Establishment of "direct links" will aggravate Taiwan's unemployment as it will hollow out the nation's traditional industries and small- and medium-sized enterprises (SMEs), Board of Foreign Trade officials claimed yesterday.
Echoing the viewpoints of many SME owners, the officials said that although the direct links will add convenience to cross-strait transportation, it will also accelerate relocation of businesses from Taiwan to China or accelerate the closure of Taiwan plants, which will result in increased unemployment.
Taiwan's traditional industries and SMEs are already facing cut-throat competition from cheaper Chinese products. Large quantities of Chinese-made goods are expected to enter Taiwan after direct links take effect in the near future, the officials predicted.
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