On November 28th, a European delegation visited DSET, sponsored by Taiwan’s Ministry of Foreign Affairs and the Friedrich Naumann Foundation. The delegation comprised six European scholars specializing in China and Taiwan issues. The delegation was led by Dr. Gudrun Wacker, a German scholar who has long observed cross-strait relations from the German Institute for International and Security Affairs, who engaged in discussions with DSET Executive Director Chang Chih-cheng on topics such as China’s industrial subsidy policies, Taiwan’s investment diversification, and economic security.
The visiting scholars included Dr. Jean-Pierre Cabestan, a French political scientist and current Director of the International Relations Department at Hong Kong Baptist University; Dr. Mathieu Duchatel, Director of the International Relations Center at the Institute Montaigne; Dr. Christopher Dent, an international political economist from Edge Hill University in the UK; Dr. Justyna Szczudlik, Deputy Director of the Research Department at the Polish Institute of International Affairs; and Dr. Tamas Matura, a scholar of Chinese and East Asian studies from Corvinus University in Budapest.
The two sides exchanged numerous perspectives and information on key industries driving global trade wars, such as the electric vehicle market, semiconductor industry layout, critical minerals, and new technology development needs. DSET Executive Director Chang Chih-cheng pointed out that China had long ago targeted specific industries through the “Made in China 2025” policy, supporting manufacturing growth through national subsidies. Drawing from his experience as a Japanese technology policy staff member, he noted that the decline of Japan’s manufacturing prowess is closely related to its domestic industry chain’s vertical integration, which has gradually caused large Japanese enterprises to lose market competitiveness in global competition and industrial horizontal division. In contrast, TSMC had early on recognized the advantages of Original Equipment Manufacturing (OEM), using this to build a global semiconductor ecosystem.
Dr. Chang mentioned that the market remains the key driver of supply chain development, but the impact of technological geopolitics is becoming increasingly significant. Interventions from nations, such as the United States’ trade restrictions, will impose certain limitations on supply chain development, making it clear that global division of labor is no longer as free and extensive as before.
Subsidy policies are another crucial factor. In the past, under the framework of globalization and the World Trade Organization (WTO), Western countries generally opposed subsidies. However, with changing global circumstances, these countries have begun to readopt subsidy policies. Dr. Chang highlighted the key question: “Can these countries rebuild their manufacturing base and create an ecosystem through subsidies?” Particularly in high-tech manufacturing, while subsidies can promote manufacturing revival, it remains to be seen whether Western countries can regain their core position in manufacturing.