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AIT calls for expanding economic ties with China

The US has urged Taiwan to expand economic links with China if it is to be a regional business hub, saying its national interests would not be endangered by closer ties.

In an address to the American Chamber of Commerce in Taipei (Amcham) dinner on Tuesday night, American Institute in Taiwan (AIT) Director Stephen Young hailed recent progress made in cross-strait links.

Taiwan's further opening of its economic relationship with China "is critical if this island is to become a regional and global center," he said.

"Amcham members have benefited from measures that increased the number of mainland employees that can travel to Taiwan for business meetings," Young said, referring to charter flights from China at four major holidays.

Chinese corporates and executives would be exposed to higher standards of corporate governance and better business practices, Young said.

"In addition, closer economic relations, especially with the influx of more PRC [Peope's Republic of China] tourists, will hold the potent example of Taiwan's democracy up for the people of China," he said.

He said that as long as Taiwan retained its ability to defend itself there was no need for Taiwan to fear closer ties with the huge and rapidly growing neighboring economy.

China has been Taiwan's largest trading partner since late 2002 and Taiwanese businesspeople have been major investors in China.

Bilateral trade last year rose to US$88.12 billion, up 15.4 percent, according to figures released by the Bureau of Foreign Trade.

The figure accounted for 20.7 percent of Taiwan's total external trade last year, compared with 20 percent in 2005.

Last year, Taiwan registered a trade surplus with China of US$38.54 billion, up 6.6 percent.
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