Public welfare speech by legislative councillor lu xiuyan on "hung kwan pui cultural and educational foundation"

Legislator Lu Xiuyan's public welfare speech on "Hong Junpei Culture and Education Foundation"

(Taiwan Business Daily News) people are concerned about the signing of cross-strait service trade, and the financial industry is also one of the opening up. On May 10, the Hong Junpei Culture and Education Foundation invited legislator Lu Xiuyan to give a lecture on "Financial Development benefits the country and the people." with his experience and background of focusing on financial and financial development as a legislator for many years, member Lu may have benefited a lot.

Financial cooperation is the focus of cross-strait development in the future, especially in the bilateral financial industry is in a period of structural transformation. Taiwan's financial industry has rich practical experience and mature financial technology, but it is in an environment of market saturation and excessive competition. Operators must expand their market business in order to improve their financial constitution.

On the other hand, at present, the proportion of indirect finance in the mainland is high, and the problem of credit control of financial institutions is serious, so expanding the field of direct finance is the future direction, and in the face of the pressure of international opening up, the local financial industry must improve its talent, efficiency and commodity innovation ability. the financial market is in urgent need of soft power to assist in upgrading and transformation.

On the other hand, Taiwan has the technology, talent, and experience needed by the mainland, and the mainland also has the market foundation that Taiwan needs. The complementary relationship between the two sides will promote their financial integration, and the two sides are expected to create closer cooperative relations in the future.

Starting with Taiwan's financial environment and related economy, legislator Lu Xiuyan said that Taiwan's economic growth has slowed down and exports are not enough in recent years, which is largely due to its poor physique or structure. First of all, export products are concentrated, more than 50% of them are concentrated in electronics, plastics, chemistry, optics and other industries, and more than 50% of enterprises adopt the mode of "Taiwan taking orders and China's exports". The proportion of intermediate wealth is high, and it is easy to be affected by the boom. for example, the European debt problem has led to a decline in the notebook market in Europe and the United States, and Taiwan's spare parts export market is naturally not good. At present, the mainland's economy is taking off, and many products in the middle and upper reaches can be produced on their own. In the face of price-cutting competition from China, Taiwan naturally does not have much competitive advantage under these conditions.

In addition, most of Taiwan businessmen produce contract manufacturing industries such as low added value and low gross profit margin, resulting in the phenomenon that Taiwan businessmen can only seek low labor costs in the mainland or Southeast Asia, and there is no real benefit to Taiwan in creating jobs. In terms of global economic and trade cooperation, in the global economic reshuffle, seeking cooperation and global bilateral and regional agreements have become a trend. Taiwan's market is not decentralized enough, and the efficiency of participating in multilateral economic negotiations is too slow (different from South Korea's national conditions). China, Japan and South Korea are all talking about FTA, and Taiwan's slow efficiency may face the crisis of marginalization. Before ASEAN RCEP did not join, Taiwan is now facing a dilemma of disadvantage, such as services and trade issues, signing FTA, joining TPP, and so on. Maybe it's time for the people to make a choice.

In recent years, economic and trade exchanges between entities between the two sides of the strait have become increasingly close, and relevant financial services need to be matched with each other. at present, the mainland is carrying out financial reform. Lu Xiuyan believes that Taiwan's financial services have its advantages, and Taiwan is still more advanced than the mainland in many aspects. such as credit cards, wealth management, fund management, and so on. Mainland China Merchants Bank is an example. It has gone from a small bank to the bank with the largest number of credit cards issued on the mainland, and it is also the most profitable. Although its scale is far smaller than that of the four major banks on the mainland (China Industry and Commerce, China Construction, Chinese Farmers, and China), credit cards can do first, in which the head of their credit card department is Taiwanese, and credit card information systems and marketing strategies are all planned and constructed with the help of Taiwanese. It is obvious that Taiwan's financial institutions still have a niche in many areas.

The two sides of the strait should enlarge the pattern and raise their horizons, and the two sides should show their respective advantages to cooperate with each other, with the goal of accelerating the promotion of the international competitiveness of their financial industries. This is the original intention of cross-strait exchanges, rather than finding each other's weaknesses. Let each other develop very hard. Taiwan's existing seven bank offices have been upgraded to branches, which should not have much impact on the mainland. The mainland can be more generous and share the market with Taiwan. On the contrary, what the mainland really needs is Taiwan's experience and talents.

For example, many things that have happened in the mainland have happened in Taiwan before, or some structures are very similar, such as the stock market draw and the retail-dominated stock market, the investment mentality is also very similar. Such commonality is the "cultural similarity" that fosters this group of people. The road that Taiwan has tested, tested, and traveled should be valuable reference information for the mainland.

Not only the past experience can be used for reference, in the future, Taiwan will also have the experience of new financial business development earlier than the mainland, which can be shared. In addition to business, there is also the establishment of a financial system, such as a credit insurance mechanism for small and medium-sized enterprises, or a central deposit insurance system being planned in the mainland. Therefore, the two sides should take a long-term view, enlarge the pattern, and cooperate in good faith with their respective advantages to enhance international competitiveness.

Taiwan's financial industry is the next wave of important industries, but it is a fact that there is no international competitiveness, and it is impossible to encourage them to go to financial centers such as New York and London. "for the financial industry to thrive, it needs to be nurtured by the market. The mainland market provides an opportunity for Taiwan's financial industry to grow gradually. " The two sides share the same language and culture, and their mastery of social structure is better than that of other foreign investors, which is very important to the development of the financial services industry.

After all, mainland finance started relatively late, so most of the goods that the mainland has just opened up are very mature products in Taiwan, such as credit cards. With regard to these mature commodities in Taiwan, Taiwan-funded banks are competitive in the mainland market, and only when they are competitive can they have the opportunity to make money and be able to make further development.

Then, with the gradual opening up of the mainland's financial business, Taiwan's financial industry can plant its own competitiveness step by step! Therefore, legislator Lu Xiuyan believes that the mainland is an opportunity for Taiwan's financial industry to catch up with advanced countries in Europe and the United States.

Legislator Lu Xiuyan's small file

Legislator Lu Xiuyan holds a bachelor's degree in land from National Chengchi University and a master's degree in the Institute of International Affairs and Strategy of Tamkang University. he was a reporter for China Television, director of Central China Television and provincial commissioner, 10th provincial councilor, 4th, 5th, 6th, 7th legislator, standing committee member of the KMT Central Committee, and deputy commander of the loving mother of Taichung City. He is now a legislator of the eighth term and has won the Best interview Award of the 79 TV Golden Bell Award.

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