In the long run, we'll strengthen the nation's infrastructure construction to beef up Taiwan's national competitiveness by launching the New 10 Major Infrastructure Projects to facilitate the transition from a labor-intensive to a knowledge-based and service-oriented economy.
The government will also continue economic and financial reforms, tax reforms and deregulation to improve the Taiwan investment environment.
New emerging industries for Taiwan to develop include the financial services, tourism and human services industries, which also help build a social welfare net for the aging society.
TT: To boost foreign investors' confidence in the economy, the president exchanged views with top executives of 17 foreign investment banks and brokerages last Monday. Did the government take any advice from those foreign investment bankers?
Hu: The Cabinet is still looking into the suggestions made by participants in this meeting, most of which will be considered as long as they are in accordance with international standards.
Many participants expressed interest in taking part in the nation's emerging business opportunities after the establishment of a domestic pension-fund scheme, and many urged the government to relax restrictions on the hedge fund.
In accordance with WTO principles, Taiwan will make every necessary effort to open up its financial markets and internationalize its capital markets.
TT: The American Chamber of Commerce in Taipei (AmCham) in its 2004 Taiwan White Paper called on the government to improve economic ties with China and facilitate direct transportation links as soon as possible. What is the government's official response?
Hu: I think many people in Taiwan have exaggerated the importance of direct cross-strait links, and I don't think the absence of them marginalizes the economy at all. On the contrary, some even argue that the local economy will be marginalized once the links are put in place.
I think Taiwan has done all it can to facilitate such links, but it takes two to tango. I sincerely hope that AmCham can also extend the same suggestion to the Chinese authorities, who have set a very difficult precondition that Taiwan must accept their "one China principle" to initiate talks on the three links. Taiwan will never accept the one China principle since it denies national sovereignty.
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