Several business leaders said yesterday that the government should sign a Comprehensive Economic Cooperation Agreement (CECA) with China as soon as possible to avoid the local economy from being marginalized.
Far Eastern Group (遠東集團) chairman Douglas Hsu (徐旭東) told a business breakfast meeting that tariffs were an important reason why the government should speed up the inking of such a pact with China.
Once the ASEAN Plus One comes into force next year, a free trade zone linking ASEAN and China will go into operation, which could drag down Taiwan’s textile industry — including his own Far Eastern Textile Corp (遠東紡織) — should the two sides fail to sign a CECA.
However, as many academics and the Democratic Progressive Party (DPP) still oppose a CECA for fear that Taiwan would become like “Hong Kong” or part of China, Hsu said the government should work harder to clarify the differences between a CECA and the Closer Economic Partnership Arrangement (CEPA) signed between the territory and China.
“The opposition party should also carefully study what a CECA is, not politicize the issue,” Hsu said.
Morris Chang (張忠謀), chairman of Taiwan Semiconductor Manufacturing Co (台積電), the world’s largest contract chipmaker, said yesterday that as the WTO’s Doha Round talks had collapsed, a regional trade agreement was needed in today’s environment.
“The problem lies in the name — CECA — but the content of the agreement should be beneficial to both sides [of the Taiwan Strait] as it is similar to an FTA [free trade agreement],” Chang said, adding that Taipei and Beijing should arrive at a name that both sides could accept.
Chang Ping-chao (張平沼), chairman of the General Chamber of Commerce (全國商業總會), said that Taiwan could lose its export competitiveness if a CECA were not signed, because it would be hard for the nation’s exporters to sell their products to Southeast Asia if its tariffs were higher.
“This agreement has to be signed, or else Taiwan’s economy will be marginalized,” Chang said.
Theodore Huang (黃茂雄), chairman of the Chinese National Association of Industry and Commerce (工商協進會), which organized yesterday’s breakfast gathering, said the inking of CECA was one of the options.
“In terms of the FTA issue, the key is to not let Taiwan’s exports encounter barriers,” Huang said.
Sweeping policy changes under US Secretary of Health and Human Services Robert F. Kennedy Jr are having a chilling effect on vaccine makers as anti-vaccine rhetoric has turned into concrete changes in inoculation schedules and recommendations, investors and executives said. The administration of US President Donald Trump has in the past year upended vaccine recommendations, with the country last month ending its longstanding guidance that all children receive inoculations against flu, hepatitis A and other diseases. The unprecedented changes have led to diminished vaccine usage, hurt the investment case for some biotechs, and created a drag that would likely dent revenues and
Macronix International Co (旺宏), the world’s biggest NOR flash memory supplier, yesterday said it would spend NT$22 billion (US$699.1 million) on capacity expansion this year to increase its production of mid-to-low-density memory chips as the world’s major memorychip suppliers are phasing out the market. The company said its planned capital expenditures are about 11 times higher than the NT$1.8 billion it spent on new facilities and equipment last year. A majority of this year’s outlay would be allocated to step up capacity of multi-level cell (MLC) NAND flash memory chips, which are used in embedded multimedia cards (eMMC), a managed
CULPRITS: Factors that affected the slip included falling global crude oil prices, wait-and-see consumer attitudes due to US tariffs and a different Lunar New Year holiday schedule Taiwan’s retail sales ended a nine-year growth streak last year, slipping 0.2 percent from a year earlier as uncertainty over US tariff policies affected demand for durable goods, data released on Friday by the Ministry of Economic Affairs showed. Last year’s retail sales totaled NT$4.84 trillion (US$153.27 billion), down about NT$9.5 billion, or 0.2 percent, from 2024. Despite the decline, the figure was still the second-highest annual sales total on record. Ministry statistics department deputy head Chen Yu-fang (陳玉芳) said sales of cars, motorcycles and related products, which accounted for 17.4 percent of total retail rales last year, fell NT$68.1 billion, or
In the wake of strong global demand for AI applications, Taiwan’s export-oriented economy accelerated with the composite index of economic indicators flashing the first “red” light in December for one year, indicating the economy is in booming mode, the National Development Council (NDC) said yesterday. Moreover, the index of leading indicators, which gauges the potential state of the economy over the next six months, also moved higher in December amid growing optimism over the outlook, the NDC said. In December, the index of economic indicators rose one point from a month earlier to 38, at the lower end of the “red” light.
RSS