Minister of Economic Affairs Yiin Chii-ming (尹啟銘) said yesterday that Taiwan had more to lose than China by not signing an economic cooperation framework agreement (ECFA).
“China’s reasons for signing an ECFA with Taiwan may be deemed political as it wants to be perceived as a peaceful superpower. However, at the same time, it needs Taiwanese innovation,” Yiin said. “Our rationale for signing an ECFA is stictly economic in nature.”
Touting the benefits of an ECFA with China, Yiin said that part of the nation’s economic woes came from being marginalized because it lacked favorable trade pacts with the 10-member ASEAN.
SMALL ENTERPRISES
Speaking to an audience composed of small and medium-sized enterprises (SME), Yiin said he understood the problems that businesses faced as a result of the global economic crisis.
“By the end of this year, an estimated 40 million people could be unemployed globally. This is simply an economic reality we must all embrace,” Yiin said.
When asked whether the ECFA would negatively impact on Taiwanese SMEs, the minister sidestepped the question and said the government was promoting three measures to protect them.
Industries that may see increased competition from China will be excluded from the “early harvest” clause, he said.
There will also be a delay or exclusion of the same industries in the zero customs tax categories, he said.
Finally, the government will work closely with local companies to help them upgrade their businesses to enhance their competitive advantage, he said.
Yiin also preempted the audience’s questions by saying that sensitive issues such as the Chinese missiles targeted at Taiwan, human rights and Taiwanese sovereignty would not be included in the ECFA agenda, nor should they be part of the cross-strait trade talks given their political nature.
Speaking to the media before the meeting, Yiin said it would take another quarter or two of data for the government to determine the state of the local economy.
“Nonetheless, the government’s expansion of the budget for public infrastructure, along with the 12 iTaiwan projects, will undoubtedly improve the economy,” Yiin said, adding that the real impact of public works would be seen sometime during the third quarter.
DRAM PARTNERSHIP
In related news, Yiin said yesterday that the government would treat Formosa Plastics Group (台塑集團) as an equal to the government-led Taiwan Memory Co (TMC, 台灣記憶體公司) if the group’s DRAM subsidiary, Nanya Technology Corp (南亞科技), and its US partner, Micron Technology Inc, would need financial assistance in riding out the difficult time.
On Thursday, Nanya and Micron announced they would not form a partnership with TMC, after TMC last week selected Japan’s Elpida Memory Inc as its technology partner.
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