The nation must be aware of the changes taking place in China's economy and the country's current trends if cross-strait economic and trade exchanges are to be peacefully developed, Council for Economic Planning and Development (CEPD) Chairman Hu Sheng-cheng (
Noting that Taiwan and China have maintained inextricably close economic relations, with Taiwan enjoying a trade surplus of over US$200 billion between 2000 and last year, Hu said that keeping abreast of changes in China's economic situation is a vitally important task that the Republic of China government must undertake.
Speaking at a seminar on "Cross-strait Peace and Development" sponsored by the think tank Taiwan Institute of Economic Research, Hu said that while celebrating its expanding economy, China is also facing challenges from economic globalization as well as other internal economic variables, which are poised to have an adverse impact on the development of cross-strait economic and trade relations.
As China's economy matures, Taiwan could soon lose its competitive edge, Hu asserted.
In order not to lose out, the country should accelerate the 10 new major construction projects by 2008; advance the development of core, high-tech industries; upgrade the structure of industries; allow the private sector access to low-interest loans and taxation incentives and help the industrial and service sectors to secure higher value-added production, he said.
Another way of bolstering Taiwan's bargaining power in seeking a cross-strait peace framework, Hu added, was for the country's enterprises to continuously expand and strengthen global operations to sharpen their international competitiveness.
Currently there are about 40,000 to 50,000 Taiwanese companies operating throughout China, with investments totaling over US$70 billion, according to CEPD tallies.
Between 2000 and last year, cross-strait trade totaled US$311 billion, with Taiwan enjoying a trade surplus of US$201.3 billion, the CEPD statistics showed.
During the same seminar, business leaders also called for friendliness and reconciliation to improve and sustain cross-strait relations.
From a businessman's point of view, peace is absolutely essential, said Theodore Huang (
Huang offered seven tips to "breed wealth" by achieving cross-strait peace.
First, Huang called for Chinese authorities to allow Taiwan and Chinese companies to maintain separate but complementary operations for producing at lower prices.
Second, Huang called for rulers from both sides not to force civilian businessmen to take sides or make known their political affiliation.
Third, he said unfair trade barriers and discriminatory economic policies should be stopped.
Other tips include having both sides cooperate under the WTO framework and help each other face dumping charges or other unfair competition from countries beyond Taiwan and China and encourage both sides to enter regional free trade arrangements, Huang said.
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