Sat, Dec 15, 2001 - Page 17 News List

Experts see China trade as a must

AT A CROSSROADS With the ongoing political deadlock widely expected to hamper post-WTO cross-strait trade, Taiwan may have to choose between its insistence on political ideologies and economic development

By Joyce Huang  /  STAFF REPORTER

The role of Taiwan's government following WTO entry should be to grease the wheels of the national economy, pundits said yesterday.

"[After WTO accession in January], the government should transform from a controller to a facilitator. That's the government's new job," former Philips Electronics board member, Lo Yi-chiang (羅益強), said yesterday at the "Taiwan at a Crossroads" forum.

Bureaucrats can make that happen by functioning like a service industry in competition against other governments. In addition, upgrading living standards is important to improving the investment environment as a whole, Lo said.

On the future of cross-strait trade relations, Lo said that Taiwan, through horizontal and vertical integration, should use China's cheap labor and huge market to maintain its competitiveness while building up its own brands in the growing market.

Representing Taiwanese busi-nesspeople, Lo yesterday delivered the speech during the forum, co-organized by the Asia Foundation in Taiwan (台灣亞洲基金會) and the Epoch Foundation (時代基金會) in Taipei, after its keynote speaker, Harry Harding, outlined the three major challenges all Asian countries, including Taiwan, face.

Harding, a specialist in US politics and international relations of Asia with a particular emphasis on China, is currently dean of the Elliot School of International Affairs, and professor of international affairs and political science at George Washington University.

Those challenges are learning to deal with the rising economic power of China, adopting strategies through greater economic integration and liberation, and rethinking the global agenda by pursuing transnational cooperation in the Asia-Pacific region, he said.

Under these circumstances, Harding advised Taiwan to make a "more positive choice" by "working with the US to integrate China into the global economic community."

Also in attendance at yester-day's forum were political heavyweights former premier Vincent Siew (蕭萬長), former vice premier Hsu Li-teh (徐立德), Control Yuan member Kang Ning-hsiang (康寧祥) and Taiwan Semiconductor Manu-facturing Co's (台積電) chairman Morris Chang (張忠謀), who urged Taiwan to treat China as both a competitor and collaborator.

With the continued political deadlock widely expected to hamper post-WTO cross-strait trade interaction, participants said that they see a crossroads coming where Taiwan will have to choose between its insistence on political ideologies and economic development.

"[Taiwan should use] the concept of integration -- economical, social, cultural and even political. Set the political deadlock aside [since] both sides agree it is in their interests to expand economic cooperation without political indication," Harding said.

He added, however, that to ease the gridlock, one of the two sides would probably have to demonstrate a willingness to be committed to "conditional unification."

Following China's WTO accession as the 143rd member, Taiwan is to become the 144th member on Jan. 1. Questions still remain as to whether cross-strait trade will be handled by the trade body after the two enjoy equal status as economic entities.

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