UMC soars as US eyes SMIC banUS-CHINA TENSIONS: Novatek is another likely beneficiary, as a US ban would make it difficult for the Chinese firm to tap into the driver IC marketBy Lisa Wang / Staff reporterUnited Microelectronics Corp (UMC, 聯電) yesterday saw its share price soar to close at a two-week high on reports that Washington is looking to ban Semiconductor Manufacturing International Corp (SMIC, 中芯) amid an escalating US-China trade dispute. US firms would require a license before shipping to SMIC if US President Donald Trump’s administration imposed export restrictions on the Chinese chipmaker. Photo: Hung Yu-fang, Taipei TimesTurnover of UMC shares hit 97.93 million yesterday, the biggest since Monday last week. SMIC shares tumbled 22.88 percent to end at H$18.24 on the Hong Kong Stock Exchange. UMC, Vanguard International Semiconductor Corp (世界先進) and GlobalFoundries Inc are likely to receive orders transferred from SMIC if the Trump administration further tightened its grip on SMIC and other Chinese semiconductor companies, Jih Sun Securities Investment Consulting Co (日盛投顧) said in a research note.

Idea that museum’s treasures belong to KMT deridedBy Chen Yu-fu and Lin Liang-sheng / Staff reportersA suggestion by a Chinese Nationalist Party (KMT) member that the National Palace Museum’s holdings belong to the party, and therefore its ticket revenues should go to the party, has stirred up a hornets’ nest and triggered criticism from government officials and others. She called on party headquarters to demand their return and for the museum’s ticket money to be turned over to the party as well. A visitor looks at the famed Jadeite Cabbage With Insects at the National Palace Museum in Taipei on Aug. 15, 2016. “National treasures are not the same as treasures of a political party,” it said. “Of course the treasures of the National Palace Museum belong to Republic of China,” Chu said.

Nation to ensure quality of imported pork, beefREMOVING BARRIERS: The government would establish mechanisms to trace the source of pork and beef, and set up a NT$10 billion fund to support local hog farmersBy Dennis Xie / Staff writer, with CNAThe government would adhere to scientific evidence and international standards to ensure the quality of US pork containing ractopamine and US beef entering Taiwan, Premier Su Tseng-chang (蘇貞昌) said yesterday. The public’s preference for local pork would make it competitive against US pork, despite the latter being cheaper, Su told reporters, citing data showing that Taiwanese consume more local pork than imported pork. The local pork market has a self-sufficiency rate of more than 90 percent, the data showed. An employee at a supermarket in Kaohsiung yesterday holds signs reassuring customers that all pork products sold at the store contain only Taiwanese pork. The government would place the health of Taiwanese foremost, Su said, adding that it would implement measures such as source-tracing and clear labeling of pork and beef products.

Professor explains cause of Turtle Island’s milky seaBy Chang Yi-chen and Dennis Xie / Staff reporter, with staff writerAn oceanographer has explained the reason for the formation of the “Milk Sea” (牛奶海) — an ocean area off the coast of Yilan County that has become a tourist hotspot because of its milk-colored water. The Milk Sea surrounding Turtle Island (Gueishan Island) in Yilan County is pictured on Sunday. “Soaking in the [Milk Sea] for a prolonged period could have an effect similar to a chemical peel,” she added. Although “sourer,” the Milk Sea has coral, because hot spring water is mixed with seawater as it gradually rises, she said, adding that water below the white-colored surface is actually no different from regular seawater. Rock falls, landslides, as well as changing tides, currents and hydrothermal vents are factors contributing to the changing boundaries of the Milk Sea as observed every year, she said.

KMT congress backs ‘1992 consensus’NATIONAL CONGRESS: Its report on party reform included a suggestion that one in every five KMT nominees for legislator-at-large seats should be younger than 40By Sherry Hsiao / Staff reporterThe Republic of China (ROC) Constitution is the “rock” for stable cross-strait relations, a Chinese Nationalist Party (KMT) reform committee report presented at the party’s national congress yesterday said, adding that the “1992 consensus” should be applied to maintain cross-strait relations. The KMT yesterday held its national congress at the Sun Yat-sen Memorial Hall in Taipei. Photo: Chien Jung-fong, Taipei TimesKMT Deputy Secretary-General Ko Chih-en (柯志恩) delivered the committee report. Another was to limit the term of KMT Central Standing Committee members to one consecutive term, with a maximum term of eight years. The committee report also proposed that no fewer than 15 percent of KMT Central Committee members be under the age of 40.

KMT seeks referendum on US porkAUTHORIZATION: The president has evaded legislative oversight by allowing US pork imports, KMT Chairman Johnny Chiang said, urging people to ‘take back the power’By Sherry Hsiao / Staff reporterThe Chinese Nationalist Party (KMT) yesterday said that it would start collecting signatures to initiate a referendum against the government’s decision to allow imports of US pork containing ractopamine. Chinese Nationalist Party (KMT) Chairman Johnny Chiang, front row center, is joined by party members in Taipei yesterday as he announces a referendum drive against the government’s decision to allow the import of US pork containing ractopamine. The proposed referendum question would read: “Do you agree to a total ban on the importation of pork and related products containing leanness enhancing additives (ractopamine and other beta agonists)?” the KMT said. It is that US pork containing leanness enhancing additives harms bodily health,” she added. To hold a national referendum, a number equal to 1.5 percent of voters in the most recent presidential election must sign a petition supporting the referendum proposal.

Local financial firms cut China lendingRISK REDUCTION: Although China remains the second-largest market to which local financial holding firms are exposed, last quarter exposure to the country fell 2.3 percentBy Chen Cheng-hui / Staff reporterThe nation’s 16 financial holding companies last quarter cut their combined lending to China to NT$671.34 billion (US$22.73 billion) from NT$698.26 billion in the first quarter, down 9.2 percent from NT$739.71 billion a year earlier, data released on Saturday by the Financial Supervisory Commission showed. The financial holding companies’ combined foreign lending last quarter fell to NT$3.54 trillion, compared with NT$3.56 trillion in the first quarter and NT$3.58 trillion a year earlier, the data showed. Many financial holding companies last quarter shifted their China lending business to focus mainly on syndicated loans to diversify risks, it added. Compared with the second quarter of last year, Taiwanese financial firms’ lending to China had fallen by NT$68.4 billion as of the end of June, the data showed. The financial holding companies’ combined foreign exposure — including foreign investment, and corporate and interbank lending — totaled NT$20.42 trillion in the second quarter, the data showed.

Pig farmers urge strict enforcement of import rulesStaff writer, with CNAPig farmers on Saturday called for strict implementation of rules on the amount of ractopamine residue allowed in imported US pork products, as well as inspection and labeling. Tseng Sheng-cheng (曾勝誠), who represents pig farmers in Tainan, said the government could introduce third-party inspections and make them at least as frequent as those applied to domestically produced pork. Wang Chung-li (王忠禮), who represents Kaohsiung pig farmers, said that he hoped the government could adopt even stricter limits on pork organs containing the leanness-enhancing drug, adding that pig farmers’ associations nationwide would hold a meeting on Wednesday next week to come up with more suggestions for the government. The commission’s guideline for pig kidneys is 90ppb of ractopamine. At present, Taiwan only allows imports of US pork and pork products if they are free of any trace of ractopamine.

Freedom of the press dead in Hong Kong: advocatesBy Chung Li-hua and Dennis Xie / Staff reporter, with staff writerHong Kong’s publishing world and the fate of its democracy advocates were the focus of a Taipei forum on freedom of the press on Friday, where some of the speakers, who included exiled Chinese and Hong Kongers, said that freedom of the press was dead in the territory. Lam Wing-kei, former co-owner of Causeway Bay Books in Hong Kong, speaks at a forum in Taipei on Friday. Gui in February was sentenced to 10 years in jail for “illegally providing intelligence overseas.”Chinese poet and editor-in-exile Bei Ling (貝嶺) told the forum that freedom of the press no longer exists in Hong Kong. The Chinese government has blocked sea channels between Hong Kong and Taiwan to prevent people from secretly fleeing to seek asylum, he said. Simon Cheng (鄭文傑), a former employee of the British consulate in Hong Kong who was detained and allegedly tortured in Shenzhen last year, has said that he saw more than 10 Hong Kongers under detention at the same place he was held, and so he is an important eyewitness to how China treats some Hong Kongers, Lam said.

Additive levels need review: lawmakersUNANSWERED QUESTIONS: The Taiwan People’s Party caucus whip asked why the government was rushing to set standards for ractopamine while concerns remainBy Wu Su-wei and Chen Yun / Staff reportersOpposition lawmakers yesterday urged the Democratic Progressive Party-led government not to push through new maximum residue limit (MRL) standards for ractopamine in pork without legislative review. Photo: Wu Su-wei, Taipei TimesOther parts, including hog maw, intestines, heart, tongue, brain and blood, would also be permitted to contain 0.01ppm of the additive, it said. Although Tsai has said that the new standards do not need legislative review, Chen called on Legislative Speaker You Si-kun (游錫堃) to convene cross-caucus negotiations and health committee meetings to review the standards. The government should not recklessly open up US pork imports without presenting convincing assessments and pork labeling regulations, she said. Now, the ministry basically accepts the commission’s 2012 standards, except it is imposing stricter MRLs for pork kidney products, he said.

Czech delegation ends six-day visitStaff writer, with CNAThe 89-member delegation of the Czech Republic, headed by Czech Senate President Milos Vystrcil, on Friday evening departed Taiwan, ending their six-day visit. He looked forward to Taiwanese carriers starting direct flights between the nations and for Taiwan to export high-value-added products to the Czech Republic, he said. Czech Senate President Milos Vystrcil, fourth left, leads the Czech delegation in a round of applause at Taiwan Taoyuan International Airport before leaving Taiwan on Friday. Vystrcil and the delegation, which included eight Czech senators and Prague Mayor Zdenek Hrib, flew to Taiwan on Sunday last week for the landmark visit, despite strong condemnation from China. The visit also resulted in the Czech Republic allowing Taiwanese state-run banks to open branches in the country and China Airlines to operate direct flights there.

Far EasTone targets 11% stake in APT in unexpected dealBy Lisa Wang / Staff reporterFar EasTone Telecommunications is to pay up to NT$5 billion (US$169.3 million) to acquire an 11.58 percent stake in Asia Pacific Telecom (APT), it said in an unexpected announcement late on Friday. Far EasTone plans to subscribe to 500 million new shares issued by APT, which is 40 percent owned by Hon Hai Precision Industry, it said. Hon Hai’s APT stake is to fall to about 36 percent after the transaction. The spectrum-sharing deal would “help Far EasTone gain better spectral efficiency and reduce network deployment costs, allowing more leeway for the company to develop 5G-enabled applications,” Far EasTone president Chee Ching (井琪) said in a statement. During government auctions in February, Far EasTone spent NT$43.04 billion on securing 5G spectrum on the 3.5GHz and 28GHz frequency bands.

COMPLAINT: A-holes on Taiwan’s mountainsTranquil, silent, expansive: nothing beats a climb up Taipei’s Elephant Mountain — except when the noise startsBy Noah Buchan / Staff reporterOnly when I reach a rest area on Muzhi Mountain (拇指山) do I realize how out of control mountain assholes have become. This story was originally sketched out as a travel piece about the ease and convenience of climbing Taipei’s Elephant Mountain, as well as Muzhi Mountain and the 95 Peaks (9五峰) beyond it. Elephant Mountain has many critters scurrying around. Statues of Guanyin can be found throughout Elephant Mountain, as well as the high elevations of the 95 Peaks and Muzhi Mountain. A closer look at the shrine reveals many interpretations of Guanyin: a standing Guanyin, a sitting Guanyin, Guanyin on an elephant, Guanyin on a tiger, Guanyin on a pedestal above a fat Buddha.

MOU signed for new laser tech center’PRECISION CUTTING’ Access to high-end laser sources would enable a wide range of applications that would boost the domestic industry, TAMI chairman Alex Ko saidBy Angelica Oung / Staff reporterGermany-based Trumpf Group, which specializes in machine tools and laser technology, is to work with the Industrial Technology Research Institute (ITRI, 工業技術研究院) to establish a Taiwan Laser Application Center in Tainan. Photo: Wang Yi-sung, Taipei Times“If we imagine laser equipment being a car, the laser source, which is like the engine, is provided by Trumpf,” Liao said. “Imagine if the wafer made by Taiwan Semiconductor Manufacturing Co (台積電) is a cake. “One laser cutter for the semiconductor industry is worth more than 100 of the products we are exporting. Wang — who visited Trumpf’s headquarters in September last year — said the German firm would be a powerful partner for the development of Taiwan’s laser equipment industry.

KMT concerned about pork labelsKMT CONCERNS: Country-of-origin stickers would not sufficiently inform consumers whether products contain ractopamine, while health and economic impacts are unclearBy Sherry Hsiao / Staff reporterThe Chinese Nationalist Party (KMT) yesterday raised concerns over the new country-of-origin labels of pork products to be introduced once pork from the US containing ractopamine enters the domestic market next year, while some farmers are planning protests against the policy in Taipei. At a news conference in Taipei, KMT Culture and Communications Committee chairwoman Alicia Wang (王育敏) said that there might be “loopholes” in the labeling. Chinese Nationalist Party (KMT) Culture and Communications Committee chairwoman Alicia Wang, center, at a news conference in Taipei yesterday criticizes the government for permitting imports of US pork products containing ractopamine. Photo: CNAReferring to pork fillings for dumplings as an example, she asked whether a product should be labeled as originating in Taiwan or the US, if it contains a both domestic pork and imported pork containing ractopamine. Liao said that farmers might take the protest to Taipei if the government allows US pork imports containing ractopamine.