2021 Taiwan-Chile Industrial Forum

By Francisco Yeh, International Affairs Department of TEEMA

Mr. Richard Lee, Standing Director of Chinese National Federationo f I ndustr i e s (CNFI) and Chairman of Taiwan Electrical and Electronic Manufacturers' Association( TEEMA), Mr. Richard von Appen, President of the Federation of Chilean Industr y (Sociedad de Fomento Fabri l, SOFOFA) of Chile have s i gned collaboration agreement at the "2021 Taiwan-Chile Industri a l Forum" in a virtual signing ceremony held simultaneously in Taiwan and in Chile on July 30 for collaboration in the field of smart manufacturing.
The purpose of this MOU is to specify the collaborative action between CNFI and SOFOFA, in terms of disseminating, promoting, and sharing experiences; as well as contributing to the field of their respective competencies, improving the competitiveness of national industrial sectors, facilitating the flow of investment and technological exchange between Chile and Taiwan.
Attendees of the forum include Mr. Chih-hung Liu, Deputy Director of the Bureau of Foreign Trade in the Ministry of Economic Affairs, Ms. Silvia Liu, Representative of Taipei Economic and Cultural Representative Office in Chile, Mr. Roy Chun Lee, Senior Deputy Executive Director of Taiwan WTO and RTA Center, Ms. Hsu, Kristy Tsun Tzu Associate Research Fellow of Taiwan WTO and RTA Center, Mr. Richard von Appen, President of SOFOFA, Mr. Jorge O'Ryan Schütz, General Director of the Export Promotion Directorate (ProChile), Ministry of Foreign Affairs(Chile), Mr. Frank Hsieh, Chairman of Kenmec Mechanical Engineering and Supervisor of TEEMA, among others.
Standing director Mr. Richard Lee delivered a welcome remark at the forum, he said that Chile has been one of Latin America's fastest-growing economies, whose economic success is dubbed as the "Chilean Miracle". Chile is a country enjoying more advanced economic and industrial development in South America. Its service industry, mining, agriculture, forestry, and science and technology industries are amongst the leading pack in South America.
Many trading and investment opportunities are to be explored between Chile and Taiwan. SOFOFA is Chile's most representative organization and has a significant influence on local economic growth. Its members account for about 30% of the country's gross domestic product (GDP).
In comparison, Taiwan was also known as the "Taiwan miracle" due to the rapid economic growth in its early industrialization stage. Taiwan's electronics industry is now a major player in the world economy and an integral part of the global supply chain. CNFI consists of 158 member associations, representing more than 110,000 companies in Taiwan, accounting for about 37% of the nominal GDP. This collaboration agreement will serve as a good foundation for the future cooperation. Mr. Richard von Appen, President of SOFOFA pointed out in his speech that "there is still a lot of work to be done in terms of trade and investment between Chile and Taiwan.
The MOU represents a critical step for future cooperation and implementation of plans and activities. The good news is that CNFI and SOFOFA will both be taking the lead in the post-pandemic era and open up new business opportunities, which would strengthen the bilateral economic relationship.
Mr. Chih-hung Liu, Deputy Director of the Bureau of Foreign Trade in the Ministry of Economic Affairs said that "In the past, Taiwanese companies focused on the Asian market. With the reorganization of the global supply chain, Taiwanese enterprises are paying more and more attention to the strategy of approaching the market. Chile provides a friendly environment, with its service and mining industry having a very mature foundation for development.
Previously, imports from Chile were concentrated on agricultural products. However, during the post-pandemic era, Chile has regained its focus on digital technology, the signing of MOU can fortify the cooperative relationship."
Mr. Jorge O'Ryan Schütz, General Director of the Export Promotion Directorate (ProChile), Ministry of Foreign Affairs, Chile mentioned that "Chile wants to promote foreign investment in Chile, and we are currently experiencing major economic changes. This instability is not temporary but permanent. We have seen many changes in foreign trade. How to promote bilateral relations and how to maintain its strength? We hope boost our competitiveness via digital technology, the signing of this cooperation agreement is very important".
During keynote speeches, Ms. Hsu, Kristy Tsun Tzu Associate Research Fellow of Taiwan WTO and RTA Center shared her view on "Enhancing Chile-Taiwan Collaboration for GVC Development in a New Investment Landscape", Mr. Frank Hsieh, Chairman of Kenmec Mechanical Engineering and Supervisor of TEEMA shared his view on "The Latest Development Introduction and Case Studies of Smart Manufacturing Technology in Taiwan", Supervisor Mr. Frank Hsieh pointed out that Kenmec Mechanical Engineering is the world's leading supplier of automated production solutions and logistics systems in the post-pandemic era, Chile has a great demand for smart manufacturing, Kenmec Mechanical Engineering is looking to further expand into the Chilean market. Mr. Rodrigo Mujica, Chief Economist of SOFOFA shared his insights into "Chilean Industrial Development and Future Perspectives". In the "Panel Discussion" session cohosted by Mr. Roy Chun Lee, Senior Deputy Executive Director, Taiwan WTO and RTA Center and Mr. Manuel José Prieto, International Affairs Department of SOFOFA, all speakers engage in a passionate panel discussion, responding to questions from the moderator.
At the end of the forum, Representative Ms. Silvia Liu concluded that Taiwan's advanced technology and digital industries are an indispensable and important element of the global industrial chain.
Therefore, if Taiwan can join CPTPP, it will help complete the industrial value chain in the region. In addition, Chile boasts its advantage of having signed free trade agreements with more than 60 countries around the world, which would serve as a stepping stone for Taiwanese industries in their venture into the Latin Ameri can , European and American markets.