The deal, signed on Sept. 9 and quietly tabled late last month, is to be ratified, behind closed doors, within just 21 sitting days and without any public hearings. Legislators on the trade committee were briefed for just one hour by government officials last week, with no independent witnesses present.
To any Taiwanese who has tracked the style of negotiations between President Ma Ying-jeou’s (馬英九) administration and China in the past four years, the situation described above will sound eerily familiar.
However, the deal in question is not the Economic Cooperation Framework Agreement (ECFA) signed in 2010 after six months of negotiations, or the investment protection agreement inked on Aug. 9. It is the Foreign Investment and Protection Agreement (FIPA) between China and Canada, which critics say requires public scrutiny and risks putting Canada at a disadvantage.
However, the Conservative government of Canadian Prime Minister Stephen Harper refuses to hold public hearings and seems intent on forging ahead with an agreement that even its supporters admit contains flaws.
Among the most alarming aspects of the deal are its 31-year lifespan, in contrast with the six months’ warning necessary for Ottawa to pull out of the North American Free Trade Agreement (NAFTA), and the failure by Canadian negotiators to ensure that investors receive “national treatment” in China, which means that, at best, Canadian investors in China can expect treatment similar to that enjoyed by domestic Chinese firms. Moreover, Canada would be barred from imposing conditions favoring Canadian workers or resources for projects within Canada and it would be forced to restrict domestic access to fossil fuels, uranium, forests, fish and all other exhaustible resources in equal measure to any restrictions placed on exports to China, as Green Party Leader Elizabeth May said in an Oct. 1 press release.
Needless to say, such clauses are cause for concern when one deals with a resource-hungry rising power like China, whose state-owned firms are in the process of acquiring a large segment of Canada’s oil companies and fields, such as the proposed US$15 billion Nexen deal.
Then there is the clause that allows Chinese state-owned enterprises to sue the Canadian government for laws, regulations and court decisions that could “interfere with or prevent present or future profits.” While NAFTA contains similar provisions, FIPA goes further, as litigation could be done in secret with special tribunals, in which only the federal government can participate, leaving local governments and firms out in the cold.
The problem with all this is that investment between Canada and China is likely to be mostly one-way, with Chinese investment vastly outgunning that from Canada. This means that the risks are mostly Canada’s.
The Taiwanese government should pay close attention to what transpires between Canada and China in the coming months and years, as Beijing’s behavior and that of Chinese companies could provide important clues as to how they might behave in Taiwan. There are many instances of overlap, in which “unjust” clauses tend to favor China, and those could gain in importance as Taipei further opens up the country to Chinese investment.
It has often been said that Taiwan’s engagement with China can serve as a model for the international community and as a means to “predict” Beijing’s behavior. It is now apparent that Taiwan is not the only country that is facing skewed agreements. It may not have Canada’s natural resources, but intellectual property rights and company secrets in key high-tech sectors are just as likely to be targeted by Chinese investors. Most assuredly, Taiwan can learn a few things from Canada’s FIPA experience with China.
“Testy,” “divisive,” “frigid,” “an exchange of insults” were some of the media descriptions of last month’s meeting in Anchorage, Alaska, between US Secretary of State Antony Blinken, US National Security Adviser Jake Sullivan and their Chinese counterparts. Council on Foreign Relations president Richard Haass said that, rather than the “deft handling” needed in US-China relations, this encounter was “mishandled, a terrible start [with] way too much public signaling.” Yet, contrary to conventional wisdom, the acrimonious encounter with Chinese Minister of Foreign Affairs Wang Yi (王毅) and Chinese Central Foreign Affairs Commission Director Yang Jiechi (楊潔篪) was a great success for US diplomacy
In studies of Taiwan’s demographic changes, the Institute of Sociology at Academia Sinica has found that a mere 36.5 percent of men and 19.6 percent of women think getting married is an important life event. The institute also found that the government spending money or amending laws and regulations in order to encourage families to have children is having no impact on the birthrate. Opinions differ on whether this kind of change is a matter of national security, as Japan faces a similar situation, without having a negative impact on its economic strength. Fewer women are willing to marry and the divorce
Interrupting the assimilation of Xinjiang’s Uighur population would result in an unmanageable national security threat to China. Numerous governments and civil society organizations around the world have accused China of massive human rights abuses in Xinjiang, and labeled Beijing’s inhumane and aggressive social re-engineering efforts in the region as “cultural genocide.” Extensive evidence shows that China’s forceful ethnic assimilation policies in Xinjiang are aimed at replacing Uighur ethnic and religious identity with a so-called scientific communist dogma and Han Chinese culture. The total assimilation of Uighurs into the larger “Chinese family” is also Beijing’s official, central purpose of its ethnic policies
Early last month, China’s rubber-stamp legislature, the National People’s Congress (NPC), officially approved the country’s 14th Five-Year Plan. The strategy was supposed to demonstrate that China has a long-term economic vision that would enable it to thrive, despite its geopolitical contest with the US. However, before the ink on the NPC’s stamp could dry, China had already begun sabotaging the plan’s chances of success. The new plan’s centerpiece is the “dual-circulation” strategy, according to which China would aim to foster growth based on domestic demand and technological self-sufficiency. This would not only reduce China’s reliance on external demand; it would also
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