Liberty Times (LT): Why did you refuse Chinese capital the first time?
Jose Lin (林思吾): Back before [Alibaba Group Holding cofounder] Jack Ma (馬雲) spoke with me, I was approached by [the search engine company] Baidu. This was a major decision for me, and established my mindset on the issue of a Taiwanese consciousness.
In 2013, Baidu was looking to enter the Taiwanese market, and wanted to have the content from their question-and-answer Baidu Knows (百度知道) converted to traditional Chinese and made more accessible for the Taiwanese versions of Google and Yahoo.
Photo: Chang Chia-ming, Taipei Times
At the time, the problem Baidu encountered was that of the roughly 1 million question-and-answer threads on their servers, Google only returned search results for 300,000 — they hoped all 1 million could be made retrievable.
My specialty is search engine optimization, so Baidu’s hope in seeking me out was that I could help them solve this impasse. After that, there would be a succession of projects aimed at entering Taiwan.
As a company that was focused on helping businesses get prioritized by Web searches, being sought out by Baidu was like a gift from the heavens, but after I thought about it, I decided I did not want to do it.
Why not? I was worried that having Chinese content show up in Web searches done in Taiwan would be detrimental to the competitiveness of Taiwanese businesses.
Think about it, if the whole first page of a Web search showed results from Baidu, then it would be just that much harder for a Taiwanese start-up to show up in search results. It would obliterate all of their hard work.
A search engine is also a kind of medium, and another way to win control of a market. This would be very harmful to Taiwan. Personally I could not accept that — having my successes in business be built on the foundation of harming Taiwan. Therefore, I resolutely refused the offer from Baidu.
LT: Why did you also refuse capital from Ma?
Lin: In 2014, a private equity fund headed by Ma made an offer worth NT$100 million [US$3.2 million at the current exchange rate], equivalent to a 15 to 20 percent stake in the company.
The day we discussed the deal I told them that I would not take it.
The reason is that China is not the company’s primary market. If I took that money, it would not be a huge help to the company and I hoped that my personal success would not have much to do with China.
Awoo is a consultancy firm that is focused on helping companies increase traffic to their Web sites. Primarily we research the search algorithms used by Google and Yahoo, looking for ways to prioritize our clients in their search results — it is very profitable.
Later, the Sunflower movement took place, which was a catalyst for us to transform Awoo into a software start-up.
During the Sunflower movement I was there meditating and I had a moment where a sense of oppression washed over me, and I felt like Taiwan might soon be lost.
As a young entrepreneur I had a deep understanding that China and Taiwan must be separate from each other, and that I must follow a path that does not include China.
If Taiwan is to march forward as an independent, democratic country, there are three issues that must be addressed: industrial structure, national land planning and the China element.
With regard to industrial structure, the software industry is very important for Taiwan, especially because software development pays well, consumes few resources and concentrates intellectual resources.
This scenario is what the next generation in Taiwan should be aiming for.
Additionally, if a company is established in Taiwan, it should aim to globalize, not march toward China. If you want to follow a path that does not include China, Japan is a great choice.
LT: How can Taiwanese entrepreneurs compete with Chinese companies?
Lin: The first thing is to avoid the Chinese market, because in China you need to worry about your products being copied. You could have your specialty or your patents stolen — China is a country with zero concept of intellectual property rights.
So on the one hand you want to enter the Chinese market to make money, but on the other hand you worry about having your products copied. Is that not strange?
Taiwanese entrepreneurs can choose countries other than China to market themselves, such as South Korea, Japan, Vietnam and Indonesia.
These countries are not so welcoming toward Chinese, which is to Taiwan’s advantage. Japan is the best choice and is a large country.
Many Chinese companies that go to Japan have to disguise themselves as Japanese companies or find Japanese partners to cooperate with.
It is tough for entrepreneurs in Taiwan. For example, since China’s iQiyi [video streaming service] came to Taiwan, things have been very difficult for local media streaming companies.
This is especially true because Taiwan has no defenses or laws [to protect local businesses]. The public even lacks a sense of vigilance toward China.
For Chinese businesses, coming to Taiwan is like crossing an unguarded border. Bypassing local laws and establishing companies is a simple matter for them.
I felt a sense of crisis so early on that I established my business’ domain in Taiwan, Japan and Indonesia — I will not stay just in the Taiwanese market.
Normally after a business is established there are a few routes a proprietor can take: Become listed, do not become listed or sell the company to someone else.
I hope we can become Taiwan’s next Trend Micro.
Taiwan needs a lot more firms like Trend Micro.
LT: What advantages and disadvantages do Taiwanese entrepreneurs bring to the table?
Lin: One advantage Taiwanese entrepreneurs offer is speed. There are less rules to deal with. Japan is slower — every decision needs to be confirmed several times.
Also, Taiwanese companies are very adaptive and make quick updates based on changes in the operational environment.
Taiwan’s skilled workforce is also an advantage, and is second to none throughout East Asia and Southeast Asia.
Proprietors here have skills, but lack marketing ability. Taiwan’s fast mobile network speeds and its skilled workforce have attracted the likes of Microsoft, Google, Amazon and other major players in the industry who have come here to establish AI [artificial intelligence] research centers.
As for disadvantages, it really comes down to a lack of people with the know-how to break into markets.
Taiwanese have the skills, but do not know how to market themselves. Their understanding of different markets is too superficial, it is not refined enough.
For example, with regard to markets in Southeast Asia, each country there has its own unique culture. A deeper understanding of each individual market is needed.
Why have I refused Chinese capital and prefer funds from Silicon Valley? Money is neutral, but the meaning behind the investment is not neutral.
Why does the Alibaba Entrepreneurs Fund show a preference for Taiwanese groups? This is the first thing we need to think about.
Again, if the money comes from China, it will never be neutral.
The Alibaba fund is suitable for Taiwanese with aspirations for developing in China, but if one wants to expand one’s company worldwide and is not focused on the Chinese market, this fund should not be your first choice.
There is no need for us to become sacrificial pawns in the US-China trade war, plus the current tide of thought is not toward development in China.
Translated by staff writer William Hetherington
‘DENIAL DEFENSE’: The US would increase its military presence with uncrewed ships, and submarines, while boosting defense in the Indo-Pacific, a Pete Hegseth memo said The US is reorienting its military strategy to focus primarily on deterring a potential Chinese invasion of Taiwan, a memo signed by US Secretary of Defense Pete Hegseth showed. The memo also called on Taiwan to increase its defense spending. The document, known as the “Interim National Defense Strategic Guidance,” was distributed this month and detailed the national defense plans of US President Donald Trump’s administration, an article in the Washington Post said on Saturday. It outlines how the US can prepare for a potential war with China and defend itself from threats in the “near abroad,” including Greenland and the Panama
The Chinese Nationalist Party (KMT) is maintaining close ties with Beijing, the Democratic Progressive Party (DPP) said yesterday, hours after a new round of Chinese military drills in the Taiwan Strait began. Political parties in a democracy have a responsibility to be loyal to the nation and defend its sovereignty, DPP spokesman Justin Wu (吳崢) told a news conference in Taipei. His comments came hours after Beijing announced via Chinese state media that the Chinese People’s Liberation Army’s Eastern Theater Command was holding large-scale drills simulating a multi-pronged attack on Taiwan. Contrary to the KMT’s claims that it is staunchly anti-communist, KMT Deputy
RESPONSE: The government would investigate incidents of Taiwanese entertainers in China promoting CCP propaganda online in contravention of the law, the source said Taiwanese entertainers living in China who are found to have contravened cross-strait regulations or collaborated with the Chinese Communist Party (CCP) could be subject to fines, a source said on Sunday. Several Taiwanese entertainers have posted on the social media platform Sina Weibo saying that Taiwan “must be returned” to China, and sharing news articles from Chinese state media. In response, the Mainland Affairs Council (MAC) has asked the Ministry of Culture to investigate whether the entertainers had contravened any laws, and asked for them to be questioned upon their return to Taiwan, an official familiar with the matter said. To curb repeated
Myanmar has turned down an offer of assistance from Taiwanese search-and-rescue teams after a magnitude 7.7 earthquake struck the nation on Friday last week, saying other international aid is sufficient, the National Fire Agency said yesterday. More than 1,700 have been killed and 3,400 injured in the quake that struck near the central Myanmar city of Mandalay early on Friday afternoon, followed minutes later by a magnitude 6.7 aftershock. Worldwide, 13 international search-and-rescue teams have been deployed, with another 13 teams mobilizing, the agency said. Taiwan’s search-and-rescue teams were on standby, but have since been told to stand down, as
RSS