar & the 23rd Joint

Economic Cooperation Meeting between CIECA

and FTI

Mr. Alfred F. L. Chen, Chairman, Thailand

Committee of CIECA, exchanged the gifts with

Dr. Atchaka Sibunruang, Secretary General of BOI

Mr. Alfred F. L. Chen, Chairman, Thailand

The 23rd

Taiwan-Thailand Joint Business Councils Meeting

4/17

Committee of CIECA, exchanged the gifts with

Mr. Mangkorn Dhanasarnsilp, Vice Chairman of

FTI

Unbeatable Thailand, Unparalleled

Opportunities Seminar & the 23rd Joint

Economic Cooperation Meeting between CIECA

and FTI

Farewell Dinner of the 23rd Joint Economic

Cooperation Meeting between CIECA and FTI

Farewell Dinner of the 23rd Joint Economic

Cooperation Meeting between CIECA and FTI

Farewell Dinner of the 23rd Joint Economic

Cooperation Meeting between CIECA and FTI

Farewell Dinner of the 23rd Joint Economic

Cooperation Meeting between CIECA and FTI

To promote the bilateral trade

relationship between Cambodia

and Taiwan, Chinese International

Economic Cooperation

Association (CIECA) and

Cambodia Chamber of

Commerce(CCC) jointly held the

1st Joint Meeting between CIECA

and CCC in Phnom Penh on

August 31, 2012. The meeting was

co-chaired by Mr. Clement Yang,

Chairman of Cambodia

The 1st Taiwan-Cambodia Joint

Business Councils Meeting

5/17

Committee, CIECA and Mr. Neak

Oknha Kith Meng, President of

CCC. Approximately 77 people

from both sides participated in the

conference.

Both Mr. Neak Oknha Kith

Meng and Mr. Clement Yang gave

some remarks at the meeting.

Delegates from both countries

discussed issues of mutual

concerns, including visa issuance,

trade facilitation and investment

promotion.

The 1st Joint Economic Cooperation

Conference—from left Mrs. Oknha Chan Sothea,

Vice President, Phnom Penh Chamber of

Commerce 、 Mr. Neak Oknha Kith Meng,

President, Cambodia Chamber of Commerce、

Mr. Oknha Nang Sothy, Secretary of the

Executive Board, Cambodia Chamber of

Commerce

The 1st Joint Economic Cooperation

Conference—from left Mr. Hsien-Chao Tseng,

Director, Taipei Economic and Cultural Office in

Ho Chi Minh City、Mr. Yi-Cheh Chiu, Advisor ,

Taiwan External Trade Development Council、

Mr. Clement Yang, Chairman, Cambodia

Committee, CIECA、Mr. Jerry S. K. Yang,

Advisor, CIECA、Mr. Wen-Yan Chen, Advisor,

CIECA

Courtesy Call on Mr. Chea Vuthy, Deputy

Secretary General, Cambodian Investment Board,

Council for the Development of Cambodia

Courtesy Call on Canadia Integrated

Enterprise Group—from left Mr. Clement Yang,

Chairman, Cambodia Committee, CIECA、Mr.

Yi-Cheh Chiu, Advisor , Taiwan External Trade

Development Council 、 Mr. Pung Kheav

Se,Chiarman, Canadia Integrated Enterprise

Group、Mr. Jerry S. K. Yang, Advisor, CIECA、

Mr. Hsien-Chao Tseng, Director, Taipei

Economic and Cultural Office in Ho Chi Minh

City

6/17

Celebration of the Birthday of Mr.

Yi-Cheh Chiu, Advisor , Taiwan External Trade

Development Council during Dinner hosted by

Mr. Clement Yang, Chairman, Cambodia

Committee, CIECA

Visit Manhattan Special Economic Zone in

Svay Rieng, Cambodia

The ferry on Mekong River

Street View in Phnom Penh

-------------------------------------------------

Guests From Abroad

H. E. Ambassador Jacques Y.

Sawadogo and Mr. Daouda Bitie,

Deuième Conseiller of Embassy of

Burkina Faso, called on Mr. C. Y.

Wang, Chairman of CIECA on

August 20, 2012, to promote the

International Arts and Handicrafts

Trade Show, which will be held at

Ouagadougou, Burkina Faso from

October 26 to November 4, 2012.

Mr. Eden Chou, Chairman of

Guest

Burkina Faso Guest

7/17

Taiwan-Africa Business

Association called on Mr. Leon

Chuan Lian Lee, Secretary

General of CIECA on August 27,

2012. Among issues of mutual

concerns, they talked about the

possibility of jointly organizing

trade and investment delegations

to visit Africa in the future.

Mr. Cesar Fragozo, Trade

Commissioner of Mexican Trade

Services called on Mr. Leon C.L.

Lee, Secretary General of CIECA

on August 9th

to exchange views

on promoting the economic

cooperation between Taiwan and

Mexico. Mr. Lee requested Mr.

Fragozo to help promote the

signing of Investment Protection

Agreement and Avoidance of

Double Taxation Agreement,

which would strength the

confidence of Taiwanese

companies to invest in Mexico.

Given the close economic ties and

cultural affinity between Taiwan

and China, Mexican companies

should consider to utilize Taiwan

as a gateway to explore the

potential market of China.

Mr. Gycs M. Gordon, Director of

Commercial Office of Peru in

Taipei called on Mr. Leon C.L.

Lee, Secretary General of CIECA

on August 14th

to exchange views

on promoting economic

cooperation between Taiwan and

Peru. Mr. Lee thanked Mr. Gordon

for his efforts in promoting mutual

understanding and cooperation

between the two business

communities. Peru’s high

economical growth rate in recent

years has attracted the attention of

Mexican Guest Peruvian Guest

8/17

the world including Taiwan. Mr.

Lee requested Mr. Gordon to help

facilitate the signing of Investment

Protection Agreement and

Avoidance of Double Taxation

Agreement, which would strength

the confidence of Taiwanese

companies to invest in Peru.

Further, both sides explored

the possibilities of joint actions to

promote the Pacific Alliance,

which was signed on June 6, this

year in Chile by Presidents of

Chile, Peru, Colombia and Mexico,

for the purposes of trade and

economic integrations, with clear

orientation toward Asia.

Mr. Leon C. L. Lee, Secretary

General of the CIECA visited Mr.

BBVA Taipei Branch. As both

CIECA and BBVA are frequently

engaging in various business

promotion activities of their own

between Taiwan and Latin

America, it is of mutual interests

to integrate resources and efforts

into joint projects, such as

co-sponsoring investment

seminars, investment and financial

services to Taiwan investors in the

Pacific Alliance, exchange

information of infrastructure

project bidding business, etc.

Both sides agreed to keep close

contact for purpose of developing

joint projects, especially between

Taiwan and the Pacific Alliance.

Mr. Stephen Metti, Head of

Trade and Investment, British

Trade & Cultural Office and his

successor, Mr. David Brown,

visited Mr. Leon C. L. Lee,

Secretary General of the CIECA

on Aug 29, 2012

England Guest

Call on Spanish Bank BBVA

9/17

Mr. Leon C. L. Lee, Secretary

General of the CIECA visited Ms.

Caroline Vermeulen, Director of

the Belgian Office, Taipei on Aug

28, 2012

Mr. Leon C. L. Lee, Secretary General of the

CIECA met Dr. Walter Höfle,

Director of Austrian Commercial

Office on Sept. 7, 2012

-------------------------------------------------

Economic News

The Eighth Chiang-Chen

Talks was officially held on

August 9, 2012 at the Grand Hotel

in Taipei. During the talks, Straits

Exchange Foundation (SEF)

Chairman Chiang Pin-kung and

Association for Relations Across

the Taiwan Straits (ARATS)

Chairman Chen Yunlin jointly

confirmed the texts of the

"Cross-Strait Investment

Protection and Promotion

Agreement" and the "Cross-Strait

Customs Cooperation Agreement."

The two sides also jointly

announced a "Consensus on the

Protection of Personal Freedom

and Safety" in regards to the

Investment Protection Agreement.

The two agreements were signed

the same afternoon.

In the opening remarks at the

Talks, Chairman Chiang stated

that more than four years ago, the

two sides of the Taiwan Strait

resumed the institutionalized

negotiation channel between the

SEF and the ARATS on the

premise of "shelving controversies

and jointly creating a win-win

outcome." Since then, the two

sides have actively held

consultations on various issues

Call on Belgium Representative

Call on Austrian Representative

Eighth Chiang-Chen Talks

were Successfully Held

10/17

related to cross-strait exchanges

and signed 16 agreements. These

agreements are important

yardsticks in terms of

institutionalizing cross-strait

economic and trade relations,

maintaining the order of

exchanges on various levels,

protecting the rights and

well-being of the people, creating

a new era of reciprocity and

mutual benefit, and achieving the

peaceful, stable and prosperous

development of cross-strait

relations.

Regarding recent

developments in cross-strait

consultations on economic and

trade issues, Chairman Chiang

emphasized that, in the two years

since the Economic Cooperation

Framework Agreement (ECFA)

was signed, the two sides had

made considerable progress

through active discussions and

communication on related issues.

However, for cross-strait

economic and trade relations to be

mutually beneficial, they should

embody respect for the objective

differences between the two sides

in regards to their respective

systems, levels of industrial

development, and overall

economic scales. Furthermore,

they should contribute actively and

positively to the individual and

joint participation of the two sides

in regional economic integration.

This is the key to the benign

long-term development of

cross-strait economic and trade

relations and cross-strait relations

overall.

Chairman Chiang stressed that

the most important duty of the

SEF and the ARATS was to

safeguard the interests and

well-being of the people on both

sides. In the process of cross-strait

exchanges and interactions, the

two sides may have different

views on the focus and priority in

handling affairs due to differences

between their legal systems and

social climates. However, as long

as the two sides start from a basic

understanding of protecting the

rights and interests of the people

and adhere to the principle of

mutual respect, they will certainly

be able to narrow differences,

11/17

resolve disputes, and then

pragmatically develop a stable

mechanism for forging consensus.

It was hoped that, on the existing

foundation and true to the spirit of

"shelving controversies,

progressing in an orderly manner,

pragmatically negotiating, and

pursuing a win-win outcome," the

SEF and the ARATS could jointly

consider the promotion of concrete

plans for follow-up talks related to

safeguarding the rights and

interests of the people and

maintaining orderly cross-strait

exchanges and interactions, as

well as work together to usher in a

bright future of sustainable peace

across the Taiwan Strait.

The SEF stated that the

"Cross-Strait Investment

Protection and Promotion

Agreement" signed during the

Talks would help provide

institutionalized protections for the

investment rights and interests of

investors on both sides, including

the property rights, management

rights and personal safety of

Taiwanese businesspeople. This

will have positive benefits for

investments in all industries,

effectively strengthening the

cross-strait investment

environment and improving the

competitiveness of both sides with

respect to global and regional

economic cooperation. As for the

"Cross-Strait Customs

Cooperation Agreement," it will

help streamline cross-strait cargo

clearance procedures, reduce the

cost of doing business, and stamp

out cross-strait smuggling. The

signing of these two agreements

also marked the progressive

realization of ECFA follow-up

negotiations and the further

deepening of the framework for

cross-strait economic and trade

cooperation.

The SEF and the ARATS also

reached a consensus on the issue

of protecting personal freedom and

security in relation to the

Investment Protection Agreement.

According to their respective

regulations, the two sides will

provide notification within 24

hours of limiting the personal

freedom of an investor or related

personnel and make

12/17

accommodations for visits by

family members and attorneys.

The Consensus demonstrates the

importance that both sides attach

to the issue of personal safety. The

improved reporting and

notification mechanisms will

further strengthen protections for

the personal freedom and safety of

investors and related personnel on

both sides.

During the Talks, the two

sides described and discussed the

results from implementing the

agreements previously signed

between the SEF and the ARATS,

including the phased achievements

of the ECFA and the pacts on

tourism, air transport, sea transport,

joint crime-fighting and judicial

mutual assistance, food safety,

medicine and health. In addition,

the Taiwan side reiterated views

and deep concerns of the people in

Taiwan regarding repatriation of

major economic criminals and

compensation in major food safety

cases, such as the melamine

incident. The Taiwan side also

expressed hope that more active

improvements could be made in

related matters in order to

implement the agreements and

protect the life, safety and property

of the people on both sides.

Concerning negotiation issues

for the next round of SEF-ARATS

talks, the two sides agreed to focus

on the ECFA follow-up issues of

trade in services, trade in goods,

and dispute settlement, and to sign

agreements on any issues of

consensus. Both sides also agreed

to prioritize the signing of an

agreement on trade in services in

follow-up talks. They further

agreed to actively promote

communication and discussions

between the relevant authorities on

"cross-strait cooperation on air

quality monitoring" and

"cross-strait cooperation on

earthquake monitoring"—issues of

concern to the livelihood and

well-being of the people.

During the Talks, both sides

also exchanged views on the

establishment of reciprocal offices

between the SEF and the ARATS.

They agreed to separately carry

out planning, evaluation and

research and exchange views at an

13/17

appropriate time.

The SEF and the ARATS also

exchanged views on routine

operational business between the

two organizations. The two sides

will strengthen exchange visits and

activities in cultural, creative, and

educational fields. They will also

continue to promote two-way

interactions and cooperation in

areas of their respective expertise

in order to build deeper mutual

knowledge and understanding.

The SEF stated that success of

the Talks and signing of the two

ECFA follow-up agreements

signified the stable and orderly

operation of institutionalized

cross-strait negotiations. The

steady expansion of ECFA

achievements also has important

meaning for "long-term

advancement on a firm footing and

the creation of a new era."

Chairman Chiang thanked the

negotiation teams and staff

members of the two sides for their

hard work to make the Eighth

Chiang-Chen Talks a success.

(August 10).

(Source: Mainland Affair Council

website)

Taiwan posted an increase of more

than 10 percent in car sales for

August from a year earlier on the

back of car vendors' intensive

promotion campaigns during the

month, according to the statistics

released by the Ministry of

Transportation and

Communications Tuesday.

Last month, Taiwan sold a total of

25,800 cars, up 11.6 percent from

a year earlier. In the first eight

months of this year, car sales on

the island rose 0.6 percent from a

year ago to 252,600 units, the

statistics showed.

However, the August car sales fell

30 percent from July as the market

felt the pinch of the impact from

faded buying during Ghost Month,

the statistics indicated.

Local consumers tend not to buy

big-ticket items like cars or homes

during Ghost Month, which runs

Aug. 17-Sept. 15 this year based

August car sales in Taiwan see

annual rise of over 10 percent

14/17

on the Chinese lunar calendar, to

avoid bad luck, preferring to make

purchases before or after that

period.

In August, Hotai Motor, a local

agent for Japan's Toyota Motor

Corp., retained the title as the

largest car vendor in Taiwan by

grasping a 34.1 percent share of

the local car market after selling

8,804 units, which rose 23.2

percent from a year earlier, the

statistics showed.

China Motor Corp. came in second

with an 11.2 percent market share

by selling 2,900 cars, a 6.1 percent

rise from a year earlier, ahead of

Yulon Nissan Motor Co., which

took a 10.9 percent share after

selling 2,814 cars, up 8.9 percent

year-on-year.

Honda Taiwan, a subsidiary of

Japan-based Honda Motor Co.,

sold 1,465 cars during the same

period, down 6.5 percent from a

year earlier, and took a 5.7 percent

share of the local car market as the

fourth largest car vendor.

Sanyang Industry Co., which

assembles cars for South Korea's

Hyundai Motor Co. in Taiwan,

sold 1,297 cars in August, and

took a 5 percent market share to

become the fifth largest vendor.

Last month, Sanyang's car sales

rose 40.5 percent from a year

earlier on the back of rising

popularity of Hyundai's Elantra

passenge

Taiwan's consumer price index

rose 3.42 percent in August from a

year earlier, reflecting steep

increases in the prices of fruit and

vegetables, the government

reported Wednesday.

The Directorate General of Budget,

Accounting and Statistics

(DGBAS) said that torrential rains

brought by successive typhoons

led to a 57.93 percent surge in

vegetable prices and a 20.14

percent rise in fruit prices from

August 2011.

Inflation hits 3.42% in August

on high produce prices

15/17

Increases in fuel and egg prices,

electricity rates, group tour costs,

and the cost of eating out also

contributed to the sharp rise in

inflation.

Falling prices for 3C consumer

products and meat, and relatively

lower telecommunication fees,

however, offset some of the

increases, the DGBAS said.

Inflation over the first eight

months of the year was 1.84

percent, with core inflation (which

excludes energy and fresh produce

prices) at 0.89 percent, the

DGBAS said.

(A) Exports

Taiwan’s exports reached US$

24.69 billion in August, down

0.6% from the previous month,

and down 4.2% when compared

with the same month last year.

Cumulative exports from

January-August totaled US$

1,963.4 billion, showing a decline

of 5.6% from the same period last

year.

(B) Imports

Taiwan’s imports reached US$

21.38 billion in August, down

10.7% from the previous month,

and down 7.6% when compared

with the same month last year.

Cumulative imports from

January-August, totaled US$

180.91 billion, registering a

reduction of 5.7% from the same

period last year.

(C) Trade surplus

The trade surplus in August was

US$ 3.31 billion, an increase of

US$ 670 million or 25.2% over

the same month last year.

Accumulated trade surplus from

January-August amounted to US$

15.43 billion, indicating a decrease

of $ 720 million or 4.4% when

compared with the same period

last year.

Economic Index

%Change on

previous

year

201

1

2012

May

.

June July Jan.-Ju

ly

Summary of Exports and

Imports for

August 2012

16/17

GDP 4.03 - -- -- --

CPI 1.42 1.74 1.77 2.46 1.61

Unemploym

ent rate 4.39 4.12 4.21 -- 4.17

Export 12.3 -6.3 -3.2 -11.

6

-5.8

Imports 12.1 -10.

5

-8.4 -3.2 -5.4

Export

orders

7.2 -3.0 -2.6

Industrial

production 4.6 -0.2 -2.4 -- --

Monetary

aggregate(M

2)

5.8 4.4 4.2 -- --

Stock

Market*

8,15

5

7,35

7

7,14

3

7,18

7

-17.21

-------------------------------------------------

Activity Reports

CIECA sent a staff member to

participate in the International

Youth Educational Forum

“SeliSakh 2012 – The new

Economy and Youth Initiatives”

organized by the Federal Agency

for Youth Affairs, Ministry of

Sport, Tourism and Youth Policy

of the Russian Federation. The

event started from August 24 to 28,

aiming to provide an opportunity

for youth elites to establish a

platform for exchanging

information and sharing

experiences in the field of

innovation, thereby helping the

participants to understand the

current economic, social and

cultural development of the Far

East Part of Russia. Through close

contact and personal interaction,

communications channels were

established between local and

foreign participants for promoting

the exchanges of international

youth affairs in the future.

Taiwan delegation consisted of 7

representatives from Ministry of

Foreign Affairs, Russian Language

and Literature of Chinese Culture

University, Taiwan Russia

Association, Taiwan Institute of

Economic Research, Department

of Diplomacy of National

International Youth Educational

Forum “SeliSakh 2012 – The new

economy and youth initiatives

Taiwan Delegation with international delegations

17/17

Chengchi University, Department

of Slavic Languages and

Literatures of National Chengchi

University, and Chinese Economic

International Cooperation

Association. Foreign participants

consisted of representatives from

Japan, India and Afghanistan. A

total of around 200 young elites

attended this event, including

representatives from different

states of Russia.

The itinerary is designed to enable

participants to attend the

International Youth Educational

Forum and to gain a better

understanding of Sakhalin, from

natural landscape to cultural

heritage. Fishery farm, beach,

aerial tramway, Sakhalin Regional

Museum and seafood market were

among the places of interest

visited by the participants.

August 1, Swiss National Day,

August 9, Singapore National Day,

August 17, Indonesia National

Day, August 20, Hungary National

Day, and August 24, Ukraine

National Day . CIECA had already

sent the congratulatory message to

its counterparts.

Closing ceremony.

Views of the sea

National Day in August

All participants of the International Youth

Educational Forum

Sakhalin Regional Museum