TT: Has the SEF been helpful in mediating those disputes?
Yen: As there is no official liaison between the two sides, the SEF has to ask civic business associations there to help mediate. With more and more investors poised to move their businesses there, the number of disputes will continue to climb.
TT: Can the trend be reversed?
Yen: If we can't improve our investment environment and upgrade our industrial structure, no policy can reverse the tide and idle capital will continue to move across the strait. In 1996, domestic investment started to show signs of a plunge, which has contributed to negative economic growth today.
Taiwan has arrived at a critical juncture where it is very difficult to maintain sustainable economic growth. It takes fundamental legal and policy reforms to achieve that. Unfortunately, the government has failed to provide needed help by phasing out outdated regulations. And I agree that with the economic gap between Taiwan and China narrowing, more sophisticated regulations are required.
TT: Will the SEF become nonfunctional after cross-strait dialogue is suspended?
Yen: The SEF is the sole agency authorized by the government to mediate cross-strait affairs. Negotiation is the most prominent part of its duties but not all of it. Who knows when the SEF will be asked to step onto the frontline again, as was the case in the past.
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