Thursday, December 5, 2024

Taiwan Premier Pledges Action on Hiring of Chinese Sailors by State-Owned China Steel Express Corp.

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Taiwan Premier Addresses National Security Concerns Over Chinese Sailors at China Steel Express Corp.

Taiwan’s Premier Cho Jung-tai has pledged to tackle the issue of Chinese sailors working for China Steel Express Corp. (CSE), a subsidiary of the state-run China Steel Corp. (CSC), promising that the matter will be addressed “quickly, safely, and effectively.”

This statement came during a legislative hearing on Tuesday, where Democratic Progressive Party (DPP) Legislator Hung Sun-han raised concerns over the potential national security risks posed by the employment of Chinese nationals in Taiwan’s key shipping sector.


Concerns Over Chinese Nationals Employed by Taiwan’s CSE

At the hearing, Legislator Hung questioned the continued employment of nearly 20 percent of sailors at CSE as Chinese nationals. He expressed alarm that, in the event of rising tensions across the Taiwan Strait, these sailors could pose a national security threat to Taiwan.

CSE, which is a subsidiary of the state-owned China Steel Corp. (CSC), has vessels that primarily transport critical raw materials, including steel products, which are vital to Taiwan’s industrial economy. Hung pointed out that other state-run entities, such as Taiwan Power Co. and CPC Corp., have already made efforts to eliminate Chinese nationals from their shipping crews. He questioned why CSE had not taken similar measures.

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Hung’s concerns stemmed from the fact that China Steel Express Corp.’s operations involve the transportation of sensitive materials, which could be vulnerable to security breaches if Chinese sailors were privy to internal company operations.


Government Response: Pledges for Quick and Effective Action

In response, Minister of Economic Affairs Kuo Jyh-huei acknowledged the gravity of the situation, stating that it would be detrimental to Taiwan’s interests if sensitive operational information from CSE were leaked. He confirmed that the Ministry of Economic Affairs would engage in talks with both China Steel Corp. and CSE to develop a plan to address the issue and introduce improved management protocols for hiring foreign sailors.

Echoing Minister Kuo’s statement, Premier Cho Jung-tai assured that his office would oversee the implementation of these measures. He emphasized that the government would “logically, safely, and effectively” address the issue of foreign and Chinese sailors working for Taiwan’s key shipping enterprises.


The Role and Importance of China Steel Express Corp.

Founded in February 1996, China Steel Express Corp. (CSE) is a wholly-owned subsidiary of China Steel Corp. (CSC), based in Kaohsiung. With a paid-in capital of NT$4.225 billion (approximately US$130 million), CSE plays a crucial role in ensuring the smooth and uninterrupted supply of raw materials to the China Steel Group, which is Taiwan’s largest steel producer.

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CSE’s operations include shipping services for raw materials, ship chartering, and the management of its vessels. The company’s fleet is responsible for transporting steel products, crucial for Taiwan’s domestic and international trade. As part of its diversification strategy, CSE is also engaged in shipping agency services and broader operational management within the shipping industry.


Government and Legislative Efforts to Address the Issue

Legislator Hung has called on the Ministry of Economic Affairs to formulate a comprehensive plan within the next two months to eliminate national security concerns related to CSE’s hiring of Chinese sailors. His concern is based on the broader implications for Taiwan’s security in light of the strained political relationship with China.

In response, Premier Cho Jung-tai reassured the public that the government is committed to resolving this issue efficiently, with measures aimed at safeguarding both the national security and the operational integrity of Taiwan’s state-owned shipping companies.


Table: Key Facts About the China Steel Express Corp. (CSE)

TopicDetails
Company NameChina Steel Express Corp. (CSE)
EstablishedFebruary 1996
Parent CompanyChina Steel Corp. (CSC)
Paid-In CapitalNT$4.225 billion (US$130 million)
Primary OperationsShipping services for raw materials, ship chartering, and steel product transport
National Security ConcernsNearly 20% of the sailors employed by CSE are Chinese nationals
Proposed ActionsMinistry of Economic Affairs to draft a plan to address the security risks
Timeline for ActionA plan is expected to be drafted within two months

Frequently Asked Questions (FAQs)

1. Why are Chinese sailors employed by CSE a security concern?
Due to Taiwan’s geopolitical tensions with China, employing Chinese nationals in sensitive sectors, like shipping, could pose a national security risk. Chinese sailors might have access to sensitive operational information that could be harmful if leaked or exploited.

2. How many Chinese sailors are currently employed by CSE?
Approximately 20 percent of the sailors currently hired by China Steel Express Corp. are Chinese nationals.

3. What is the role of CSE in Taiwan’s economy?
CSE is a key player in ensuring the supply of raw materials, especially steel products, to China Steel Corp. (CSC), Taiwan’s largest steel producer. CSE is involved in shipping services, ship chartering, and operational management, which are vital for Taiwan’s industrial sector.

4. What actions is the government taking to address the issue?
The government, led by the Ministry of Economic Affairs, is working with China Steel Corp. and CSE to draft a plan to address the hiring of foreign sailors, with a focus on eliminating national security concerns. The Ministry aims to have a plan in place within the next two months.

5. Has any other state-owned company taken similar actions?
Yes, other state-owned companies, such as Taiwan Power Co. and CPC Corp., have already taken steps to eliminate Chinese sailors from their fleets due to national security concerns.

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