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Letters: Not a zero-sum game

I cannot agree with Huang Tien-lin (黃天麟) when he says European companies "abandoned" Taiwan, or that European governments are in some way now less friendly to Taiwan than before and that this is somehow connected to the rise of the Chinese economy ("Goodbye, Paris, more pain to come," Oct. 14, page 8).

His analysis seems to be based on a fundamentally flawed presumption that increasing trade with China is a zero-sum game for Taiwan. Instead of looking solely at Taiwan's market share for European trade he should consider the whole picture.

Have Taiwanese exports increased over the last six years? Undoubtedly. So, too, has China's share of European trade. But the two are inextricably linked -- increased Taiwanese exports to China contribute directly to Chinese exports to Europe (and elsewhere) and the rising trade helps create or protect jobs and income in Taiwan, especially in higher value-added areas.

Nor are European companies neglecting Taiwan in favour of China. Many large and medium sized British companies operate successfully in both economies.

The main deterrent to them doing more business here is not the rival attraction of China but the host of regulations imposed by the Taiwanese government itself, supposedly to protect domestic companies from Chinese competition.

On the specific issue of air services, Huang should ask himself why it is that at a time when EVA Air is withdrawing its services to Paris, there are now 11 flights daily between London and Hong Kong, not to mention many more from Hong Kong to other European cities.

Clearly, demand in Hong Kong alone is nowhere near enough to justify this level of service. Rather, it reflects Hong Kong's role as a gateway city to China. If the administration here was to allow direct flights across the Taiwan Strait I have little doubt that EVA Air and China Airlines would reap immediate benefits by using Taipei similarly as a hub city for their own long-haul routes.

The real danger to Taiwan's survival will come not from embracing globalization and allowing Taiwanese businessmen to compete internationally but from trying to oppose change through isolationist policies.

Michael Reilly

Director

British Trade and Cultural Office, Taipei

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