‘Be Brave If Something Looks Worth Investing In’

TAIPEI, Taiwan – Allen Chen holds an MBA degree from Johns Hopkins University in Baltimore. He is a project director for the Taipei International Auto Parts & Accessories Show.

In a WardsAuto Q&A, the Taiwanese native, 32, speaks of the importance of the upcoming April 6-9 event, the Taiwan automotive industry and what he took away from his experience as an international student in the U.S.

He is the son of a commercial air-conditioning engineer and contractor in a country with a climate that can get hot. Here’s an edited version of the Q&A.    

WardsAuto: How important is the Taipei show?

Chen: Very. It’s the only international show here for accessory and parts in the auto industry. The others are car shows.

WardsAuto: The show’s importance might be accentuated by the fact that the Taiwan automotive industry sector is parts-centric, consisting mainly of parts suppliers. Give the 50,000-ft. view of it.

Chen: The industry here is not as strong in auto manufacturing compared with Japan and South Korea. Taiwan has a strong parts industry. Most of the companies are in the aftermarket and doing exports, because the Taiwan market itself is relatively small. Meanwhile, there are also some OEM companies serving as 1^st tier car makers worldwide.

We do competitive exports. Our products cost about 10% more than the ones produced in China, but we have better quality and management.    

WardsAuto: I’m not asking for a political statement. But there is a presidential election here in January. Big campaign issues are Taiwan’s relationship with mainland China and how close that relationship should be. The non-incumbent is ahead in the polls, and she advocates keeping Taiwan completely independent of China despite China’s dream of reunification.

It seems Taiwan, a functional democracy, does not want to get as close to China as China wants to get to Taiwan. The question is how does that affect business?

Chen: Wow. It is pretty complicated. My point is if you want to get into the China market to sell your products, do not discuss any political issues, including your political standpoint. Usually, Taiwan businesspeople know it is not wise to make such statements. Just focus on doing business.

WardsAuto: The recent Trans Pacific Trade Pact increases market access for affected nations. The U.S. and several Pacific-Rim countries are part of it. But Taiwan is not, essentially because of China. Does that hurt business here?

Chen: Taiwan would like to be a part of it. Not being part of it could affect our exports. There are still questions about the agreement. The attitude of the U.S. towards this really is important.

WardsAuto: What takeaways do you have from your education in America that might apply to Taiwan?

Chen: I didn’t know a lot of people from the U.S. until I went to school there. American businesspeople have a different mindset. They like taking risks. The Johns Hopkins MBA program encouraged us to take risks.

WardsAuto: But presumably risks with risk management?

Chen: Of course, you use analytical skills to assess risk. Manage the risk. But be brave if something analytically looks worth investing in. That could be my biggest U.S. takeaway.

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