Chapter 398: The Responsible Bearer

Before getting on the plane, Li Xuan took the initiative to talk on the phone with the new Executive Yuan, who had just taken office in June this year, and gave President Yu a detailed account of the possible serious pollution problems of RCA's Taiwan Taoyuan General Plant, and expressed a sincere apology for himself and the ineffective supervision of the Eastern Group.

That's why the Executive Yuan held an emergency meeting at noon, at which the director of the Environmental Protection Agency was criticized by public name, and finally decided to set up a special investigation team headed by political councilor Zhan Minshan to deal with the RCA pollution incident.

The Taiwan-Gulf Executive Yuan consists of a president, a vice president, a secretary-general, and 5 to 7 political councilors. The rank of political councillor is half a level higher than that of ordinary ministers, and this shows how much attention the Taiwan authorities attach to this incident!

The Department of Health (DH) and the EPD then instructed Taiwan University to send a team of professors and experts to sample and analyze the soil and groundwater around RCA's Taoyuan plant. The groundwater samples around the Taoyuan General Plant were detected with various toxic and harmful substances, which exceeded the standard value by 1,000 times!

Even two kilometers away from the factory, the harmful substances in the groundwater samples exceeded the standard value by hundreds of times! This is no longer environmental pollution in a small area, but an ecological disaster that may affect dozens of square kilometers in the surrounding area!

Therefore, it is impossible to overstate the importance of this RCA pollution incident. Li Xuan naturally has to give an explanation for such a major mistake in RCA!

In a previous phone call with Dean Yu, he said that after the acquisition of RCA, the Oriental Group actually began to rectify RCA immediately. But control a market capitalization up to billions of dollars. Multinational companies with operations all over the world are by no means an easy task.

Eastern Group after completing the restructuring of RCA's North American business. It has just begun to carry out self-examination and self-correction of various overseas branches. Nick Sen, the former general manager of the Taiwan branch, was soon found to have some problems. And Nickerson sensed that something was wrong. He immediately submitted his resignation to the US headquarters.

Then he wanted to take the initiative to expose the long-standing illegal discharge of hazardous waste by RCA Taiwan to CBS TV, so as to stand on the moral high ground, so as to escape the company's follow-up accountability against him.

The illegal pollution problem of more than ten years before RCA has nothing to do with Li Xuan. The only thing he needs to explain to the Taiwanese authorities is why the Eastern Bloc has not been able to detect the problem in time a year after it acquired RCA.

Li Xuan's explanation is actually a bit far-fetched, but it has at least given the Taiwan authorities a step down! After the Taiwan authorities have a full understanding of the seriousness of the matter, their anger and dissatisfaction can be imagined! Soon after the release of the test report of the National Taiwan University. The former director of the Environmental Protection Agency was immediately suspended and will likely be prosecuted for dereliction of duty!

For the Taiwan authorities, how to deal with RCA is also a thorny issue. Before being acquired by the Eastern Group, RCA was itself a giant company with a market capitalization of up to NT$200 billion (US$5 billion).

In addition, RCA is one of the first U.S.-funded companies to start large-scale investment in Taiwan, and its Taiwan branch has contributed more than NT$10 billion in economic output every year.

The Taiwan branch of RCA has also been rated as a model foreign-funded enterprise by the government many times in a row, and it is a model of Sino-US (Taiwan-US) economic cooperation in the propaganda of the Taiwan authorities! But he slapped the Taiwan side hard!

However, the Taiwan authorities did not dare to slap it back, because although RCA had been acquired by the Hong Kong Oriental Group, its main body was still located in the United States and it paid taxes to the US government. U.S.-Protected U.S.-Owned Businesses!

The Taiwanese side had to consider the reaction of the American dad before dealing with the RCA company. In fact, shortly after RCA voluntarily reported the pollution incident to Taiwan's Environmental Protection Agency, the director of the U.S. office in Taipei called the Executive Yuan. expressed his concern about this incident.

In addition to the fact that RCA has a background in American capital, the Eastern Bloc behind it is also a Taiwanese authority. Factors that have to be carefully considered. Even putting aside Li Xuan's huge influence as the world's richest man, the Oriental Group alone has invested heavily in Hsinchu Science and Technology Park for several consecutive years. This will make the Taiwan authorities dare not act arbitrarily.

Taiwan is an important part of Li Xuan's vision of the mainland, Hong Kong and Taipei's triangular industrial planning. For this reason, in the past two or three years, the Oriental Group has not only catered to the industrial upgrading and transformation policy of the Taiwan authorities, and has continuously invested heavily in the construction of semiconductor wafer factories and other high-tech factories in Hsinchu and other places, but also the influence of the Oriental Group on Taiwan's electronics industry should not be underestimated.

In the oriental supply and marketing system gradually built by Li Xuan, Taiwan's electronics companies are the second largest parts suppliers and production contractors after Hong Kong's electronics companies.

Every year, the value of Taiwan's production and exports, which is leveraged by the two major industries of the Oriental Bloc, games and computers, is as high as NT$100 billion. If the Eastern Group and RCA fully withdraw from Taiwan because of this incident, then Taiwan's electronics industry is bound to suffer a heavy blow!

What's more, the total number of employees recruited by RCA's Taiwan branch is as high as 22,000, including 13,000 employees at the Taoyuan main factory. If the RCA factory is directly shut down, this increase of 22,000 unemployed people will be a heavy burden for the Taiwan authorities!

Therefore, anger is anger, and in fact, the Taiwan side will not take too severe punishment against the RCA Company and the Eastern Bloc! Li Xuan already knew this before he came to Taiwan.

But Taiwan is also a place where Li Xuan can't give up the layout, so he put on a low profile from the beginning, and before leaving Hong Kong, he called President Yu of the Executive Yuan to make a sincere apology.

After Li Xuan arrived in Taiwan, he first went to the RCA Taoyuan General Factory to understand the situation on the spot, and then went to Taipei to have an hour-long closed-door discussion with Zhan Minshan, the political councilor in charge of the investigation of the incident!

Li Xuan sincerely proposed from the beginning that RCA was willing to spend NT$100 million to carry out emergency water network management construction and renovation in Taoyuan City, especially in the area around RCA's Taoyuan General Plant. First of all, make sure that residents with nearby groundwater contaminated can quickly drink safe and hygienic tap water.

In addition, RCA will invite world-renowned ecological restoration experts to develop the most reasonable and appropriate remediation plan for the soil and groundwater remediation work in the contaminated areas of Taoyuan City. At the same time, RCA is also willing to provide certain financial compensation to the relevant personnel whose bodies have been damaged due to pollution problems!

It can be said that the attitude of Li Xuan and RCA is positive and responsible enough! The Taiwan side may still have a lot of resentment against RCA, but it is still quite satisfied with Li Xuan!

At least in Zhan Minshan's view, Li Xuan, who has just acquired RCA for less than a year, is actually one of the victims of this incident. After all, all the real money needed for the aftermath work needs to be paid for by him in the end!

And Li Xuan really needs to establish an image of a wronged backstabber. Only in this way will he not have to bear a huge moral responsibility in the subsequent counterattack! (To be continued......