In response to mainland China's 31 incentive measures for attracting Taiwanese business and talent, the Executive Yuan today unveiled a comprehensive plan consisting of four major policy directions: attract and retain talent in Taiwan by building a quality education and work environment, maintain Taiwan's advantages in global supply chains, deepen capital markets and strengthen the cultural audiovisual industry.
The 31 measures, announced February 28, appear in name to benefit Taiwan but in actuality serve the interests of mainland China, Vice Premier Shih Jun-ji said. The policy is designed to recruit Taiwanese technology, capital and professionals for the purpose of helping mainland China resolve the difficulties encountered in the course of economic growth.
As mainland China attempts to lure away the brightest minds from each field, Taiwan must tackle the challenge head on without any hesitation, the vice premier said. The government will strengthen Taiwan on the foundations of freedom, democracy and rule of law, bolster its economic might, and transform Taiwan into a nation that draws the world's best talent.
The Executive Yuan's response plan also includes eight strategies:
1. Increase rewards for academic researchers, including by establishing 65 centers of excellence under the Ministry of Education's higher education development plan, steering Ph.D. degree holders into jobs in priority industries, and raising research stipends for principal investigators.
2. Promote innovative growth, including by earmarking NT$100 billion (US$3.4 billion) from the National Development Fund to create the Industrial Innovation and Transformation Fund. The Executive Yuan has also proposed a variety of avenues by which companies can list publicly, helping new startups that have yet to turn a profit gain access to capital markets.
3. Strengthen employee reward mechanisms, such as by easing restrictions on reward tools to help companies retain the skilled workers they need.
4. Provide a better environment for medical professionals, such as by examining manpower allocation for emergency and critical care departments, reviewing national health insurance payment standards, and promoting graded medical care systems. Laws will be drafted to require health care institutions to devote 5 percent of annual profits toward the improvement of salaries and benefits for health care professionals. The government will also formulate ways to prevent and handle medical malpractice cases.
5. Strengthen trade secret safeguards including by amending the Trade Secrets Act, investigating and prosecuting trade secrecy violations, and helping businesses set up control and protection mechanisms.
6. Push industrial innovation and upgrading, with the objective of maintaining Taiwan's strong advantages in global supply chains. This includes providing subsidies for businesses to acquire smart machinery facilities and software, using artificial intelligence to expedite the development of the "five plus two" innovative industries, and helping domestic industries form strategic alliances with global corporations.
7. Build momentum in the stock market and raise its profile internationally by, for example, improving the efficiency of initial public offering reviews and simplifying the review process. In addition, the Executive Yuan will promote more diversity in the securities markets by increasing avenues through which large, unprofitable firms can list, and establishing a dedicated single point of contact to guide companies seeking a listing. The government will also expand the scale of local capital markets by actively assisting Taiwan-listed enterprises to register their overseas subsidiaries in Taiwan.
8. Strengthen and develop the local multimedia sector, including by adding NT$6 billion (US$205.3 million) to the NT$4 billion (US$136.8 million) already invested by the National Development Fund into Taiwan's cultural content industry. A cultural industry financing system will also be established to draw in private-sector funds. The Executive Yuan will additionally set up a cultural content promotion institute to speed development of original cultural content and applied technology, and infuse the culture industry with interdisciplinary energy.
Relations between Taiwan and mainland China should be based on mutual reciprocity, said Vice Premier Shih, and cross-strait affairs must be governed by bilaterally negotiated procedures in order to secure the interests of people on both sides. The Mainland Affairs Council will therefore assemble a standing task force to research and follow up on Taiwan-related measures adopted by mainland China. This task force will provide regular reports to the people of Taiwan. In addition, mainland China must safeguard the investment rights of Taiwanese companies and nationals operating or living on the mainland, as well as protect their life, liberty, property and safety. At the same time, Taiwanese nationals traveling abroad should be aware of the uncertainties and risks associated with other nations' political systems and social environments.
Cross-border movement of talent and the global expansion of companies come as an inevitable consequence of competition, said the vice premier. This creates both disruptive shocks as well as appealing opportunities. The nation will make full use of every advantage and face the future with confidence. This is also a time for initiative and action. The people of Taiwan must come together, build up Taiwan and confront all challenges without fear.