2007/06/221 WORKSHOP ON CHINA, TAIWAN AND THE FUTURE OF THE DEVELOPING WORLD June 22-23, 2007 “ Is there role for Taiwanese firm in the China ’ s national standards strategy? Techno-nationalism VS Techno-globlism ” By Hwei-luan Poong Associate Research Fellow Institute of International Relations National Chengchi University

2007/06/222 Questions  To what extend does states across the Taiwan strait facilitate or obstruct cross-strait techno- globalism?  How would domestic politics shape cross-strait competition or cooperation?  To what extend does techno-globalism shape national or local high-tech policy?  Can standard setting strategy facilitate cross strait reconciliation?  What are the impact of political and economic factors on cross-strait joint effort in international standard setting.

2007/06/223 Power structure of IT standard setting Taiwan China US Core Technology & Global Market ChinaDomestic Market & Third World market TaiwanGlobal OEM/ODM Application & Marketing Comparative advantage

2007/06/224 Four preference for SS game  Techno-globalism  Global corporatism  Techno-nationalism  Neo-techno-nationalism

2007/06/225 Techno-globalism  State led liberal international economy  Internationalization of industrial activities due to technological needs Policy and Corporate strategies under free trade agreement Goals Trade FDI International licensing Cross-border alliances Increasing returns on R&D expenditure Sharing R&D costs

2007/06/226 Global corporatism  Private economic practice  seeking to perpetuate the interests of the largest western corporations through controlling path of technology development Microsoft, Intel …  Wintelism

2007/06/227 Global corporatism (market-led) Techno- globalism (state-led) Neo-techno- nationalism (market-led) (A 1,B 1 )(A 1,B 2 ) Techno- nationalism (state-led) (A 2,B 1 )(A 2,B 2 ) Standard setting (SS) game of competition and cooperation Leading State B following State A

2007/06/228 Techno-nationalism  Driven by political or ideological concern for maintaining domestic technological competitiveness Government policiesgoal R&D subsidies, Non-tariff barriers, Trade-related investment measures, antidumping measures, export financing National security & technological competitiveness

2007/06/229 Neo-techno-nationalism  Driven by commercial interest to enhance national S&T capabilities  To improve the national position in international division of labor* Government policiesgoal Coordination, capital support and collective bargaining with the MNCs National security & technological competitiveness

2007/06/2210 Global corporatism (market-led) Techno- globalism (state-led) Neo-techno- nationalism (market-led) (4, 4)(3, 3) Techno-nationalism (state-led) (2, 1)(1, 2) SS game between US & China US China

2007/06/2211 SS game between China & Taiwan China Taiwan Global corporatism (market-led) Techno- globalism (state-led) Neo-techno- nationalism (market-led) (3, 3)(2, 4) Techno-nationalism (state-led) (4, 2)(1, 1)

2007/06/2212 SS game between US & Taiwan US Taiwan Global corporatism (market-led) Techno- globalism (state-led) Neo-techno- nationalism (market-led) (3, 3)(1, 4) Techno-nationalism (state-led) (4, 2)(2, 1)

2007/06/2213 SS competition between China and US  Dancing with dragon? – North competition for market with high-end technology sharing with China Siemens Alcatel Erickson Nokia  Techno-globalism of China in South Techno-globalism in South-south trade Economic aid with business  Structuralist approach were applied for enhancing competitive technology usually led to international retaliation and pressure for trade talk

2007/06/2214 SS interdependence in standard development across strait  Chinese market and state led national standard setting strategy  Comparative advantage of Taiwanese IT firms Global Logistic Management Model Global OEM/ODM Application

2007/06/2215 Major actors of SS regime for cross – strait standard development  KMT led Sinocon Foundation( 華聚產 業共同標準推動基金 會 )  Individual Taiwanese firms investing in China  Chinese Ministry of Information Industry  China Electronics Standardization Institute (MII)  China Telecom Standardization Institute  State-owned enterprises

2007/06/2216 Taiwan ’ s choice  DPP Go for American standard Restriction on asymmetric dependency State-owned enterprise side with US position Allies with China ’ s competitors, i.e. India  KMT Go for Chinese standard Close interaction with MII and public institution Private enterprises actively involved in Chinese SS Strategy Quick follower of Chinese standard

2007/06/2217 China ’ s choice  State-led favoritism toward Taiwanese firms Information sharing Early stage of standard application Domestic and Third world market sharing  Private-led consortium To lure MNCs to work with Chinese standard Marginal role for Taiwanese firms in SS stage

2007/06/2218 Conclusion  Chinese government has been actively promoting Chinese standard in developing countries during state visit  Timing for cross strait cooperation in SS strategy is fading away  Techno-nationalism led by DPP government would obstruct global logistic management of Taiwanese firm  Techno-globalism (appeasing policy) led by KMT might deepen asymmetric dependency  The role for Taiwanese firm in China ’ s SS strategy would base on neo-techno-nationalism from both sides of the strait