Former World Bank president Paul Wolfowitz said on Monday the spectacular growth of the Chinese economy provided both “danger and opportunity for Taiwan.”
Introducing Council for Economic Planning and Development Minister Christina Liu (劉憶如) at an American Enterprise Institute discussion on investment in Taiwan, Wolfowitz said: “It is an uncomfortable situation to be the neighbor of a colossus with whom your relations are at best tense.”
However, he told the meeting in Washington there was an “enormous opportunity” for Taiwan to expand not only its economy but also its international space.
Taiwan could be the “gateway” to China’s economy, he said.
“In Taiwan’s unusual and difficult circumstances, its economic relations with the outside world are perhaps the strongest part of Taiwan’s position,” he said.
Liu said that while Taiwan’s 10 percent economic growth over the past year was “very impressive,” it was the composition of that growth that was most important.
About 70 percent of that growth was “domestic led,” sparked by an increase in domestic investment and consumption, she said.
“We have decided that economic growth should be co-driven by domestic and external demand. It will bring benefits for employment, wage-growth and more even income distribution,” Liu said.
“Our future policy direction should prioritize measures that boost domestic demand and contribute to the development of the service sector,” she said, adding that this amounted to “a major change” and was her main message during her visit to the US.
“Priority for future policy should be to place emphasis on private consumption and investment in Taiwan,” Liu said.
In the coming decade investors will see a “dramatic change.”
Wolfowitz then asked: “I know there are people in Taiwan who are nervous that [the Economic Cooperation Framework Agreement] ECFA is bringing too much of a mainland presence to Taiwan. How are you going to keep your identity in the future? What will happen if there is a change of government in Taiwan? Are people going to pull back? How much of a consensus do you feel there is around the broad direction of policy and where do you think there might be points of controversy in the political sphere?”
Liu said that if the ECFA was the right policy and the markets showed economic benefits, there would be no pulling back.
Asked if the ECFA could continue if Taiwan moved toward independence, Liu said that if the majority in Taiwan were to pursue independence “then the whole thing will be totally different.”
If independence became a central theme and central belief for Taiwanese, then “everything would change,” she said.
“I don’t think that is the consensus for Taiwan. We have done many surveys and the majority of people in Taiwan are hoping to keep the ‘status quo.’ I don’t think that independence will be an issue,” Liu said.
UPGRADE: The Kang Ding-class frigate is replacing its Chaparall missiles with Tien Chien II and Hua Yang VLS, which would provide it with long-range, 360° air defense Taiwan plans to produce 1,200 to 1,376 Hai Chien II missiles (海劍二, Sea Sword II) — also known as TC-2N — to serve as the standard air defense system of the navy’s surface combatant fleet, a source said yesterday. Last week, the Hai Chien II, the naval version of the Tien Kung II missile (天劍二, Sky Sword II), completed a live-fire test in waters off the National Chungshan Institute of Science and Technology’s Jiupeng facility (九鵬) in Pingtung County’s Manjhou Township (滿州). The MIM72 Chaparral and other dated air defense missiles that currently arm Taiwanese ships have inadequate range to combat Chinese
REASONS FOR TRAVEL: An assistant professor said that proposed amendments to penalize drivers if they used drugs overseas would not deter people from traveling People who operate a motor vehicle under the influence of marijuana would have their driver’s license revoked, even if they used the substance while overseas, the Ministry of Transportation and Communications said yesterday, citing proposed amendments to the Road Traffic Management and Penalty Act (道路交通管理處罰條例). The amendments would also authorize the government to revoke the licenses of people determined to have used Category 1 or Category 2 narcotics, even if they were not operating a vehicle while under the influence of drugs, as well as ban them from taking the license test for three years, the ministry said. People aged 18 or
HEAVY WEATHER: Typhoon Jangmi is due to crash straight into the Ryukyus as airlines look to shift flights to larger aircraft or cancel flights to Okinawa entirely Taiwan’s international air carriers announced flight adjustments over the weekend as Typhoon Jangmi is forecast to hit the Ryukyu Islands today and tomorrow. The Central Weather Administration (CWA) upgraded Jangmi from a tropical storm to a typhoon at 8am yesterday, with the eye located 580km south of Naha city. It was moving north at 19kph. Today, China Airlines’ CI-120, CI-121, CI-122 and CI-123 flights between Taoyuan and Naha, Okinawa, have been canceled as well as CI-132 and CI-133 between Kaohsiung and Naha. EVA Air’s BR-112, BR-113, BR-186 and BR-185 flights between Taoyuan and Naha are also canceled. Low-cost carrier Tigerair Taiwan canceled IT-230,
Johanne Liou (劉喬安), a Taiwanese woman who shot to unwanted fame during the Sunflower movement protests in 2014, returned to Taiwan last night after being deported from the US. She is to stand trial in Taiwan for charges involving embezzlement, fraud and drug crimes. The Criminal Investigation Bureau (CIB) said it took her into custody at Taiwan Taoyuan International Airport and would first question her before transferring her to the New Taipei District Prosecutors’ Office. She was arrested upon disembarking a flight from San Francisco that landed shortly before 7pm. Liou absconded to the US in 2019 after jumping bail
RSS