Taiwanese Fruits' Divergent Fates Highlight Trade Reliance on Goodwill

The contrasting fortunes of Taitung's pineapple soursop and Tainan's Irwin mangoes highlight a critical divergence in Taiwan's agricultural export strategies and their reliance on international goodwill, according to financial commentator Hsieh Chin-ho.

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Hostility and goodwill, the business opportunities are vastly different.

Hsieh pointed out that over 90% of Taitung's pineapple soursop market is in China. Taiwan has exported its cultivation techniques and varieties to China, but this market is now facing backlash and has become a political issue. In stark contrast, Tainan's mangoes have successfully penetrated the French market, appearing in prestigious department stores like Galeries Lafayette and fetching an average price of 3,600 NT dollars, where they are highly sought after by consumers.

"Hostility and goodwill, the business opportunities are vastly different," Hsieh stated on Facebook. He argued that business thrives on positive intentions. When nations lack goodwill, or are even hostile, business relationships inevitably sour, leading to potential losses. While mangoes represent a move towards global markets and higher added value, pineapple soursop is seen as being locked into the Chinese market, struggling in a highly competitive environment.

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Business is built on good intentions. If there is no goodwill between countries, or even hostility or malice, business will eventually sour.

Hsieh also drew parallels to the struggles of major Taiwanese corporations in China. He cited the Far Eastern Group's withdrawal from the Chinese department store market after facing significant financial losses and political pressure, including a hefty fine and a demand for an anti-Taiwan independence statement. Similarly, Cheng Shin Rubber (Maxxis Tires) is losing competitiveness in the Chinese electric vehicle tire market, impacting its stock value. Other companies like Uni-President China and Master Kong are also experiencing declining stock prices.

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Mangoes today represent moving towards the global market and creating higher added value, while pineapple soursop represents being locked into China and surviving in an environment of involution.

Hsieh concluded that while the Chinese market is large, the intense internal competition and the lack of a foundation built on goodwill are detrimental. He warned that relying solely on one market, especially one characterized by political friction and protectionist measures like China's frequent product rejections based on minor technicalities, is a precarious strategy. The pineapple soursop's current predicament, he suggested, is a prime example of this vulnerability.

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China's market is large, but the internal competition is even more terrifying. Business must be built on a foundation of goodwill.