The government of Chongqing City, western China, is ambitious and aggressively trying to attract international investment projects by offering various incentives which are estimated to sacrifice large tax revenues in the short term but enjoy larger intangible and economic benefits in the long run. The Taiwan government should take such long-sighted strategies to tout international investment, said Acer founder Stan Shih.

Shih recently returned from a venture capital forum in Chongqing and expressed his opinions based on his visits there on September 28.

The Taiwan government has been encouraging international enterprises to set up regional headquarters and R&D centers in Taiwan for a while, but has said more than it has actually done for incentives it offered and promises made, Shih pointed out. In addition, Taiwan government officials care more about short-term cost-effectiveness than long-term investment returns because the former usually influence elections, Shih indicated.

Shih also recommended that Taiwan-based manufacturers shift some of their resources to own-brand business operations and those related to proprietary intellectual property so as to avoid price competition.