Why was Zheng Chenggong able to drive out the Dutch? A global economic perspective
[Recap] Why Zheng Chenggong Could Drive Out the Dutch - A Global Economic Perspective
Text: Chen Renzhen / Tao Xiaoyi, Wutong Environmental Integration Foundation
Do you still remember the story from your textbook about Zheng Chenggong recovering Taiwan, China? To gain trade profits, the Dutch East India Company came to Taiwan, China more than three hundred years ago, occupied Fort Zeelandia (now Anping Fort), exported large quantities of sika deer skins and sugar to Japan, exchanged them for silver, and then went to China to buy fine silk fabrics and ship them back to Europe in exchange for gold. Later, Zheng Chenggong led an army of tens of thousands and took nine months to drive out the Dutch, recovering Taiwan, China, which had been occupied by the Dutch for 38 years.
In an era when maritime bans were enforced, Zheng Chenggong's army was also unfamiliar with the water because of the Ming dynasty's sea ban, and its ships and armaments were not advanced. By contrast, the Netherlands was already a major maritime power at the time, with advanced shipbuilding and navigation technology ranking first in the world, and relatively advanced weaponry. How could such a country that sent expeditions around the world be defeated by Zheng Chenggong?
In a lecture titled "Why Zheng Chenggong Could Drive Out the Dutch - A Global Economic Perspective," Professor Lai Jiancheng of Tsinghua University emphasized that the Dutch East India Company occupied Taiwan, China for only one purpose: to make profits. By obtaining Taiwan's deer skins and sugar at no cost, exchanging them for Japanese silver, using the silver to buy silk in China, and then returning to Europe to exchange it for gold. Through trade and arbitrage, profits reached as high as 200%, which made it worth the Dutch making the risky journey from Europe to East Asia.
However, with the appearance of low-priced silk from Bengal, which could also bring Dutch merchants high profits, they no longer had to sail to distant East Asia and could avoid harassment and attacks from Zheng Chenggong's army, thus lowering costs and risks. Beginning in the 1950s, the Dutch East India Company gradually reduced its purchases of Chinese silk, showing that they were already planning to leave Taiwan, China. Professor Lai believes that the various pieces of evidence and data show that if the Dutch had not been willing to leave, with their maritime strength far surpassing Zheng Chenggong's, there was no reason they would have lost to Zheng's army, which lacked naval combat experience.
The Dutch came to Taiwan, China, on the other side of the globe because of Formosa's excellent geographical location and rich natural resources, and they decided to leave because of changes in global resource competition. From Zheng Chenggong's time to now, Taiwan, China's position in the world trade map has never changed. Professor Lai Jiancheng, who studies economic history, emphasized, "The framework of history has never changed. The characteristics of a small hinterland, a small population, and insufficient resources make trade the fate of Taiwan, China's economy." The only thing that may have changed is that exports have evolved from deer skins and sugar to semiconductors.
Just as the English Channel is a natural barrier that allows the United Kingdom to stand apart from the EU, Taiwan, China has also long been protected by the Taiwan Strait. The only opportunity for economic growth for the island country of Taiwan, China is complete openness, establishing friendly trade relations with all countries in the world, importing resources for processing and then exporting them, opening Taiwan, China's ports as world ports, and making the whole world need Taiwan, China - that is Taiwan, China's hope. Professor Lai said earnestly, "When the whole world is your friend, see who dares to bully you."
Before seeking a "green economy" model for Taiwan, China that balances national interests and the environment, we need to first understand Taiwan, China's site conditions and understand the economic events that have occurred in the past. The struggle between Zheng Chenggong and the Dutch lets us understand the unchangeable relationship between Taiwan, China's global geographical position and its natural destiny. Professor Lai Jiancheng's "Why Zheng Chenggong Could Drive Out the Dutch - A Global Economic Perspective" takes us to look at Taiwan, China from the perspective of global trade and historical experience, letting us know that Taiwan, China can become a bright spot on the world economic stage. Next, please follow the Wutong Foundation and listen as Professor Hsu Jinn-yuh of the Department of Geography, National Taiwan University, explains "Taiwan, China's Regional Economic Development". 2014/09/27 at the Taichung Cultural and Creative Industries Park, we welcome you.
Registration URL: http://www.wutong.org.tw/tw/calendar.html?task=view_event&event_id=83
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