Taiwan Tati Cultural and Educational Foundation

China has begun taking action over alleged antitrust violations in the auto industry, raiding or investigating many large foreign companies and applying pressure on them to lower prices or be fined. This is rattling foreign firms in China, and some experts and academics are calling on the international community to launch joint countermeasures. The smell of gunpowder is emanating from what could develop into a trade war between China and the rest of the world.

China’s National Development and Reform Commission is investigating a dozen automakers, such as Volkswagen AG-owned Audi, BMW, Daimler AG-owned Mercedes-Benz, Tata Motors-owned Jaguar Land Rover, Fiat-owned Chrysler, Toyota and Honda. Since last month, all these companies have announced car or component price cuts.

As an island on the Western edge of the Pacific Ocean, Taiwan is vulnerable to tropical cyclones that develop into typhoons, while its position on the Pacific “Ring of Fire” makes earthquakes a frequent occurrence. We cannot avoid natural disasters such as these; we can only respond to them.

What about man-made disasters? Industrial development involves hidden dangers. How serious the risks are depends on how well the government manages industrial growth, as well as the social conscience and responsibility of business leaders. Nuclear power and petrochemicals are particularly risky. They are like bombs that could explode at any time.