TAIPEI, Taiwan - Terry Gou, chairman of the Hon Hai/Foxconn Technology group yesterday stated that he does not intend to abandon manufacturing, the foundation of Taiwan's real economy, while attending a summit meeting with industry leaders from both sides of the Taiwan Strait in Nanjing.
Gou remarked that in light of momentous structural changes in economies and industries faced by both Taiwan and China, he hopes to see continued cross-strait collaborative efforts in meeting upcoming challenges. According to Gou, cross-strait counterparts may leverage synergy through their respective strengths. Where Taiwan excels at multifaceted innovations, market conditions in China allows for stable and sustainable growth, he said.
"Hon Hai/Foxconn will not abandon the manufacturing sector amid the ongoing transitions from an export-oriented economy towards domestic consumption taking place on both sides of the strait" said Gou. "Manufacturing remains the foundation of the economies of Taiwan and China" continued Gou, adding that the sector needs to leverage the advent of Internet applications. Hon Hai/Foxconn have already set up numerous departments tasked with developing software and Internet-based applications to aid manufacturing, said Gou.
Gou also urged China's government to not overlook the manufacturing sector and exports, amid sweeping policy changes designed to foster domestic consumption. China had been promoting the elevation of industries and value creation, as previous emphasis on achieving a breakneck pace of growth is no long viable in the face of domestic and international economic concerns, said Gou.
Domestic consumption and exports are integral components of a sound economic structure, said Gou. The former requires tangible support from government policies, said Gou, while suggesting that middle-class wage levels must be raised to support growth of China's domestic consumption.
On monetary policy, Gou advised for a period of strengthening, followed by a period of strategic depreciation for the renminbi. According to Gou, a strong yuan will reduce the cost of equipment, materials and technical patents, while a weakened yuan will help stimulate domestic consumer spending.
In his address, Gou stated that many advantages may be yielded from the similarities in language and culture characteristics shared by Taiwan and China, while outlining new horizons in the fledgling culture and creative industries. According to Gou, the so-called cultural and creative industries encompass the fields of education, social media, entertainment, digital content, themed restaurants, and outlet retail stores. These industries hub may extend to the housing and lifestyle related markets said Gou, while pledging his conglomerate's commitment in forging the Greater China Dream by leveraging developments in the technology and manufacturing sector.