National Development Council Minister Kuan Chung-ming (管中閔) on Tuesday defended a government plan to open the free economic pilot zones to international investment, calling the facilities “a sharp weapon” in the nation’s competition with China.
Any attempts to obstruct the plan would “give the mainland [China] enormous help,” Kuan said in a radio interview, referring to the concerns of the opponents of the plan that the zones could become a backdoor allowing Chinese enterprises to enter Taiwan without restrictions.
Taiwan must adopt globalization and liberalization measures, and these include the pilot zones plan, Kuan said.
Photo: Wang Min-wei, Taipei Times
However, the government faces time pressure in getting the zones operational because China has already begun a plan to set up an experimental free-trade zone in Shanghai, he said.
Once Beijing loosens its laws and regulations to make way for free trade, Kuan said he feared foreign investment would bypass Taiwan and flow directly to China.
The pilot zones are the weapon Taiwan needs to compete with China in attracting international funds, he said, adding that foreign investors would only go to places that welcome them.
According to the National Development Council, the pilot zones will serve as test beds for regulatory deregulation that will facilitate the movement of personnel, goods and technology.
The initiative is particularly targeted at injecting vitality into domestic industries, optimizing their competitive strengths, providing global value-added services and helping achieve the government’s goal of participating in regional economic and trade integration, the council said.
To provide the legal basis for the establishment and operation of the pilot zones, the government has drafted a special act that was reviewed by a joint committee at the legislature in Taipei yesterday.
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