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Viewing cable 07TAIPEI545, Another Taiwan Firm to Drop "China" from Name

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Reference ID Created Released Classification Origin
07TAIPEI545 2007-03-09 07:13 2011-08-23 00:00 UNCLASSIFIED American Institute Taiwan, Taipei
VZCZCXRO0559
RR RUEHCN RUEHGH RUEHVC
DE RUEHIN #0545 0680713
ZNR UUUUU ZZH
R 090713Z MAR 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 4383
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHOO/CHINA POSTS COLLECTIVE
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
UNCLAS TAIPEI 000545 
 
SIPDIS 
 
SIPDIS 
 
STATE PASS USTR 
STATE FOR EAP/ TC, EAP/EP 
COMMERCE FOR 3132/USFCS/OIO/EAP/WZARIT 
TREASURY FOR OASIA/LMOGHTADER 
USTR FOR STRATFORD, ALTBACH 
 
E.O. 12958: N/A 
TAGS: ECON PREL CH TW
SUBJECT: Another Taiwan Firm to Drop "China" from Name 
 
Ref: Taipei 335 
Taipei 325 
Taipei 308 
 
1. Summary: Another Taiwan firm has moved to drop references to 
China from its name.  China Steel follows China Petroleum, China 
Shipbuilding and Chunghwa Post, which all changed names last month. 
China Steel's situation is more complicated because it has been 
privatized, and the Taiwan authorities hold only 22.6 percent of its 
stock.  The decision to change the name of a privatized enterprise 
increases the likelihood Chunghwa Telecom and China Airlines could 
be future targets.  End summary. 
 
2. Following China Petroleum Corp., China Shipbuilding Corp. and 
Chunghwa Post Co. (now know as CPC, Taiwan; CSBC, Taiwan; and Taiwan 
Post Co., respectively), China Steel Corp has become the next target 
for "name rectification" to remove references to China.  In a visit 
to China Steel's headquarters on March 1, 2007, President Chen 
Shui-bian pointed out to China Steel Chairman Chiang Yao-chung that 
it took 8 days to change the name of Chiang Kai-Shek International 
Airport to Taoyuan International Airport, and several other 
enterprises had changed their names quickly and efficiently.  Chen 
reportedly hinted that if Chiang did not change China Steel's name 
soon, he might be replaced. 
 
3. China Steel took a first step toward a formal name change in 
early March by changing the sign at the front gate of its 
headquarters.  It had previously read China Steel in Chinese 
("Zhongguo Gangtie" in standard pinyin).  Now it reads "Zhong Gang," 
an ambiguous abbreviation that could also mean "Central Steel."  In 
addition, letterhead and signs within the firm's factories have also 
been changed to use the more ambiguous abbreviation.  China Steel 
reportedly wishes to maintain CSC in the English name and change the 
Chinese name to either "Taiwan Zhong Gang" or Central Steel 
("Zhongyang Gangtie"). 
 
4. China Steel's situation is more complicated than CPC, Taiwan; 
CSBC, Taiwan; or Taiwan Post beci@}QQ"]zlders.  Foreign investors own 33 percent 
of the firm's stock. 
 
5. The firm is supervised by the Ministry of Economic Affairs 
(MOEA).  MOEA Minister Steve Chen formally asked China Steel to 
begin the process of changing its name as soon as possible.  China 
Steel estimated the cost of changing its name at NT$1 billion (US$30 
million).  A board meeting has been scheduled for March 28 to 
discuss the issue.  However, the final decision cannot be formally 
approved until the next shareholders meeting in May. 
 
6. Comment: The decision to change the name of China Steel, a 
partially privatized enterprise, increases the likelihood Chunghwa 
Telecom and China Airlines could also be future targets. 
 
YOUNG