Signing an economic cooperation framework agreement (ECFA) with China would help internationalize Taiwan’s commercial and service sectors because of growing Chinese domestic demand in the wake of the global financial crisis, Vice President Vincent Siew (蕭萬長) said yesterday.
In his opening remarks at a national commercial development conference in Taipei, Siew said the nation’s service sector holds a competitive edge over other countries when doing business in China because of the similar culture and shared language.
Siew said the nation’s businesses must take advantage of this increasing demand after “China changed its economic policy to [focus on] the development of its internal market following the global financial storm because it is uncertain about international markets.”
“If Taiwan’s 85ºC coffee shops could take on the Chinese market before advancing to other markets, maybe one day they could compete with Starbucks,” Siew said.
He said the service sector accounted for more than 70 percent of the nation’s GDP last year, but it seems that neither the government nor the private sector was placing much importance on the promotion of these sectors.
He suggested the sectors be modernized through the improvement of the domestic commercial environment, the innovation of services and the internationalization of commercial management.
“Only through modernization can the commercial and service industries survive and grow,” the vice president said, adding that service providers must be innovative to improve product differentiation and increase value.
One of the ways to improve the commercial environment would be to update outdated laws and regulations that restrict business development, Siew said, citing an example of the Company Act (公司法), more than 70 years old, which has failed to keep up with the times.
Chung-Hua Institution for Economic Research (中經院) vice president Wang Jiann-chyuan (王健全) said it was also important to integrate interdepartmental resources and to implement corporate social responsibility to improve the nation’s business environment.
Wang suggested that the government prioritize the relaxation of commercial regulations, while setting up an interdepartmental cooperation mechanism, citing successful experiences overseas.
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