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Pact is a national
security threat: surveillance expert
By Chu Yu-ling, Lai hsiao-tung and Jason Pan / Staff reporters,
with staff writer
The nation’s proprietors of surveillance systems expressed worries that the
“housing interior decoration and exterior design” industry included in the
recently signed cross-strait service trade agreement may have national security
implications, as the industry is involved in the installation and maintenance of
surveillance systems.
Liu Lu-chun (劉祿群), who installs surveillance cameras in Chiayi City, said that
his business is a special regulated industry, because many public infrastructure
and building projects are required to install security camera systems.
“Right now, the installation of Chinese-made surveillance systems for
public-sector projects in Taiwan is forbidden,” Lu said. “However, after the
signing of the pact, it is very doubtful that we would be able to resist
pressure from China and continue banning the installation of Chinese-made
products.”
“For tender project procurement, if it goes with the lowest priced bid,
Taiwanese firms would lose out to competition from China,” he added. “If we
totally open up the sector, then Taiwan’s traffic control system and video
surveillance in public places would use electronics products made in China.
These would be installed by Chinese contractors. This is a serious threat to our
national security.”
Lu said that when Chinese corporations invest in Taiwan’s key industries, they
would have tremendous pricing advantage over Taiwanese firms as they can
integrate supply and production chains from upstream all the way downstream by
linking the manufacturing, transportation, sales and marketing and installation
service sectors.
“Take a large construction project as an example. A medium-sized Taiwanese firm
may need to bid at least NT$1 million (US$33,300) to make a profit, but a
Chinese company may be able to secure the tender with a bid of only NT$350,000,”
Liu said.
He said that the major pricing difference between Taiwanese and Chinese products
lie in the chipsets for video monitors, which are ordered from foreign
manufacturers.
“For Taiwanese firms, they might place an order for 1,000 chipsets, while
Chinese firms can put in an order for 50,000, or even 100,000 chipsets. This
leads to a substantial price difference,” he said.
“So what’s left for Taiwanese firms? We may only have a competitive advantages
in service, technology and quality,” he said. “However, if there is a big
difference in price, do customers still care about product quality?”
Under the cross-strait service trade agreement, the opening up of the housing
interior decoration and exterior design industry also includes electricity and
plumbing repair work, carpentry, roofing and house painting, among others
businesses.
Chen Wei-han (陳韋翰), a veteran interior decorator in New Taipei City (新北市), was
incensed as he criticized the government “for letting Chinese companies come to
Taiwan and steal our businesses.”
“We will have more people out of work who are not earning any money. This
government is killing the livelihoods of blue-collar workers,” he said.
Tsai Wen-ying (蔡文英), a home decor materials proprietor for more than 35 years,
said that most of the timber products used in interior decoration in Taiwan come
from Indonesia.
“The Indonesian products are of good quality, with slightly higher prices. The
timber and wooden floor products from China are cheaper by at least 10 percent
or more, but they are of bad quality, not very durable and they do not last for
as long. Therefore the Chinese products are mostly used for outdoor exhibits and
displays of model homes,” he said.
Once Taiwan opens up to Chinese companies, prices would be driven down and bad
quality products would proliferate.
“It’s Taiwanese consumers who will suffer the consequences,” Tsai said.
Interior decorator 66-year-old Tsai Ching-wen (蔡清文) said that most Taiwanese
firms are small or medium-sized enterprises, while Chinese corporations are
adept at investing a lot of money.
“In this way, Chinese companies and workers will eventually compete for jobs in
our trade. Taiwanese firms and laborers will not get any business. We will not
be able to survive,” Tsai said.
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