[HN Gopher] Taiwan bans recruitment for jobs in China
       ___________________________________________________________________
        
       Taiwan bans recruitment for jobs in China
        
       Author : baybal2
       Score  : 173 points
       Date   : 2021-04-30 17:01 UTC (5 hours ago)
        
 (HTM) web link (asia.nikkei.com)
 (TXT) w3m dump (asia.nikkei.com)
        
       | ipnon wrote:
       | Economic interdependence is a deterrent to war. No country's
       | government can easily handle recessions, but a depression in
       | China would severely jeopardize the Faustian bargain the CCP has
       | given to the citizens of PRC: forfeit your liberties and you are
       | guaranteed prosperity.
       | 
       | China is Taiwan's largest trading partner. Taiwan is China's 6th
       | largest trading partner, but the total trade of Taiwan is worth
       | more than 1/3 of China's total trade with America. That is an
       | extraordinary amount for a country almost 14 times smaller than
       | the United States.
       | 
       | If trade is reduced between the two countries, it could lessen
       | the economic damage taken by the PRC if it were to initiate an
       | invasion, or even increase hybrid and gray-area warfare. This
       | would mean such actions would constitute less political risk for
       | the CCP.
        
         | MikeUt wrote:
         | On the other hand, an increase in trade gives China (the bigger
         | partner) more leverage to pressure Taiwan using economic
         | measures. Suppose 60% of all campaign political contributions
         | came from China's puppet companies in Taiwan. Or if companies
         | that lobby against China's interests suddenly (or gradually)
         | find themselves cut off from the Chinese market, while large,
         | politically-connected Chinese companies start undercutting them
         | in the Taiwanese market.
         | 
         | You don't need war to invade.
        
           | MeinBlutIstBlau wrote:
           | My thoughts were just dominating their economy, bankrupting
           | them, then putting Chinese politicians in power to take over
           | a failed state. It'd look more legitimate than Russia
           | annexing Crimea and since it's economic and complicated, the
           | average person wouldn't care meaning minimal media coverage.
           | If a regular person has to read more than a paragraph to full
           | comprehend what happened, it's just not worth worrying about.
        
         | elefanten wrote:
         | The alternative is that China will continue to salami slice and
         | break every marginal norm they can to choke and bleed out the
         | (ideological) competition.
         | 
         | Taiwan has to worry about large scale invasion but they also
         | have to worry about China using size, lack of attention to the
         | "small stuff" and inertia to much the same effect.
        
       | AnimalMuppet wrote:
       | How free are mainland engineers to take jobs in Taiwan? Can
       | Taiwan recruit from the mainland talent pool?
        
       | sillysaurusx wrote:
       | A surprisingly silly move from an otherwise intelligent country.
       | 
       | * Taiwanese prosecutors alleged last month that China's Bitmain
       | Technologies, the world's leading cryptocurrency mining chip
       | developer, illegally lured more than 100 engineers in Taiwan to
       | boost its artificial intelligence prowess.*
       | 
       | Ah yes, the illegal "offering money in exchange for services
       | rendered" offense.
        
         | iso8859-1 wrote:
         | The money offered is illegitimate though, the government of the
         | of the Republic has not authorized the rebels to print their
         | own money.
        
         | fallingknife wrote:
         | When market conditions drive up the price of labor, the owners
         | of large companies will:
         | 
         | 1. legally or illegally bring in (or lobby the government to
         | allow) an immigrant workforce to increase labor supply and
         | drive down wages (e.g. us low skilled labor market)
         | 
         | 2. collude with other companies not to compete over workers
         | (e.g. tech industry anti-trust action from a few years ago)
         | 
         | 3. pass laws against compensation reaching market levels (e.g.
         | US during wwii, Taiwan today)
         | 
         | 4. use forced labor (e.g. China today, US 1800's)
         | 
         | I don't like it anymore than you do, but it's not new, and I
         | wouldn't call it "silly"
        
         | xyzzy21 wrote:
         | You obviously know nothing about the geopolitical situation.
         | Pretty much negates what you are saying.
        
         | throwaway5752 wrote:
         | That seems like it's ignoring some other important
         | circumstances, like a month ago, when their neighbor was
         | staging military drills and threatening their existence if they
         | don't agree to be annexed? https://www.usnews.com/news/world-
         | report/articles/2021-04-09...
         | 
         | You see what has happened in Hong Kong. This is a bit more
         | nuanced than an issue of pay.
        
           | xtian wrote:
           | That article is vague even by the standards of Western
           | reporting about China. This Reuters article about the same
           | event is more specific: https://www.reuters.com/article/us-
           | taiwan-defence-idUSKBN2BU...
           | 
           | It says Chinese fighters flew inside Taiwan's air defense
           | identification zone. Here's a map which shows Taiwan's ADIZ: 
           | https://upload.wikimedia.org/wikipedia/commons/c/c9/JADIZ_an.
           | ..
           | 
           | You can make your own judgement as to whether that action
           | constitutes an escalation of threat. As far as I'm aware,
           | China's stance on what actions would trigger a military
           | response regarding Taiwan has not changed in decades.
        
             | throwaway5752 wrote:
             | I agree with you - it's an awful article, it was just the
             | first one I found searching for the quote I was looking
             | for. And you are right, more in the last four years Western
             | and specifically in the US, coverage of China have been
             | dubious, particularly some media entities. But I don't
             | think the Strait of Taiwan tensions and the recent South
             | China Sea escalations are anything that I need to find an
             | article to document, though.
             | 
             | If China can drastically weaken the semi industry in Taiwan
             | by hiring away their top talent to sit around and do
             | nothing, it would be a stunningly inexpensive way to help
             | achieve this long term strategic objective. They would be
             | foolish not to try, and it's understandable and correct
             | Taiwan would see it in this light.
        
             | chitowneats wrote:
             | That stance being: we own Taiwan and we will depose their
             | government by force if necessary, eventually. China senses
             | this moment as one of profound weakness for the West. What
             | makes you think they aren't preparing to strike while the
             | iron is hot?
             | 
             | Top brass in the U.S. military is saying an invasion is
             | likely within the decade: https://www.newsweek.com/top-
             | commander-fears-taiwan-could-in...
             | 
             | Edit: I fail to see how China invading Taiwan could be
             | considered a "military response", rather than a blatantly
             | illegal land grab according to international law.
             | 
             | Edit 2: The international law in question is the one
             | forbidding annexation: https://www.amnesty.org/en/latest/ne
             | ws/2020/07/israelopt-10-...
        
               | dheera wrote:
               | In practice, international law only applies to small
               | countries with small militaries.
        
               | chitowneats wrote:
               | Correct
        
               | rendang wrote:
               | Sometimes, not even them.
        
               | xtian wrote:
               | > we own Taiwan and we will depose their government by
               | force if necessary, eventually.
               | 
               | Until very recently this was Taiwan's stance on China.
               | 
               | What exactly would China gain from invading Taiwan? My
               | understanding is that their main goal is preventing the
               | expansion of US military presence and bases in the
               | region, which Taiwan's pro-independence party supports.
               | 
               | Response to your edit: China invading Taiwan would not be
               | an annexation according to international law. A small
               | minority of nations recognize Taiwan's sovereignty, and
               | historically it is not a sovereign nation. Taiwan
               | represents the losing side of a Chinese civil war that
               | recently decided it wants to be a sovereign nation as its
               | hopes of retaking the mainland have evaporated.
        
               | chitowneats wrote:
               | A propaganda coup, first of all. They have been promising
               | their increasingly nationalistic populace this prize for
               | nearly a century.
               | 
               | Second: They eliminate a very important forward operating
               | base for any future containment of China by Five Eyes &
               | Co.
               | 
               | Third: It's 23 million people who have built an advanced
               | economy. Being able to siphon that wealth will be a
               | massive boon for the CCP and other parts of China.
               | 
               | The rationale for invasion is clear. Particularly if they
               | have calculated they can't or won't be stopped. I know
               | more than a few mainlanders and they all strongly believe
               | that Taiwan and China will be "reunified" within their
               | lifetime.
               | 
               | Edit: Does anyone here care that none of the Taiwanese
               | want to be part of China? Yes, they are the "losing side"
               | of a civil war from almost a century ago. That's
               | completely irrelevant given how long they have had
               | sovereignty at this point. That they are not more widely
               | recognized in the international community is a tragedy.
               | The U.S. is correct to continue to support their
               | independence.
        
               | f6v wrote:
               | > Third: It's 23 million people who have built an
               | advanced economy. Being able to siphon that wealth will
               | be a massive boon for the CCP and other parts of China.
               | 
               | Right, who's going to buy from China-occupied Taiwan? In
               | this scenario, there's going to be a massive disruption
               | of Taiwanese economy. By the time it's over, someone else
               | will outcompete them. It's not 17th century, capturing
               | land doesn't guarantee any advantages.
               | 
               | > Edit: Does anyone here care that none of the Taiwanese
               | want to be part of China?
               | 
               | I get you. Crimeans don't want to be a part of Ukraine
               | either, yet the "international community" pretends they
               | do. Life isn't fair, and Taiwanese not wanting something
               | isn't going to change anything.
        
               | chitowneats wrote:
               | > Right, who's going to buy from China-occupied Taiwan?
               | 
               | We've been buying from China-occupied China, including
               | Xinjiang. Color me skeptical that international trade
               | with China will fundamentally change in response to an
               | invasion, ahem, "reunification". Taiwan's largest trading
               | partner right now is mainland China. That will only
               | accelerate with annexation and can offset export losses
               | elsewhere.
               | 
               | > I get you. Crimeans don't want to be a part of Ukraine
               | either, yet the "international community" pretends they
               | do.
               | 
               | The U.S. is also correct to oppose the annexation of
               | Crimea and further destabilization of the Donbass.
        
               | AnimalMuppet wrote:
               | > Crimeans don't want to be a part of Ukraine either, yet
               | the "international community" pretends they do.
               | 
               | I don't think the international community pretends any
               | such thing. It just doesn't oppose it strongly enough to
               | start a shooting war with Russia.
        
               | petre wrote:
               | > Does anyone here care that none of the Taiwanese want
               | to be part of China?
               | 
               | It would probably help if Taiwan had nuclear weapons.
               | China wouldn't risk an invasion. That or maybe I don't
               | know enough about Asia.
        
               | yeetman21 wrote:
               | >Does anyone here care that none of the Taiwanese want to
               | be part of China?
               | 
               | Who cares what they want? The confederacy succeeded from
               | the Union and the Union invaded it.
        
               | xtian wrote:
               | > Third: It's 23 million people who have built an
               | advanced economy. Being able to siphon that wealth will
               | be a massive boon for the CCP and other parts of China.
               | 
               | Ah yes, the filthy lucre of siphoning an economy with 4%
               | of their own GDP.
        
               | chitowneats wrote:
               | 4% is 4%. They are paying the expenditures to maintain
               | their military. Why would they not be looking for a
               | return on their investment? It's strange we're even
               | arguing about this given that their official position is
               | that they will invade in due time if Taiwan does not
               | unconditionally surrender.
               | 
               | https://www.washingtonpost.com/world/asia_pacific/china-
               | taiw...
               | 
               | "In its annual work report this year, the Chinese
               | government removed the word "peaceful" from long-standing
               | references to "reunification" with Taiwan."
        
               | xtian wrote:
               | Their official position is that they will invade _if any
               | of a few specific things occur._ And China 's military
               | spending is less than 4% of their GDP last I checked.
               | That seems pretty good to me given all the geopolitical
               | aggression they're receiving from the country that makes
               | up 38% of global military spending.
        
               | chitowneats wrote:
               | The U.S. guaranteeing the independence of a free
               | democracy is not "geopolitical aggression". Claiming
               | sovereignty over land you have not controlled for an
               | entire human lifetime quite certainly is. I'll end my
               | participation in this discussion with a quote from the
               | Taiwanese:
               | 
               | "We fill fight a war if we need to fight a war, and if we
               | need to defend ourselves to the very last day, then we
               | will defend ourselves to the very last day"
               | 
               | https://www.businessinsider.com/taiwan-warns-fight-to-
               | end-co...
        
               | f6v wrote:
               | > The U.S. guaranteeing the independence of a free
               | democracy is not "geopolitical aggression".
               | 
               | This is a naive view of geopolitics. Check out where
               | Kurds ended up by counting on the US.
        
               | chitowneats wrote:
               | I never said the U.S. was likely to uphold their promise
               | to prevent an invasion. The U.S. is however providing the
               | Taiwanese with advanced military equipment. And their
               | threat of defending Taiwan, no matter how hollow you
               | judge it to be, is perhaps the only reason Taiwan is
               | still an independent nation in 2021.
        
               | boomboomsubban wrote:
               | >The U.S. guaranteeing the independence of a free
               | democracy is not "geopolitical aggression".
               | 
               | So it was geopolitical aggression for the 40+ years
               | Taiwan couldn't even pretend to be a free democracy? I
               | don't understand how the internal government can be the
               | decider over whether it's aggressive.
        
               | AnimalMuppet wrote:
               | > So it was geopolitical aggression for the 40+ years
               | Taiwan couldn't even pretend to be a free democracy?
               | 
               | Yes, it was still aggression. The US opposed it then
               | under the grounds of "containing Communism" rather than
               | "defending democracy".
               | 
               | > I don't understand how the internal government can be
               | the decider over whether it's aggressive.
               | 
               |  _If you invade somewhere to take it over against the
               | wishes of the locals, that 's aggressive._ How is that
               | hard to understand?
        
               | boomboomsubban wrote:
               | >If you invade somewhere to take it over against the
               | wishes of the locals, that's aggressive. How is that hard
               | to understand?
               | 
               | I have no idea what part of my post made it seem like I
               | wouldn't find an invasion aggressive, it clearly would
               | be. I wasn't discussing an invasion at all.
        
               | AnimalMuppet wrote:
               | Then I clearly misunderstood this line:
               | 
               | > I don't understand how the internal government can be
               | the decider over whether it's aggressive.
               | 
               | Would you explain what you meant by it?
               | 
               | (And, my apologies for the yelling. I in fact thought
               | that you were saying that an invasion would not be
               | aggression, which... yeah. We both agree that such an
               | idea is wrong.
        
               | wonnage wrote:
               | Taiwan was run by a military dictatorship until 1986
               | 
               | *edit: 1986 was a long time ago, but the point is that
               | the KMT was a corrupt and unpopular government which lost
               | to the Communists, but the US held its nose and propped
               | it up for 30+ years until Nixon needed a counterweight to
               | the USSR and opened relations with China.
        
               | Leary wrote:
               | Which international law would China be violating by
               | invading Taiwan?
        
               | throwaway5752 wrote:
               | That would be https://www.un.org/en/about-us/un-
               | charter/chapter-7 if I'm not mistaken. It is neither
               | authorized or self-defense.
        
               | randomopining wrote:
               | Taiwan fits all criteria under international law for a
               | country. Plus CCP would kill hundreds of thousands or
               | millions during a forceful invasion of Taiwan.
               | 
               | Laws always have loopholes. It's clear that the CCP would
               | be doing something evil by attacking a peaceful island
               | nation. They want control.
        
               | f6v wrote:
               | > Plus CCP would kill hundreds of thousands or millions
               | during a forceful invasion of Taiwan.
               | 
               | > They want control.
               | 
               | Does not add up. Who're they going to control if they
               | kill millions? I mean, why do they even have to start a
               | military offensive when they can eventually outcompete
               | Taiwan? Just think how many top-rated universities China
               | has.
        
               | theandrewbailey wrote:
               | > Does not add up. Who're they going to control if they
               | kill millions?
               | 
               | Their citizens on the mainland. The CCP believes that if
               | they don't look good, their days are numbered and
               | revolution will be inevitable.
        
               | xtian wrote:
               | A survey conducted by the Harvard Kennedy School found
               | that satisfaction with the central government in China
               | rose from 86.1% in 2003 to 93.1% in 2016:
               | https://ash.harvard.edu/publications/understanding-ccp-
               | resil...
               | 
               | Is the US government's abysmal approval rating by
               | comparison a sign of our free thinking and freedom, or do
               | you think we'll have a revolution here soon?
        
               | liuliu wrote:
               | Because the people who answer the survey cannot freely
               | express their mind, otherwise another mysterious group of
               | people will start to kill them and their families.
               | Everyone knows CCP controls these assassins through their
               | seat at the High Table. Free tip: you can hide inside the
               | Continental Hotel where these assassins cannot kill you
               | on that ground.
        
               | chitowneats wrote:
               | This is laughable. Chinese citizens are required to
               | approve of their government, lest they run afoul of the
               | national social credit system. That the study was
               | conducted by a Western organization is irrelevant.
               | Chinese citizens know that their communications with the
               | West are not private, and perhaps even especially subject
               | to monitoring and intrusion from their government.
               | 
               | Edit: I usually don't call out blatant CCP astroturfing
               | on this site. But I want to draw everyone's attention to
               | the video that u/xtian just shared in the comment below.
               | It's clearly Chinese Communist Party propaganda. It's
               | tagged #serpentza and #laowhy86 because those are the two
               | most famous Western streamers who have lived in China for
               | decades. The CCP specifically targets people who watch
               | their videos for counter programming. I'm done
               | interacting with this "person", but will respond to
               | comments from others.
               | 
               | Check out serpentza's youtube for the truth about China:
               | 
               | https://www.youtube.com/channel/UCl7mAGnY4jh4Ps8rhhh8XZg
        
               | xtian wrote:
               | Yeah true the only way to know their real interests is to
               | listen to the West. That's why when native Chinese people
               | say the social credit system doesn't exist I call them
               | liars. https://www.youtube.com/watch?v=KaPvnGhbj9A
               | 
               | Edit: chitowneats, if you don't believe I'm a real person
               | message me on Keybase. We can discuss whatever you'd
               | like. Or just keep believing it's impossible for any real
               | person to have political views that fall outside the
               | boundaries set by NATO propaganda.
        
               | chitowneats wrote:
               | Anyone here with any technical literacy knows that the
               | fact that you have a keybase account, and associated
               | pseudonym, does not prove anything.
               | 
               | Edit: Response to the comment below. Being rate limited.
               | 
               | The West is past the point of naively believing that the
               | CCP does not have multi-decade information ops being
               | conducted against their governments and citizenry.
               | 
               | Also, that was _exactly_ your assertion. What would be
               | the point of bringing up your irrelevant keybase account
               | if it was not an attempt to mislead me and others on this
               | site?
        
               | xtian wrote:
               | That wasn't my assertion, but I could tell you my life
               | story, send you a picture of my neighborhood, etc. I want
               | you to believe, brother. You think the CPC made a HN
               | account to post about jQuery 10 years ago just so they
               | could eventually correct your lukewarm takes on Taiwan?
               | 
               | Response to your edit: Is the CPC in the room with you
               | now, chitowneats?
        
               | [deleted]
        
               | emptysongglass wrote:
               | It's about more than the population of Taiwan or the
               | strategic importance of its chips: it means control of
               | the South Chinese Sea. Between the US Navy and Taiwan's
               | alliance, China's broader ambitions for economic and
               | military control of the region are stymied.
        
               | AnimalMuppet wrote:
               | They're going to remain in control of the mainland
               | population, by giving them a big patriotic victory. (And
               | by delivering on what they said, over and over, that they
               | were going to do.)
        
               | luckylion wrote:
               | > Taiwan fits all criteria under international law for a
               | country.
               | 
               | Taiwan claims that they're not separate from China. Their
               | disagreement is over who should be in charge, not whether
               | they're the same country currently engaged in a power
               | struggle between regions.
        
               | randomopining wrote:
               | Yeah because if they claimed they were separate they
               | would cross the CCP's "red line".
               | 
               | The Taiwan populace doesn't want to take over the
               | mainland.
               | 
               | There's literally no way you can spin this that makes
               | sense besides the CCP wants control of a physical island
               | to push out the US/Japan.
        
               | AnimalMuppet wrote:
               | Sure, they claim that. Try traveling from one to the
               | other (either direction) without crossing border control.
               | Or, try to find the common point of authority in the
               | command structures of their respective militaries.
               | They're two countries, no matter what they say they are.
        
               | sudosysgen wrote:
               | You're confusing two things. The context of the
               | discussion was International Law. You're talking about
               | practical reality which is almost orthogonal to
               | international law.
        
               | f6v wrote:
               | > Top brass in the U.S. military is saying an invasion is
               | likely within the decade
               | 
               | So you're saying if China/Russia/Iran did not have any
               | plans whatsoever, the US generals would just say
               | "Alrighty, you can now defund us!". Those guys will cry
               | wolf any day to get those sweet $billions.
        
               | FpUser wrote:
               | >"The international law"
               | 
               | The law is only as good as there is an entity capable and
               | willing to impartially enforce it. Meanwhile as it stands
               | now any reasonably capable country can show big fat
               | middle finger to that concept which makes it but a
               | mockery.
        
               | f6v wrote:
               | Nuclear weapons + huge economy = I do whatever I want.
        
               | [deleted]
        
       | ricksunny wrote:
       | I think the recruitment ban policy is super-smart given the
       | context.
        
       | Apocryphon wrote:
       | Nice post about how Taiwan's work environment is sadly missing
       | its potential:
       | 
       | https://news.ycombinator.com/item?id=19492995
       | 
       | > komali2 on March 26, 2019 | parent | un-favorite | on: Google
       | will open a new office complex and add hund...
       | 
       | >>Last year, the project trained about 5,000 students in AI
       | technology and 50,000 digital marketers.
       | 
       | >I feel like Taiwan represents a talent opportunity like no
       | other. I dream of starting an engineering company there that is
       | literally a clone of some upcoming business model, and doing
       | nothing but capping the work week at 40 hours and guaranteeing 4
       | weeks vacation. I could snipe the best talent on hand in the
       | country, which is at the very least equal to some of the best
       | silicon valley has to offer, at nearly half the rates. Lord
       | forbid we target foreign contracts and the company can pay near
       | US rates. I'd pilfer everyone's engineering department ;)
       | 
       | >Overworked, underpaid, extremely competent was my experience of
       | Taiwanese engineering. Google is good to step up in Taiwan - I
       | believe it will pay dividends for them. I wonder what the Google
       | work culture and salaries are like for their Taipei 101 office
       | engineers? Last I checked it was about 2,000$/month for entry
       | level.
        
       | seriousblap wrote:
       | From a Taiwan vantage point, is it feasible to ban domestic
       | workers watching China located jobs via Linkedin or other such
       | platforms?
        
       | yongjik wrote:
       | Only ban recruiters? Amateurs. South Korea used to charge those
       | moving employees with industrial espionage. (Maybe it still does,
       | but at least I didn't hear about these "incidents" in recent
       | years, so I'm cautiously hopeful.)
        
         | cigaser wrote:
         | North Korea shoots employees who try to move.
        
           | [deleted]
        
       | MangoCoffee wrote:
       | 1. TSMC pay its employees well compare to other companies in
       | Taiwan. they are also know for paying big yearly bonus.
       | 
       | 2. this news is interesting. i'm guessing we have reach to the
       | point where Taiwan have to use this tactic to prevent brain
       | drain. it also shown us how aggressive China is to make Made in
       | China 2025, a reality. semis chip is the biggest China import.
       | 
       | 3. there are several news about China poaching TSMC employees
       | before. this is really going to test TSMC, from what i understand
       | their high end node production process is componentized and not
       | one person know the whole process from start to end. we'll see if
       | that is true.
        
       | swiley wrote:
       | Competing with China seems like a pretty low bar: imagine
       | google's ban happy AI except that instead of banning you it takes
       | your passport, cuts of government services, and potentially
       | throws you in prison to have your organs harvested.
       | 
       | If you're actually losing employees to that you have a _serious_
       | moral /retention/communication/pay problem.
        
       | fatjokes wrote:
       | "We're free market!" ... "Whoa whoa, not like that." Seriously
       | just pay these people more.
        
         | danuker wrote:
         | Agree. TSMC is of strategic national importance. The people
         | should be paid for the role.
        
       | Leary wrote:
       | So.. TSMC can't post job postings in Mainland China but what's to
       | stop engineers from being hired to SMIC?
        
         | xyzzy21 wrote:
         | 1. Taiwan barring its citizens from taking such jobs - that's
         | what the story is - did you even read it??
         | 
         | 2. Any person who left TSMC for SMIC is blacklisted now.
         | They'll never work in Hsinchu et al. again.
        
           | hollerith wrote:
           | >Taiwan barring its citizens from taking such jobs - that's
           | what the story is - did you even read it?
           | 
           | I just read the OP and found nothing about barring citizens
           | from taking jobs.
        
           | Leary wrote:
           | Where in the article does it say Taiwan is barring its
           | citizens from taking such jobs. It's simply telling the
           | staffing companies to remove such postings. The engineers
           | could still apply directly.
        
         | east2west wrote:
         | Believe it or not, TSMC owns and operates a fab in Mainland
         | China, a 28nm one. So I imagine it posts quite a bit of job
         | posting in China. It has recently applied for fab expansion in
         | China, asking for some of that sweet, sweet free money CCP is
         | doling out.
        
       | jlduan wrote:
       | I guess current TSMC employees can not leverage other job offers
       | (most of them are from mainland China) to increase their salaries
       | anymore. Essentially, the government is helping TSMC to keep the
       | labor cost low.
        
         | jasonwatkinspdx wrote:
         | Not a good take. TSMC is known for paying well above average in
         | the industry, as well as having an internal culture of pretty
         | fierce loyalty. On top of that, fab is very highly automated.
         | Even though you need a lot of very smart engineers, head count
         | is still very low compared to the value the fab creates.
         | Suppressing labor prices is pretty low down the list of
         | priorities for this industry. Costs are utterly dominated by
         | capital costs to build a new generation of your fab every 2
         | years.
        
           | jlduan wrote:
           | 1. if employees are paid higher than average, why does TSMC
           | need government's very targeted policy help. 2. the need to
           | update the costly fab constantly might be the motivation to
           | further squeeze employees. TSMC needs to invest even more to
           | compete with US and China.
        
             | jasonwatkinspdx wrote:
             | Because recruitment from TSMC to China is not an ordinary
             | labor market. TSMC vs SMIC has huge geopolitical
             | implications for Taiwan, China, and the world at large
             | even. Most companies don't have "CCP's intelligence
             | services are going to spend millions to entice, bribe, or
             | coerce our key engineers to jump ship" as part of their
             | recruiting concerns.
             | 
             | As for point 2, TSMC's financials are public. They spend
             | ~30 million a year on payroll. On the other hand they
             | expect to invest a total of 100 billion into their next
             | generation fab over the next 3 years. The idea that penny
             | pinching salary is what enables their capital spend is
             | hilariously out of touch with the scale of the relative
             | expenses.
        
               | jlduan wrote:
               | I don't think only SMIC recruitment is banned based on
               | the article. Could you give an example what "CPP
               | intelligence services" are doing to "entice, bribe, or
               | coerce our key engineers"? Politicizing all the
               | recrements does not seem fair for employees. Basically,
               | TSMC is trusting their employees, is that what you are
               | saying?
               | 
               | This could be ONCE IN A LIFETIME career jump, using
               | national security as a reason to deny employees' career
               | development and salaries negotiation doesn't seem fair.
        
               | jlduan wrote:
               | based on the article, it is not just semiconductor
               | industry, it is ALL job listing. Wow, kinda of extreme.
        
             | godelski wrote:
             | Because China is offering 3x the pay. Obviously this isn't
             | sustainable. But China can pay higher (through government
             | help) that disrupts things. The pay is so high no company
             | could sustain business. It already creates a situation
             | where competition is out the window.
             | 
             | The US and China should invest in their own fabs and become
             | less dependent upon TSMC (which is happening and even if
             | both dumped enormous funds into this it would take quite a
             | long time to overtake TSMC. Which is why China is doing
             | this in the first place).
        
               | fnord77 wrote:
               | > Because China is offering 3x the pay. Obviously this
               | isn't sustainable.
               | 
               | in the software world, I've seen this happen and the
               | salaries never get rolled back. So it will have to be
               | sustainable...
        
               | godelski wrote:
               | Sure, but those company's extra cash flow isn't coming
               | from the government, they are coming from capital
               | investors. At the end of the day these two have
               | completely different motives. A capital investor expects
               | to get capital back, where a government may not.
               | Motivation could be to harm another country, a long term
               | (20+ years) technological investment, or many other
               | things.
               | 
               | Considering the geopolitical situation we could interpret
               | this as an attack and defense (economic warfare). TSMC is
               | Taiwan's most important industry and is one of the
               | reasons the West helps protect them (besides the military
               | advantage of location). China has long said that Taiwan
               | is not a sovereign nation and rather a rebellious
               | territory that is acting illegally. What we're seeing is
               | part of a war going on, not two companies competing (TSMC
               | vs SMIC).
        
           | varispeed wrote:
           | The problem is that the workers in the industry are severely
           | underpaid. Even the "above average" pay may actually be way
           | below what the workers should be getting. Let's say they have
           | 50000 employees and for simplicity let's look at their 17
           | billion profit last year. Based on industry standard margin
           | of 30%, each employee should be getting 100k USD extra a year
           | on top of what they already make. That not adjusted for the
           | role - some should be getting 1 million and others 10k. It's
           | a pure exploitation however you dress it.
        
       | jollybean wrote:
       | This seems odd, but it's also unreasonable that a small economy
       | would be able to defend itself from competition from a large
       | state actor.
       | 
       | In 'free trade' deals, the big fear is you 'open up' to
       | competition while the other nation uses massive government money
       | to gut your industry, wipe you out and take over. That's why the
       | legal language on Free Trade surrounds government intervention
       | and subsidies.
       | 
       | China is huge and this is a 'primary strategic concern' for them,
       | they will pay anything for the individuals they need, and of
       | course, to give Taiwan a black eye.
       | 
       | This is literally a form of economic warfare we are seeing with a
       | large country trying to wipe out a strategic industry in a
       | smaller country.
       | 
       | So the action by Taiwan is understandable, even if it seems odd
       | to use in the West.
        
       | daodedickinson wrote:
       | Seems like too little too late.
        
       | zachguo wrote:
       | This is meaningless. Taiwanese can still access job posting sites
       | or be contacted by recruiters from Mainland China. There's no
       | language barrier and they can simply buy a flight ticket to
       | Shanghai and start working wherever they want with full Chinese
       | citizenship.
       | 
       | The brain drain is serious and I don't see how it can be solved
       | unless Taiwan can offer competitive salaries against first-tier
       | cities in the mainland, 10% of Taiwanese population is now living
       | and working in the mainland.
        
         | necrotic_comp wrote:
         | Taiwan isn't part of China. Using the term "mainland" is
         | extremely loaded.
        
           | dathinab wrote:
           | Saying Taiwan isn't part of China isn't right, but neither is
           | saying it is part of China. Similar the term mainland while
           | maybe not liked by all Taiwan wouldn't necessary be that
           | wrong either on technical terms.
           | 
           | Because things are complicate ...
           | 
           | Both Taiwan and China are "China".
           | 
           | Basically China/CCP claims the Taiwanese government are
           | rebels, and the Taiwanese land belongs to China.
           | 
           | But Taiwan is also claiming that the CCP and co. are rebels
           | and the Chinese/CCP land belongs to them.
           | 
           | I.e. both claim to "be" China.
           | 
           | So the reason Taiwan is called Taiwan and not China is
           | because it's mainly limited to the island of Taiwan.
           | 
           | But this also means that using e.g. China/Mainland and
           | China/Taiwan isn't wrong either.
           | 
           | In the end from a Taiwan historic point of few China/Mainland
           | is the mainland they have lost.
           | 
           | I myself found it annoying that many western countries don't
           | officially recognize Taiwan.
           | 
           | Until I learned about that fact, which explains a lot of
           | things.
           | 
           | The relevant part is that Taiwan officially kinda sees
           | themself as part of the historic/demographic/non CCP defined
           | China, but NOT as part of the "political" China controlled by
           | the CCP.
           | 
           | Naturally due to years separation both have developed in
           | different directions and from a external point of few both
           | China and Taiwan are separate countries with separate
           | governments, land, politics etc.
           | 
           | Anyway I'm not a China/Taiwan expert, I hope I got things
           | more or less right.
           | 
           | I guess the main takeaway is that the relationship between
           | Taiwan and China is much more complicated than many people
           | from the other side of the world believe it is.
           | 
           | I personally thought for a long time it basically "just"
           | Taiwan is a country split of from china which aims to be
           | independent from China and go it's own way but is suppressed
           | by China but also somewhat protected by external forces
           | mainly the US. Well I was wrong and things are more
           | complicated than that.
        
           | filoleg wrote:
           | I think they used "mainland" here, so that it is
           | differentiated from something like Hong Kong. And in this
           | case, that differentiation actually matters and helps the
           | context.
           | 
           | Tl;dr: the parent comment didn't use "mainland" to imply that
           | Taiwan is a part of China. They used it to say "contacted by
           | recruiters from Mainland China [as opposed to recruiters from
           | HK]"
        
           | Y_Y wrote:
           | Ya exactly, China is part of Taiwan!
           | 
           | But seriously, this is a standard non-politicised term.
        
           | hi5eyes wrote:
           | I think if you were to talk to hkers or taiwanese you would
           | know that the term "mainland" is pretty well understood
        
           | iso8859-1 wrote:
           | Taiwan is an island in a country formally known as "Republic
           | of China". So yes, it is China. The mainland is occupied by
           | communist rebels, but it also belongs to the Republic of
           | China. Happy to help!
        
       | belval wrote:
       | I understand the why, but I feel like they could also ask TSMC to
       | pay their workers more.
       | 
       | Say India did the same for software engineers leaving for the US,
       | we'd see it as government overreach.
        
         | sularin wrote:
         | China is offering triple the salary to those people.It's
         | impossible to keep up for a country as small as Taiwan. The end
         | goal for China is not to immediately outcompete TSMC but make
         | Taiwan beg to be integrated into China.
        
           | varispeed wrote:
           | TSMC had 17 billion USD profit last year, right? How come
           | they are unable to triple or in fact pay 10 times they
           | already pay? It's simple greed in my book. It's always CEO
           | cry that they cannot find talent while flying a private jet
           | and offering 5 digit salary.
        
           | azurezyq wrote:
           | Also note that 3x is not only for TSMC employees. Even for
           | fresh CS graduates, China mainland pays way more than taiwan.
           | 
           | https://www.payscale.com/research/CN/Job=Software_Engineer/S.
           | ..
           | 
           | https://www.payscale.com/research/TW/Job=Software_Engineer/S.
           | ..
           | 
           | It's about 1/3 more, if we only consider big cities like
           | Beijing / Shanghai / Taipei, the difference is just larger.
           | SWE is almost the best paid job kind there. Hardware is
           | similar.
           | 
           | I have to say the best way is to pay more. They deserve it.
           | Just blaming the other side doesn't help.
        
           | toomuchtodo wrote:
           | Very similar to how the US used military spending to cause
           | the USSR to exhaust its resources.
        
             | jonathankoren wrote:
             | That's a popular thought in the US, in particular among
             | political activists, but from what I understand, economists
             | dismiss Reagan's unprecedented peacetime deficit spending
             | on the military, and rather point to internal
             | inefficiencies in the Soviet economy, and critically the
             | global price of oil.
             | 
             | Like Russia today, the Soviet Union's economy was centered
             | on exports of raw materials, in particular oil and gas.
             | Wells were needing to be recapitalized, but with low prices
             | the money wasn't available to revitalize the economic
             | engine of the country. Luckily for the Soviet Union, the
             | oil crises of the 1970s jacked up the price of oil, thus
             | allowing them to stave off collapse until prices fell back
             | to their historical average. In other words, if it wasn't
             | for OPEC, the Soviet Union would have collapsed under Nixon
             | or Carter.
             | 
             | https://www.aei.org/wp-
             | content/uploads/2011/10/20070419_Gaid...
             | 
             | https://www.rbth.com/history/331825-saudi-arabia-oil-
             | crisis-...
             | 
             | https://carnegieendowment.org/2017/03/29/formation-and-
             | evolu...
        
               | echelon wrote:
               | What's your take on the future of China, Taiwan, Asia,
               | and the US?
        
               | MangoCoffee wrote:
               | China - https://www.youtube.com/watch?v=KY_zsc0wf1Y
               | 
               | I am not an expert on geopolitics and when it come to
               | CCP's data. I'll always assumed false/fake then verify
               | but one thing is real is the One Child Policy. Xi want
               | dual circulation economy but I highly doubt that's going
               | to happen with its population decline. China going to
               | deal with labors, support older population, long term
               | impact on economy...etc.
               | 
               | if Peter is correct, China is becoming another old folks
               | home like Japan. China's birth rate is already
               | approaching Japan's level.
        
               | toomuchtodo wrote:
               | Africa and India have young populations, they'll be the
               | powerhouses of the second half of this century.
        
               | eloff wrote:
               | So if I remember correctly Soviet military spending
               | reached 10% of their GDP which was unsustainable.
               | 
               | I wonder if that was due to GDP falling with weak oil
               | prices, or just rising military budget with a stagnant
               | economy.
        
               | jonathankoren wrote:
               | Probably all of the above.
               | 
               | Fun fact: No one knows how percentage of GDP the Soviets
               | were spending on their military, but 10% is the _low_
               | estimate. (See second figure.)
               | 
               | The fifth figure should put to rest the idea that the
               | Soviets tried to meet an increase in US military spending
               | in the 80s. They didn't. In fact, the president exact
               | opposite is true. The US increased spending due to an
               | increase by the Soviets in the mid 1970s. Soviet spending
               | didn't really increase at all in the 1980s.
               | 
               | https://nintil.com/the-soviet-union-military-spending/
        
         | cdumler wrote:
         | But, that's now how capitalism works. Capitalism is workers
         | must compete for jobs, services and goods. Capitalism for
         | companies and rich are how to buy off the right people and laws
         | to prevent competition.
         | 
         | I remember in business school how it drilled into us that there
         | are only two important numbers in a company. The price of your
         | product, and the cost of your product. "You can only dictate
         | your cost of your product because your market dictates what you
         | can sell it for." Every time I hear things like "we can't find
         | enough people" or "yeah, but then we'll just pass it along in
         | our cost to customers," I know how much we don't have
         | capitalism.
        
           | sularin wrote:
           | It's a bit more nuanced than that.For Taiwan it's a matter of
           | survival not a question of money.You literally cant compete
           | with a behemoth like China.
        
           | belval wrote:
           | From your comment I am not sure that I understand if you
           | agree of disagree with the move.
           | 
           | Capitalism here is not the issue. If China pays more they get
           | the workers. That's capitalism as its core. If TSMC wants to
           | retain their workers they have to dig in their 40% profit
           | margins and increase salaries to compete for talent. If they
           | want to increase the price of their chips to account for that
           | payroll increase that will make Samsung (or whoever else)
           | more competitive and that's capitalism as well.
           | 
           | > Every time I hear things like "we can't find enough people"
           | or "yeah, but then we'll just pass it along in our cost to
           | customers," I know how much we don't have capitalism.
           | 
           | I agree and it makes me angry, individual freedoms are and
           | should stay a thing. If you can't pay your employees a salary
           | that makes them want to work for you, they are not the
           | problem and your competitors are not the problem.
        
             | cdumler wrote:
             | > If TSMC wants to retain their workers they have to dig in
             | their 40% profit margins and increase salaries to compete
             | for talent.
             | 
             | I agree completely. I was trying to comment on the Western
             | narrative about capitalism: "Capitalism is all fine and
             | dandy unless it impacts me negatively."
        
           | AnimalMuppet wrote:
           | If you're competing with _the government of China_ , then
           | _capitalism_ isn 't really the rules of the competition.
        
           | toast0 wrote:
           | The market doesn't really dictate your sales price. The
           | market may dictate the price vs sales curve.
           | 
           | If you raise prices, usually unit sales will fall (although,
           | not always) and sometimes there's a big cliff as you approach
           | (or surpass) competitors' prices.
        
             | Retric wrote:
             | Try and increase prices by 1,000,000,000x and say the
             | market doesn't set prices. Markets give you wiggle room,
             | but maximum profit is the goal not simply moving some
             | units.
        
         | xyzzy21 wrote:
         | TSMC pays very well compared to other companies in the same
         | market. I'm guessing you are hearing from people who've never
         | worked for UMC or PowerChip!
         | 
         | Of course, the other fun fact: ANY TSMC employees who went to
         | China will never get jobs in Hsinchu et al. ever again. One-way
         | decision only. Burned bridge.
        
           | varispeed wrote:
           | > TSMC pays very well
           | 
           | Many big companies indeed pay relatively well in comparison
           | to other professions, but workers are heavily underpaid. You
           | can't justify the fact that companies have multi-billion
           | profits and they pay "market rate" salaries at the same time.
           | This is exploitation of workers, but because the amount they
           | are being paid seems to be big, nobody seems to be
           | protesting. Most tech workers should be earning in seven
           | digits.
        
             | jsmcgd wrote:
             | > Most tech workers should be earning in seven digits
             | 
             | According to which metric?
        
               | ev1 wrote:
               | 1 million Taiwan dollars is 30k USD
        
             | fossuser wrote:
             | I think it's more akin to sanctions on doing business in
             | Iran.
             | 
             | The CCP is a direct hostile threat to Taiwan, I can
             | understand why they're doing this.
        
               | luckylion wrote:
               | Wouldn't they do the same if it was France poaching them?
               | The language and cultural barrier make it harder for
               | European or American countries to recruit them, but I
               | have no doubt they'd react similarly if they saw
               | significant numbers leaving for Europe.
        
               | fossuser wrote:
               | They might and I'd argue that would be wrong.
               | 
               | In the case of the CCP though, I understand it.
        
               | billyzs wrote:
               | why the double standard?
        
               | liuliu wrote:
               | Then just do a sanction on business with mainland like
               | U.S. did with Iran. As it is, these are very targeted
               | moves. Taiwan to decoupling from China would only be good
               | for them.
        
           | newacct583 wrote:
           | UMC and PowerChip are not remotely "in the same market",
           | unless you define market to mean "China".
           | 
           | TSMC competes with Samsung and Intel. If they don't
           | compensate their engineers accordingly they can expect to
           | lose them.
        
           | belval wrote:
           | TSMC here is really a placeholder for Taiwanese companies.
        
           | shalmanese wrote:
           | What? No they don't. TSMC starting wages [1] for a Masters
           | degree candidate is $19,500 USD per year, for a bachelor's
           | degree is $13,000 USD per year. Their median salary is less
           | than $60K USD (which includes US engineers who are paid much
           | more).
           | 
           | They were finally shamed into a 20% above the board wage hike
           | last November [2] but before then, they went a solid 10 years
           | of 3 - 5% COL adjustments.
           | 
           | They might pay well compared to other Taiwanese semi
           | companies but that's only an indictment over how dismal the
           | Taiwanese employment situation is. They're not lacking money,
           | they're just cheap because the executive team culturally does
           | not believe in rewarding talent.
           | 
           | [1] https://www.taiwannews.com.tw/en/news/3925769 [2]
           | https://www.taiwannews.com.tw/en/news/4052667
        
         | bosswipe wrote:
         | The Chinese companies are owned or funded by the government,
         | they don't have to worry about profit. It is geopolitical
         | economic warfare. A company cannot compete against that without
         | government help.
        
         | ChemSpider wrote:
         | Yeah, but the key difference is that Taiwan is under direct
         | threat from China. Mr. Xi openly said that he will take back
         | Taiwan by force if necessary. Weakening the Taiwan
         | semiconductor industry is certainly part of this playbook, too.
         | 
         | Imagine if the US would consider India to be part of its
         | territory and asking for a "re-unification". I am sure that in
         | this case India would try to prevent key software engineers
         | from leaving, too. Actually, I am surprised that Taiwan has
         | done so little so far.
        
           | newacct583 wrote:
           | All that may be true, but the net effect of this policy is to
           | artificially depress wages of people working in Taiwan. Even
           | if one buys into the "existential threat" model, it seems
           | like forcing that burden onto the backs of your most
           | important competitive asset is... sort of horrifyingly
           | counterproductive.
        
             | ipnon wrote:
             | Presumably they would be poached to work in China and not
             | Taiwan.
        
               | newacct583 wrote:
               | That's the policy. But the _effect_ is that TSMC doesn 't
               | need to raise salaries to retain workers, they can rely
               | on the government to prevent the workers from being
               | recruited in the first place.
               | 
               | (edit: Can I say how amazingly hilarious it is watching
               | all these notionally free-marketeer libertarians who
               | believe in just compensation rush in to explain why it's
               | totally OK for the Taiwanese government to shamelessly
               | restrain trade as long as they're trying to stick it to
               | the PRC?)
        
               | donw wrote:
               | TSMC will always lose that bid against a hostile state
               | actor (the PRC) which can totally ignore market value in
               | pursuit of strategic goals.
        
               | fighterpilot wrote:
               | It doesn't _aritificially_ depress wages if China was
               | offering artificially high wages in the first place.
        
               | spaced-out wrote:
               | If these people really are critical to the survival and
               | future of your country, how can any wage be too high?
        
               | fighterpilot wrote:
               | You're thinking in absolutes. We would both agree that a
               | billion dollars a month is too high.
               | 
               | And I don't see how what you've said is related to what I
               | said, which was a critique of the idea that this move is
               | artificially depressing wages when allegedly it's an
               | attempt to stop poaching of key talent at artificially
               | high _non market_ rates.
        
               | spaced-out wrote:
               | >We would both agree that a billion dollars a month is
               | too high.
               | 
               | I would not necessarily agree. There are CEOs who make
               | around that amount, why shouldn't an engineer make that
               | much if they're equally important to the organization?
               | 
               | From what I could gather from Google, TSMC engineers make
               | far less than I do as a FAANG engineer, and TSMC posted a
               | ~$14 billion profit last year. If these employees are so
               | important to Taiwan's future, why can't they at least pay
               | them FAANG-level salaries? It's not that they don't have
               | the money.
        
               | elefanten wrote:
               | There are other places in the world Taiwanese talent can
               | work. And other sources of FDI in Taiwan that can create
               | wage competition -- see other comments about Google.
               | 
               | China is uniquely and specifically trying to destroy
               | Taiwan. The exception makes sense and doesn't have a
               | totalizing effect.
        
               | blackoil wrote:
               | This is kind of an anti-dumping measure by Taiwan.
        
               | threatofrain wrote:
               | Taiwanese workers may find their wages lowered due to
               | lack of China bidding on their salaries, but there's
               | still the rest of the world.
        
               | sudosysgen wrote:
               | The vast majority of the pressure comes from China.
        
           | viking1066 wrote:
           | Most Indians would be thrilled to become US citizens.
           | 
           | So this is not a good analogy.
        
       ___________________________________________________________________
       (page generated 2021-04-30 23:01 UTC)