As Taiwan moves toward finalizing an Economic Cooperation Framework Agreement (ECFA) with China, a US Congressional commission reports a “disturbing trend” by Beijing away from the development of a free market system and toward greater government control of the economy.
“Contrary to its claim of being a market-oriented economy, Beijing continues to comprehensively plan, direct, support and control its economy,” said Carolyn Bartholomew, chairman of the US-China Economic and Security Review Commission.
Releasing the commission’s seventh annual report on Thursday, she said: “Many of China’s economic reforms over the past 30 years are, in reality, a government-directed industrial policy that seeks to promote export-led growth.
“Key industries including auto parts, machine tools, information technology, optics, photonics and clean renewable energy are targeted for government support,” she said, adding that Beijing provides massive loans from state-owned banks to industries already producing over capacity.
Bartholomew said: “This approach gives China’s exporters a substantial price advantage in international markets and disadvantages companies hoping to export to China.”
‘CHILLING’
A leading US economist, speaking on the condition that he not be named, said that Bartholomew’s words were particularly chilling for Taiwan in view of what the report itself said about an ECFA.
“There is widespread opposition to the plan [ECFA] on Taiwan,” the report said.
It added: “Some opponents of the plan, led by the Democratic Progressive Party, charge that a free-trade agreement would sell out Taiwan. Skeptics also maintain that it would be tantamount to a one-China market and eventually political reunification with the mainland.”
BEST OPTION
The report said that proponents of an ECFA, spearheaded by the administration of President Ma Ying-jeou (馬英九) and major industry associations, argued that signing the proposal with China represented Taiwan’s best near-term option for revitalizing its economy after the effects of the global economic crisis.
The report said, however, that other commentators believe that an ECFA would harm Taiwan’s economy by hollowing out its manufacturing and electronics industries, crowding out trade with the US, Japan, the EU and ASEAN nations, while increasing Taiwan’s economic dependency on China.
Rupert Hammond-Chambers, president of the US-Taiwan Business Council, said: “Ma doesn’t have support for the political/military initiatives that China will demand post-ECFA and that’s when support drops off. Not for ECFA but for those initiatives that are political and military in nature.”
“ECFA will continue to enjoy support through the process — unless its roll out is handled poorly,” he said.
Bartholomew said it was the commission’s responsibility to focus on the difficult areas of the US relationship with China and “shine some light” on areas where there were problems.
FIGHTER JETS
Asked if the commission was in favor of the US selling advanced F-16 fighters to Taiwan, Larry Wortzel, vice chairman of the Commission, said that it was very clear that the balance of air power across the Taiwan Strait was tipping in favor of China and that Taiwan’s aging air force fleet needed to be improved to address the imbalance.
He said: “It’s not our place to recommend specific weapons systems.”
Bartholomew said, however, that the commission members were going to Asia next month and would spend some time in Taiwan where they would focus their discussions on air power.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
LANDSLIDES POSSIBLE: The agency advised the public to avoid visiting mountainous regions due to more expected aftershocks and rainfall from a series of weather fronts A series of earthquakes over the past few days were likely aftershocks of the April 3 earthquake in Hualien County, with further aftershocks to be expected for up to a year, the Central Weather Administration (CWA) said yesterday. Based on the nation’s experience after the quake on Sept. 21, 1999, more aftershocks are possible over the next six months to a year, the agency said. A total of 103 earthquakes of magnitude 4 on the local magnitude scale or higher hit Hualien County from 5:08pm on Monday to 10:27am yesterday, with 27 of them exceeding magnitude 5. They included two, of magnitude
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique