經濟,財務,統計學,數理科學與政治評論

Dear American people:

  For me, it is the first time I have not written the same issue in the traditinal Chinese on the blog talking about the new issue I concern about the mainland China in the first place, the Red China we name it.

  First of all, we treat Red China as a threat and also as a salvation. Red China has a lot of manufacture companies who use the lower-than-others-pricing strategy to take a larger share of market, especially in Red China and the world for some items. We all know that Red China has more than 1.2 billion people living in the ghost-like place. I do respect those people in China who can endure such a dangerous living environment and try to survive on their own. China has seriuos air pollution and wasteful mass production which produce lower quality and lower priced productions. Now we see they try hard to improve themselves with new technology and new way of production, but we all know those technologies and manpowers are largerly getting from Taiwan. They steal our human resources trained and educated in Taiwan. Our government pays a big fortune for those manpowers when those people pay so little to have a great public university education and pay so little to have great healthcare in Taiwan. All those costs are brudened by Taiwanese people in our tiny island. We take those burdens to train those manpowers in a sophosticated way. BUT we can not let them have a decent life in Taiwan. So we have to let them go to Red China. There are so many issues troubling us lately. The one is China becomes a big threat to the whole world because they do not need to take any burden to produce excellent products and all those costs are at other's expense. The land belongs to the state in Red China. The production costs are almost free because those money, RMB of course, are printed from the government for nothing. There are a lot of companies in their greatest competitive position with our Taiwanese corporations. Those Red China corporations are paying almost nothing to have those production resources. Even the technology those Red Chinese corporations get is free because they steal those things from the world and only sell those products in Red China to avoid the lawsuit. People all around the world will NEVER get court restriction approved to forbid those products selling in Red China. You will even be limited to talk about those technologies stealing events in Red China. The reason is simple. Those Red China corporations are supported and funded by local state Red Chinese governments which are the main shareholders. The product price just can be that CHEAP behind everybody's imagination.

  There is a joke that we often hear lately. Thare are so many Red China corporations losing a lot of money. But at the end of each accounting period, they get new funds by selling something not so valuable to somebody in Red China and their books turn black. We all know those companies are supported from the local state government who is the main funder. All of sudden in many cases, the near bankrupt corporation's balance sheet turns black from red. There are so many examples. Originally, they lost almost 1 billion. After the specific transaction they are invloved, they earn more than 3 billion in ONE DAY. So their public listed stocks go up and up to the outer space. It is nothing but a truth we saw those things happening in so many years. This non-fair competition drives our Taiwanese corporations out of Red China and the world. We do know Red China has the pressure of crowded population. We do know they have to survive on whatever cost they bring to each other. But this situation makes us wonder even if we have free trade agreement with Red China. Even we have tax deduction from the specific Free Trade agreement with Red China. They still can drive our Taiwanese corporations out of markets in Red China because we have to pay the production costs of land, hirings and other resources for production. But they pay almost nothing. We do know their financial statements can be manipulated in every means because they have local or even central government support who can turn their losing book into black without any reason.

  Second, there is also another big issue troubling people seriously these days, the RMB issue. We all know a lot of Red China corporations have unimaginable debt-to-equity ratios in their financial statement. We all know that the high-speed railroad system in China has sky-high debts on hand. But we are one hundred percent sure those corporations will not go bankrupt because the central or local governments can support them indefinitely and make them profitable somehow. For Red China corporations, their RMB seems to be free and without any costs to obtain. The Red China government restricts the credit creation on the housing sector, but, on the other hand, they support those near bankrupt corporations to have a profitable look in front of people. Those corporations are public listed but their books can be manipulated without any rules following. It makes people wonder the value of RMB. How come those people can get those RMB without any cost? What is the value behind of RMB? What is the credit creation process we had witnessed these days in Red China? We all know that the Treasury department of USA has to issue US Treasuries to let Fed print the greenback accordingly. It is the reason why the USA has more than 16 trillions national debt lately. Every penny US currency circulated in the world has to be backed by the US Treasuries. But it seems to be not that way in Red China. We really do not know how those credits created in Red China. In Taiwan, we use foreign reserve as our currency backup. People are wondering what the ground of those RMB is based. The central government of Red China seems to create those credit lines for some corporations without limit. They print the money to support their employment but let our corporations and our manpower to earn nothing if the RMB can depreciate as Red China governement wishes. They can print a lot of money or create a lot of credits as they want. The corporations in Red China get subsidy from the government. Even those investments are worth nothing, they can guarantee their people to have jobs. It is the thing we can't have. It is the goal they want but we feel sorry for. It makes people wonder the true value of RMB. After all, the RMB is not an international currrency. It can not be traded and exchanged freely in the international financial markets. The Red China has not open their international capital account to every citizen of Red China.  There are so many restrictions in Red China. They use their currency RMB as a way to seduce our manpower and technologies to help itself get greater improvement on pruduction and marketing. Those RMB may be worth nothing if Red China authority wants to let RMB depreciated as they wish. How come our naive Taiwanese people want to devote themselves so much to earn the worthless RMB? Because we treat Red China as the one like the USA? Because we are trained from the textbooks written by Americans and other well developed society which says that we should treasure free conpetition? But we do not understand those rules has been changed as those Red Chinese people wish and they DO take advantage of us because we follow those rules and they don't. It does work if Red China authority says so. It does not work if Red China authority changes its mind.

  Dear American people, I have to ask for your help. If you could choose your vendors in your supply chain and there are three companies from Taiwan, Red China and South Korea. Please choose the company from Taiwan even the company can not offer the best deal compared with those ones in Red China and South Korea. Corporations from Red China and South Korea all have their government supports, but our government believes in freely competition and gives no help to Taiwanese corporations. We, Taiwanese, have to pay a bigger prize to produce those things. So I do ask for your help. Please choose those companies from Taiwan to be your suppliers if you could. Taiwan is not an international member. We are not a member of United Nation. We are not a member of IMF. If we have financial crisis, we can't get support as South Korea had before. We have to live on our own. We have to live on under the threat of Red China and their one-China policy to the world. I believe myself as a Chinese, but not the one from the Red China. I am a citizen of Republic of China. Nobody can deny that the Republic of China still lives on the earth which has not be extincted by the Red China, the People's Republic of China you call it. It is a big difference that people in Taiwan, the Republic of China, treasure their own freedom and respect the world rules of business. But we just have higher production cost because we have to pay a bigger prize to own those technologies. We pay a lot to join the world competition. We have no support from world organizations if we have troubles. We are always on our own no matter what happens. It is the difference between Taiwan and the South Korea. It is a big difference between Red China and Taiwan. It is the price we pay a lot when you let the Red China to join the WTO in the title of under-developed area. We have to open our markets to Red China but they do not have to.