Lead:
The global shipping industry is complex, and a recent $4 billion order from Taiwan's Evergreen Shipping Company has regained public attention. The order is in the spotlight not only for its sheer sum, but also because it has exposed the complex relationships of Taiwan, Japan and South Korea to the sun. This article delves into the reasons behind it, involving EVA Shipping's history of cooperation, external intervention, tensions and Taiwan's economic policies to solve this complex mystery.
1. The history of cooperation of Evergreen Shipping
Evergreen Shipping chose to hand over the $4 billion shipbuilding order to shipyards in South Korea and Japan, ruling out Chinese mainland. This decision was not accidental, but stemmed from a long-standing relationship. Samsung Heavy Industries has always been a close partner of Evergreen Shipping, providing high-quality services to it, from the order of six 24,000TEU-class A-class container ships in 2019 to the large order of 20 15,000TEU container ships in 2021. On the other hand, although Japan's JMU has not delivered container ships directly to EVA Marine in the past, it has a close relationship with Taiwan, and its cooperation with the Imabari Shipbuilding Joint Venture has made it deeply involved in the operation and management of EVA Shipping.
The continuation of this cooperation history provides a solid foundation for Evergreen Shipping to make this choice.
Second, the influence of external forces and tensions
External forces, especially the United States, may have had an important impact on Taiwan's shipping decisions. As a global maritime hegemon, the influence of the United States on global maritime shipping cannot be underestimated. Taiwan's unique geographical location and close military and economic ties with the United States may have influenced the choice of Evergreen Shipping to some extent.
In addition, the instability of the situation in the Taiwan Strait is also an important factor. Under the current tense relations across the Taiwan Strait, Taiwanese shipping companies will naturally worry about the future. If the unexpected situation causes the economic and trade relations between China and Taiwan to be damaged, then these newly built ships may be at risk. In order to reduce uncertainty in the execution of projects, Taiwanese shipping companies may prefer to choose relatively "safe" partners, namely Japanese and South Korean shipyards.
The combination of these factors may make Evergreen Shipping's decision not just ignore the strength of mainland shipyards, but out of consideration of external factors and the situation in the Taiwan Strait.
Third, the "poor Taiwan" policy is imperative
Although Taiwan's Evergreen Shipping's choice is understandable, from a Chinese mainland point of view, the decision is difficult to accept. Taiwan's huge trade surplus with the mainland means that Taiwanese companies have gained huge benefits in the mainland market. If Taiwanese companies choose to hand over orders to other countries after profiting from the mainland market, this will cause serious dissatisfaction. Therefore, some voices call for the cancellation of the economic cooperation framework agreement and the implementation of the "poor Taiwan" policy to encourage Taiwanese enterprises to give more consideration to the mainland market.
ECFA is a free trade agreement signed by the two sides in 2010 to lower tariffs and commercial barriers on both sides while improving cross-Strait relations. The deal's impact on Taiwan is huge, including tariff preferences for a large number of Taiwanese products, with an estimated economic advantage of $13.8 billion for Taiwan and an advantage of $2.86 billion for the mainland.
If the ECFA is cancelled, it will have a serious impact on Taiwan's economy, especially in services such as banking, securities, insurance, medical care and accounting, and Taiwan may lose more market access opportunities. On the other hand, the mainland can put Taiwan under greater economic pressure by influencing other economic powers to prevent them from signing free trade agreements with Taiwan, while also providing more market share for the mainland's maritime industry.
Summary:
Taiwan's Evergreen Shipping chose to hand over its $4 billion shipbuilding order to shipyards in South Korea and Japan, ruling out Chinese mainland. This choice stems from multiple factors such as a long history of cooperation, the intervention of external forces, and the uncertainty of the situation in the Taiwan Strait. However, if Taiwanese companies have been biased towards other countries, the mainland will also need to take action to protect its interests.