The returns on cross-strait economic exchanges may be diminishing because the Chinese economic model is changing, former chairman of the American Institute in Taiwan Richard Bush said on Wednesday.
“Taiwan was a real beneficiary of export-led growth relying on essentially cheap labor, abuse of the environment and local corruption,” he said.
However, China was moving away from that model, and Taiwanese companies aiming to position themselves in the middle of the global supply chain had better move with it, he said.
At the same time, Chinese companies that would like to displace their Taiwanese partners are coming to prominence, he added.
Under these circumstances, Taiwan’s economic future cannot rest solely on liberalizing the nation’s relationship with China.
Taipei should beware of “putting all of its eggs in that basket,” he said.
Now director of the Center for Northeast Asian Policy Studies at the Brookings Institution, Bush launched his new book Uncharted Strait: the Future of China-Taiwan Relations.
He said that Taiwan needed to deregulate and improve economic relations with all of its major trading partners.
Bush said that although President Ma Ying-jeou (馬英九) understood that the country had to lift some of its protectionist trade barriers, politically it was extremely tough for him to put new policies into action.
Ma had used some of his political capital and had removed one key barrier involving the import of US beef, Bush said.
“I hope that leads to liberalizing steps between our two countries,” Bush said.
“We all understand how difficult this is to do in Taiwan’s domestic political context, but from a long-term perspective it is essential,” he said.
Bush said that it might be possible for Taipei to reach a separate and independent fisheries agreement with Japan before some kind of general agreement was reached between Beijing and Tokyo over the Diaoyutai Islands (釣魚台), known in Japan as the Senkakus.
“My personal understanding is that the Ma administration would very much like to see a new fisheries agreement with Japan — if only to improve the livelihood of the Taiwan fishermen,” Bush said.
He added that negotiations for such an agreement had gone on for some time and had now been given “a new urgency.”
“I hope that progress can be made soon, because the fishing season is coming. I don’t think that Beijing would be unhappy if Taiwan reached such an agreement,” Bush said.
He said that Taiwan’s agreements “in the economic area” seemed to be “OK” with Beijing.
Bush said that he wanted to “stress the danger” in the current dispute over the Diaoyutai islands.
“Realistic people understand that resolving the territorial dispute is a long way off, and very difficult,” he said.
One solution might center around “some sort of joint development” of the islands’ resources because that would emphasize cooperation, he added.
“The way countries — particularly China — are operating in the vicinity of the islands is worrisome,” Bush said.
FUKUOKA SITUATION: Japanese media reported that the pathogen is expected to be identified by the summer, while the CDC downplayed the idea that it was hMPV A “mysterious cold-like illness” reported in Japan’s Fukuoka Prefecture does not seem to be a new disease, but Japanese authorities have been asked about the situation, the Centers for Disease Control (CDC) said yesterday. The Fukuoka Prefectural Medical Association on Wednesday told a news conference that a “mystery cold” that has become a hot topic on social media is “highly likely to be caused by some kind of viral infection,” Japan’s KBC News reported. “Many people are experiencing symptoms starting with a sore throat, followed by a runny nose, phlegm and a severe cough,” KBC News reported, citing association officials. Health authorities are
Nvidia Corp CEO Jensen Huang (黃仁勳) arrived in Taiwan yesterday ahead of upcoming AI and technology events, saying he plans to meet with clients and Taiwan Semiconductor Manufacturing Co Chairman C.C. Wei (魏哲家) during his visit. After landing at Taipei Songshan Airport, Huang posed for photos with fans and handed out Yakult drinks to reporters and supporters waiting at the scene, saying he has “a lot to do” during the trip. Asked about reports that Nvidia’s planned headquarters site in Taipei’s Beitou Shilin Technology Park could break ground on May 27, Huang said that if the company holds an event, he would
Carrefour Taiwan is to begin using a new name from the start of July, but it cannot divulge the name until then, the chairman of the supermarket chain's parent company said today. President Chain Store Co chairman Lo Chih-hsien (羅智先) was asked by reporters after a shareholders' meeting to confirm whether the company has settled on a new name for the supermarket brand. In March, the government-registered name of two Carrefour Taiwan branches was quietly changed to "Le Chia Kang" (樂家康) in Chinese, raising speculation that has been selected as the name. Lo said that because of local regulations and contractual obligations, the
The Philippines would likely be involved in any conflict over Taiwan due to its proximity to the democracy claimed by China, President Ferdinand Marcos Jr said, reiterating a stance that risks angering Beijing. “In the Philippines, we do not have a choice because Taiwan is so close to the Philippines and we have almost 200,000 Filipino nationals living and working in Taiwan,” Marcos said in an interview with Japanese media in Manila on Monday. The Philippine leader’s comments come ahead of a state visit to Japan next week, where he is to meet with Japanese Prime Minister Sanae Takaichi to discuss security
RSS