Council of Labor Affairs Minister Jennifer Wang (王如玄) yesterday reiterated that signing an economic cooperation framework agreement (ECFA) with China would not increase unemployment in Taiwan.
“It [an ECFA] will ultimately have a positive impact on the overall employment population in Taiwan based on various assessment reports, although some industries will certainly be adversely affected,” she told a forum at the Chung-Hua Institution for Economic Research (CIER, 中經院) in Taipei.
The minister said the government was working on measures to help vulnerable industries transform and expressed regret that the political debate has turned the matter into a zero-sum game.
Economists and government officials gathered to discuss the impact of trade liberalization on the workforce and how the government plans to cope with its implications.
“In the face of cross-strait trade liberalization, however, we should not ignore the fact that China has had a magnetic effect on Taiwan’s human resources because of its strong economic development,” said Cheng Chih-yu (成之約), a professor at National Chengchi University’s Institute for Labor Research.
Citing a survey by the Ministry of Education on the plans of high school graduates, Cheng said that 47 percent of parents wanted their children to attend school in China regardless of whether the government recognized Chinese education credentials.
Meanwhile, the demand for foreign workers in Taiwan, especially from China, will continue to grow, he said, because the nation’s low birth rate and ageing population mean Taiwan’s younger workforce is dwindling.
“I think the magnetic effect will be greater if the government does not sign an ECFA, because the cross-strait trade barriers will encourage Taiwanese industries to move to China and ASEAN countries,” Chen said.
Wang Jien-ping (王劍平), chief secretary of the Bureau of Foreign Trade, said China had long attracted Taiwanese talent because it is one of the biggest economies in the world. Taiwan is not the only country to be affected, Wang said.
“Though China has lured Taiwanese investment, at the same time, Taiwan can try to attract investment from China,” Wang said.
Meanwhile, China Credit Information Service Ltd (中華徵信所) yesterday estimated that Taiwanese electronics firms based across the strait will pay out 345 billion yuan (US$50.52 billion) in tax levies a year to China unless the ECFA talks cut their tax rate from 25 percent to 15 percent.
The agency issued a statement urging the government to negotiate preferential treatment for Taiwanese businesses including China-based ones, which have made a great contribution to the Chinese economy.
Out of 10,747 electronics makers in China with 5 million yuan in annual revenues, those founded or invested in by Taiwanese account for about 36 percent of revenues.
China-based Taiwanese electronics makers accounted for 1.2 trillion yuan in exports, or 45 percent of the total, the agency said.
ADDITIONAL REPORTING BY STAFF WRITER
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