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Taiwan's State-Run Steel Giant Under Scrutiny Over Chinese Crew Security Risks

Synopsis: Taiwan's government launches investigation into CSC Corporation's subsidiary for employing 20% Chinese sailors, raising national security concerns amid potential Taiwan Strait tensions.
Thursday, November 21, 2024
CSC
Source : ContentFactory

The Taiwanese government has initiated a comprehensive investigation into the state-owned CSC Corporation following serious concerns raised about national security risks associated with its employment of Chinese sailors. The issue came to light during a recent parliamentary discussion about the 2025 central government budget, where lawmakers highlighted the potential vulnerabilities in the company's staffing practices.

Democratic Progressive Party Legislator Hung Sun-han brought attention to a striking contrast in employment practices among state enterprises. While Taiwan Power Company and CPC Corporation maintain a policy of not hiring Chinese sailors despite employing other foreign nationals, China Steel Express Corporation, a CSC subsidiary, maintains a workforce where 20% of its sailors are Chinese nationals. This disparity has triggered significant debate about security protocols in state-run enterprises.

National Security Bureau Director-General Tsai Ming-yen raised a critical concern regarding chain of command during potential crisis situations. The primary question revolves around whether Chinese crew members would remain loyal to their Taiwanese employer or follow directives from the Chinese government during a Taiwan Strait crisis. This uncertainty has prompted immediate attention from high-ranking government officials, including Economics Minister Kuo Jyh-huei and Premier Cho Jung-tai.

The government's response has been swift and decisive, with Premier Cho Jung-tai calling for the implementation of appropriate restrictions on foreign and Chinese staff employment within state-run enterprises. The focus is on establishing a balanced approach that maintains operational efficiency while safeguarding national security interests. The Ministry of Economic Affairs has been tasked with developing comprehensive guidelines to address these concerns.

Legislator Hung has emphasized that the goal is not immediate dismissal of current Chinese employees but rather a systematic approach to addressing the security concerns. He has requested the Ministry of Economic Affairs to present a detailed timetable within two months, outlining how they plan to tackle this sensitive issue while maintaining operational stability.

The situation has highlighted the complex relationship between economic operations and national security considerations in Taiwan's state-owned enterprises. Unlike other state-run companies that have already implemented strict hiring policies regarding Chinese nationals, CSE's current practices have come under scrutiny for potentially exposing critical infrastructure to security risks.

The case has broader implications for Taiwan's state-run enterprises and their employment policies, particularly in strategic sectors like transportation and energy. The government's handling of this situation could set important precedents for future policy decisions regarding foreign employment in sensitive industries, especially concerning workers from mainland China.