Intelligent Industry

Written by Peter Li-Chang Kuo

(Chinese)

The ancient saying goes: “The sage does not hoard. The more he does for others, the more he possesses; the more he gives, the more he gains.” The "Intelligent Industry" we proclaim is in line with the sages' advocacy of not hoarding or seeking personal gain, but rather following the altruistic principle of conforming to the way of heaven, selflessly giving and sharing, constantly giving and helping others, and in turn gaining more for oneself. This approach naturally leads society toward common prosperity and sustainable development.

When former President Lee Teng-Hui received my book “Open the Way for Next Generation III” (Kuo, L. 2008), he immediately flipped through it. Upon reading page 271’s definition of “Intelligent Industry” — “An industry that possesses a derivative value chain and benefits all participants within that chain” — he was delighted and said to the Control Yuan member Mr. Lin Jiang-Tsai next to him, “Mr. Lin, Taiwan truly needs this kind of intelligent industry!”

Fig 1: My book “Open the Way for Next Generation” (為下一代開出路)

To this day, Intelligent Industry is also what the United States urgently needs under the MAGA policy.

Former President Lee said, “Miss Din, please come here and tell me—why is the ‘Global Channel – TES’ considered part of the intelligent industry?” Linda sat down beside the President and explained,

“TES is a new tech-economic system. According to official APEC data from 2003, it is the best practice of helping 240 million people start their own businesses, creating job opportunities and solving structural unemployment. At the same time, through this new commercial mechanism, people can ‘work from home and earn money from around the world.’ They don’t have to leave the house, and yet they can know what’s happening across the globe.”

Fig 2: Linda Din explaining TES to President Lee

The emergence of the intelligent industry has a historical background. From 1981 to 1985, Taiwan's industrial transformation failed, leading to the withdrawal of foreign capital and a surge in unemployment. Those unemployed turned to taxi driving but were often robbed. Always compassionate, my wife Linda Din declared in 1986 that she would start a business to “make Taiwan rich through grassroots initiative” in order to solving structural social problems.

She said, “Through mutual cooperation and proactive development of an intelligent industry with derivative value chains, we can promote the 'technologization of traditional industries and the intellectualization of high-tech industries'. This innovative industry can also be used to solve unemployment.” (Din, Linda, 2001:4)

To implement intelligent industry, a tool is needed — this tool is the "Global Channel-TES (The eStore System)." The invention of TES created a complete industrial chain — combining "innovation, manufacturing, and market" — to provide both traditional and tech industries with derivative value chains, allowing all participants to benefit.

This Global Channel-TES investment project is protected by "intellectual property rights" (IPRs) due to its invention status and public presentation at international economic organizations. This legal copyright ensures the intelligent industry can operate without disruption and be applied effectively to solve unemployment.

Intelligent industry requires a Public-Private Partnership (PPP), involving both civil society and the government, to build a new economic era that brings peace and prosperity. It applies new technologies in conjunction with international trade policies, guiding industries toward “intellectualization” through shared awareness. It replaces outdated competition-driven models with cooperation, growth-chasing with sharing, and creates opportunities for new entrepreneurs — ushering in a new generation transforming from a knowledge-based to a wisdom-based economy.

Following the 1997 Asian Financial Crisis, which triggered widespread economic downturns across Asia (with South Korea among the hardest hit), Linda Din brought the fruits of intelligent industry R&D to the APEC meeting in Vancouver, promoting her invention: "an intelligent industry that benefits every participant in the industrial chain." Her concept gained wide recognition, and she was invited as a speaker at APEC 1998. Her invention directly contributed to the formation of e-commerce legislation, offering a tool-based solution to countries plagued by recession and unemployment — earning her the title of "Universal Concern."

Chinese President Jiang Zemin invited us to the conference of APEC 2001 in Shanghai to explain the importance of "Global Channel-TES" for national development — particularly its role in the e-commerce sector and as a multilateral trade system that many countries can participate in. We brought boxes of the book "A Daughter of Defense Employee" (Din, L. 2001) to gift to President Jiang and other representatives, contributing to the eventual creation of two major policy frameworks: "ICT" (Information and Communications Technology) and "IPR" (Intellectual Property Right).

During the SARS outbreak in 2003, the Australian government invited Linda Din to speak at APEC in Thailand on "Addressing the Needs of SME Exporters." Her proposal, "Global Channel-TES," was selected as the best practice for helping 240 million people launch startups. When asked about the commercial potential of TES’s derivative value chains, she replied: “Ten trillion US dollars.” During the COVID-19 pandemic, TES substantially helped 1.5 billion people earn globally from home — with just the cashless transaction portion reaching USD 36 trillion.

After the 2003 APEC, the world officially began revolving around the Global Channel-TES. Yet, in our homeland, resources were depleted, and the return of offshored industries failed to bring back necessary capital. Taiwan transitioned from being a contract manufacturer for advanced nations to merely a contractor for offshored economies. The cartel-corruption alliance, colluding with law enforcement and investigations, ran rampant. In response, Linda Din authored the book "Global Channel-TES" (Din, L. 2004)

On May 27, 2004, she wrote:

Today, we face “a world in transition and a globalized economy.” Reader, ask yourself: over these years, has your spiritual well-being, knowledge, and material wealth increased or diminished? I believe, for most people, globalization has led to a shrinking of assets!…

We call Global Channel-TES an “Intelligent Industry” because it was created with a humanistic vision of generating employment, thereby establishing universal economic value. While the new generation needs new technologies, policy structures still override technological innovations!

Since the TES concept was introduced to APEC in 1997, it has led to the creation of more than three policy frameworks:

1) 1998: Electronic Commerce (EC)

2) 2001: Intellectual Property Rights (IPR)

3) 2003: Best Practice

4) (Additionally, in 2001: ICT)

Furthermore, her advocacy to solve unemployment through entrepreneurship is now mirrored in "Micro Business" policy. Her call for grassroots initiatives with government partnership has also been echoed in "PPP" declarations.

The new economic era demands higher standards for monetary use. Traditional cash, coins, and contact-based cards no longer suffice. Thus, her proposal to use "Contactless TranSmart Chip Card" for electronic payments has become mainstream in national e-currency legislation.

Within Global Channel-TES, the transition “from business digitization to e-store digitization,” and “from isolated operations to connected system networks,” has become the direction of future commercial technologies.

When Global Channel-TES was recognized as the Best Practice at the "APEC SME Exporter Community II" meeting on August 4, 2003, in Chiang Mai, Thailand, it symbolized the advent of a new era and triggered limitless business opportunities.

TES is a successful investment case that has inspired new thinking across regional economies. It serves as an incubator for startups, offers a new marketing channel for innovative products, and encourages entrepreneurship to tackle the structural unemployment caused by the transition from planned economies to market economies and globalization.

With a complete industry chain that spans innovation, manufacturing, and marketing, Global Channel-TES acts like a powerful engine driving the wave of creative destruction. It generates derivative value chains, creates vast job opportunities, and promotes “technologizing traditional industries and intellectualizing high-tech industries.” Countries that implement it will see a substantial rise in national income and a sharp reduction in unemployment.

As a living-water project prioritizing "public interest" and operating as a fully self-sustaining model of transnational public infrastructure, Global Channel-TES is an exemplary platform for global employment solutions.

The 21st century is the century of Channels. Those who control "Marketing Channels" will ensure balanced industrial development. Global Channel-TES plays this balancing role and can be used to break through regional economic barriers — transforming competition into cooperation.

According to the 2003 APEC Ministerial Joint Statement, 240 million people in the Asia-Pacific region are in urgent need of entrepreneurship each year. All country representatives expressed the desire to commercialize “Global Channel-TES” as soon as possible to meet the critical demand for entrepreneurship-led employment. Hence, using tools such as public listings and asset securitization for international financing has become the most pressing task. This approach aims to generate benefits for APEC policies and share those gains among all participating economies. (Din, L. 2004)

When former President Lee Teng-Hui heard that the concept of the “Intelligent Industry originated in 1986,” he immediately rose from the sofa, walked upstairs from the living room, and returned holding a copy of his own book, “Managing A Greater Taiwan” (Lee Teng-Hui, 1994). As he flipped through it, he said:

Fig 3: Lee Teng-Hui’s book “Managing A Greater Taiwan” (經營大台灣)

“Miss Din, on page 273, this article titled ‘Various Issues in Taiwan’s Economic Development’ is based on a speech I gave on September 6, 1986. Government efforts also require the contributions of citizens like you to carve out a path for Taiwan.”

In this book, before addressing how to solve the issues in Taiwan’s economic development, President Lee first quoted verses 1–10 from chapter 37 of the "Book of Ezekiel." The essence of the passage is as follows:

“The valley was full of bones, and they were very dry. God said to the prophet Ezekiel: ‘Prophesy to these dry bones and say to them, O dry bones, hear the word of the Lord.’ God said He would cause sinews to grow upon them, put flesh upon them, cover them with skin, and breathe life into them. The bones would then come to life and stand on their feet as a vast army.”

President Lee said, “Becoming a vast army is my favorite scripture.” When he served as Governor of Taiwan Province, he proposed the idea of a “force of 80,000 agricultural workers.” Its origin lies in this very scripture. The bones represent things that were once dead but come back to life, forming an army to contribute to the nation and society. This passage illustrates how God works through people — all things must be aligned with the will of God. The “breath of God symbolizes the spirit;" any endeavor must be infused with spirit to succeed. Only when these two conditions are met — divine purpose and spiritual empowerment — can something be truly accomplished.

He continued:

We observe today that many countries have failed economically because they lack a solid, grounded approach. These examples teach us that "we must do things in accordance with divine principles and ensure that spirit and purpose are deeply instilled.”

In the past two to three years (1984–1986), Taiwan encountered unprecedented economic challenges. Every morning, the newspapers were filled with problems that even experts couldn’t solve. "The main reason was the global economic downturn centered around the United States, which triggered a rise in protectionism. This had a direct impact on Taiwan’s export-driven economy." We were pressured to open our markets, lower tariffs, and even adjust our exchange rates. If one doesn’t understand the deeper context, one might mistakenly think imperialism is back to oppress us — but that’s not the case. Nonetheless, we must recognize that the world economy is in a deeply troubled state.

For example, Taiwan’s foreign exchange reserves recently reached an unprecedented "USD 34.5 billion" — a figure that shocked many. This large reserve led to an appreciation of the New Taiwan Dollar. Meanwhile, over the past three to four years, domestic investment intentions were dampened by various factors, and imports didn’t grow as expected. These complex problems caused economic disruption and confusion in the private sector, leaving many unwilling to take action. (The New Taiwan dollar appreciated from 40 to 26 per U.S. dollar in 1986.)

At such a time, the government — responsible for ensuring stable economic growth — must take clear and decisive policy measures to ease the current crisis. Therefore, tonight I would like to offer two perspectives as possible solutions and policy directions for the challenges we face. (Lee Teng-Hui, 1994:275)

President Lee proposed addressing the economic situation by establishing two key bodies: the Economic Reform Committee and the National Development Conference.

First, the Economic Reform Committee was established on May 7, 1985, comprising 27 scholars, experts, and entrepreneurs. Over six months, it conducted comprehensive studies on regulations and systems affecting investment and economic development. The committee submitted a report to the Executive Yuan, recommending that Taiwan’s economic reform should focus on liberalization, internationalization, and institutionalization.

For example, in the past, Taiwan imposed various restrictions on the cross-border flow of goods, capital, and technology for specific reasons. But these restrictions were often resented by trade partners. Therefore, based on current economic conditions, such policies and rules should be reviewed, with an aim to gradually open up the economy. (Lee Teng-Hui, 1994:276)

Second, the National Development Conference was held from July 14 to 25, 1986, gathering 215 domestic and foreign experts, divided into eight working groups. The theme was “Moving Toward a Developed Nation.” After 12 days of discussion, the conference presented a strategic vision for Taiwan’s long-term economic development:

“In the long run, Taiwan’s key goals are to continuously improve living standards and enhance quality of life. Therefore, achieving high economic growth, fair income distribution, balanced socio-cultural development, and environmental protection is essential to realizing this goal.”

To achieve such growth, Taiwan must boldly face international competition, overcome trade barriers, and address domestic institutional problems — all necessary steps toward becoming a developed nation.

Fundamentally, economic liberalization is the driving force that nurtures entrepreneurial independence, planning, and innovation. It is also the key to boosting competitiveness and management efficiency. Liberalization allows market mechanisms to flourish and creates the conditions for economic internationalization. As for institutionalization, it sets the rules and guidelines businesses must follow to maintain economic order. (Lee Teng-Hui, 1994:277)

In this liberalization and institutionalization process, both government and the public play vital roles. Besides maintaining public safety and economic stability, "the government must create an environment conducive to development" — one that ensures fairness and free competition across all sectors, without preferential treatment.

“Such an environment requires liberalized and competitive domestic markets, rationalized and orderly financial systems, and the modernization of banking and finance.” (Lee Teng-Hui, 1994:277)

Regarding political leadership, President Lee recalled telling U.S. Senate Foreign Relations Committee Chairman Richard Lugar during a visit:

“The Republic of China once greatly benefited from U.S. assistance. So today, ‘we are willing to cooperate with the U.S. by reducing tariffs, adjusting exchange rates, and opening our markets to U.S. goods and technology.’ However, one condition must be met: Please do not expect too much from us — we are still a developing nation, not yet developed.”

Within the "General Agreement on Tariffs and Trade" (GATT), there’s a special clause that allows countries facing emergencies to take certain protective measures. For example, multilateral agreements, while generally seen as against the spirit of free trade, are permissible if a country faces massive unemployment. This shows that although the core intent of liberalization is to promote global trade, "some degree of protectionism is also tolerated." (Lee Teng-Hui, 1994:279)

At this stage in our industrial policy, we must focus on the actual needs of industry — not just whether policies are liberal or protective. Industrial policy must cultivate not just "new industries" but also "good industries."

The government must take greater responsibility in addressing economic development — just as Ezekiel’s scripture said: "You must act with heart." The U.S. government does not do this because its industrial technologies were largely developed by the private sector. In Taiwan, however, much of the technology comes from government research institutions. If these government-developed technologies are to be adopted by private enterprise, the government must actively promote them so they can take root.

To do this, "we must embrace liberalization" — open our doors a little wider, lower tariffs slightly, allow the import of what we need, and let those imports compete with our own products. And we must believe in our own ability to compete. (Lee Teng-Hui, 1994:281)

In conclusion, given the highly complex international economic landscape, coordination among nations is critically important. "If each country only prioritizes its own interests without considering others, the world may once again plunge into a global economic depression like that of 1929."

In such a scenario, we won’t be able to solve our problems. Now is the time for "mutual assistance" — to work together to address these global challenges. This is the only solution to the current economic crisis. And it ties back to the "spirit" emphasized at the start with "Ezekiel’s vision.”

I hope we all share this conviction: "Though Taiwan is small, just like chili peppers — the smaller they are, the spicier." We must never underestimate our role. Instead, we should amplify our impact on the global economic stage. (Lee Teng-Hui, 1994:285)

After more than three hours of discussion, President Lee Teng-Hui invited Linda to join the “Leadership Cultivation Institute,” a course lasting one year. Linda replied, “What I do is social enterprise—I don’t understand politics!”

President Lee responded sternly:

“Your TES was invented to enrich Taiwan and solve global unemployment. That is public interest—that is politics. You cannot say you don’t understand politics!”

Mr. Lee’s deep interest in our concept of “Intelligent Industry” can be summarized as follows:

1. Symbolic Success of Personal Practice

1) In 1966, I brokered precision parts with Avnet Inc. for Apollo 4—then the only supplier worldwide—contributing indirectly to the U.S. victory in the space race.

2) In 1967–68, through technology I rose from poverty to wealth, and in 1969 led my countrypeople into the transistor era. In 1974, Chiang Ching-Kuo dubbed me the “Father of Taiwan’s Precision Industry.”

3) From 1982 to 1986, I brought precision manufacturing to Taipei—saving the Barbie doll, training apprentices, and introducing satellite receivers and robotics, transforming Taiwan’s industrial ecosystem.

4) In 1986, we launched the "Rich Taiwan Plan" and initiated Social Responsibility Investment (SRI). By introducing satellite receiver orders into Taiwan, we became self-reliant and went on to invent the "contactless semiconductor." This led to the creation of a new tech-economic system— "The eStore System" (TES), laying a solid foundation for the nation's industrial transformation and upgrade.

2. Taiwan’s Critical Industrial Transformation

1) By 1990, as traditional manufacturing began to move offshore, we provided automation services and acted as an angel investor to rescue struggling enterprises.

2) In 1993, President Lee, following our advice, hosted the first International Automation Machinery Exhibition at Taipei World Trade Center—kickstarting the technologization of Taiwan’s traditional industries.

3) In 1997, we introduced TES at the APEC summit in Vancouver as the “Steering the Global E-Commerce Project,” marking one of the most important cross century initiatives.

4) In January 1998, we successfully brought "APEC Technomart II" to Taipei, broadening Taiwan’s industrial horizons.

3. A Social Vision of Participation & Shared Benefit

1) 1998–2003: Taiwan needed a new industrial model—not just producing parts, but controlling upstream IP and systems integration. Intelligent Industry perfectly met this need. We leveraged Taiwan’s sole international exchange platform (APEC, achieved by President Lee) to facilitate policies and legislation spanning e commerce, micro businesses, ICT, IPR, and “Best Practices.”

2) 2003–2008: Despite fierce attacks by cartel and corrupt groups, we shifted Taiwan’s industry from contract manufacturing to innovation driven, non-contact (contactless) economies.

3) In 2009, at the APEC leaders’ meeting, we contributed "IIA-TES" to President Obama’s team—offering the way of rebuilding the global economy for post financial crisis. This also aligned with the wave of the wave of intelligentization of the tech-sector has benefited Taiwan's technology industry.

4. Our Innovation in “Intelligent Industry”

1) Core proprietary technologies: contactless TranSmart chip, eStore, VAM, TSCM, and the TES system—creating new economic models like digital physical-virtual integration and disintermediated e-commerce.

2) Rule setting capability: These systems can lead global mainstream tech societies.

3) Talent capital, global value chain leadership, and societal restructuring through innovation align precisely with President Lee’s pillars: liberalization, internationalization, institutionalization, localization.

4) They enhance Taiwan’s internal resilience and economic self sufficiency while enabling technology to serve people in a spirit of cooperation and shared benefit.

5) This directly addresses Taiwan’s core developmental challenges—hence, the President’s keen interest.

5. President Lee’s Perspective

Lee Teng Hui—one of the few East Asian leaders versed in economic philosophy and agricultural economics, and familiar with modern social thinkers like Peter Drucker and Theodore Levitt—placed high value on intellectual capital and institutional innovation. Upon seeing “Intelligent Industry,” he immediately recognized:

“This is not just a technical invention—it’s a strategic mindset and practical blueprint capable of reversing the course of national fortune.”

Essence of “Intelligent Industry”:

My path—from investing in knowledge (individual wisdom) to creating industries with derivative value chains—led President Lee to say, “Taiwan needs this kind of Intelligent Industry.” Because it forms the foundation of a self-determined, sustainable, and inclusive economy, this is the future of national power.

The essence and sustainable value of Intelligent Industry lie in three indispensable elements:

1) Compassion & Universal Concern: At its core is a people-first value system. Without compassion, innovation devolves into profit maximization, failing to generate sustainable value.

2) Cooperation & Sharing: Compassion shapes inclusive innovation that cares for marginalized communities, building ecosystems where all thrive. Altruism is essential for people to cultivate a strong commitment to quality for a peaceful society and a prosperous nation.

3) Adaptability & Diversity: In a fast-changing era, only highly adaptable and diverse systems survive. Modular, flexible structures define the core design philosophy of Intelligent Industry—universally applicable.

In Summary

"Intelligent Industry" is an innovative model integrating technology, humanism, and sustainability. Its value transcends economic benefit—it’s an industry that creates human well-being. These elements collectively build the foundation for creating “added value and derivative value chains,” enabling shared prosperity. Our path for Taiwan predated its time, crossing eras from industrial to informational, and offering a paradigm from technology to governance. President Lee’s endorsement signifies more than personal approval—it’s recognition of a comprehensive system capable of sustaining Taiwan’s future development. By combining innovation, cross-domain integration, intellectual property management, technical investment, and ecosystem cooperation, Intelligent Industry forms a complete added-value framework. It elevates products and services, generates layered derivative benefits, and enables all participants to share and prosper together.

References

Lee Teng-Hui, (1994). Managing A Greater Taiwan. Taipei: Yuan‑liu.

Din Linda, (2001). A Daughter of Defense Employee. Taichung: Panhornic.

Din Linda, (2004). Global Channel–TES. Taichung: Panhornic.

Kuo Li-Chang, (2008). Open the Way for Next Generation III. Taichung: Panhornic.

 

Peter Li-Chang Kuo, the author created Taiwan's Precision Industry in his early years. Peter was a representative of the APEC CEO Summit and an expert in the third sector. He advocated "anti-corruption (AC)/cashless/e-commerce (E-Com)/ICT/IPR/IIA-TES / Micro-Business (MB)…and etc." to win the international bills and regulations.

【Copyrights reserved by Li-Chang Kuo & K-Horn Science Inc.】

External Links:

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https://patents.google.com/patent/US20030197061 (Shopping System)

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