Taipei Times: Why do you propose the concept of a "cross-strait common market" (
Vincent Siew (蕭萬長): Let me first clarify this point by saying that my common market proposal is in tandem with the WTO framework. Both China and Taiwan expect to join the WTO [later this year] but we will both be more susceptible to the influence of the world economy after WTO accession.
Under such circumstances, [economic] cooperation to the mutual benefit of both sides will be the core issue. The establishment of a cross-strait common market will therefore be supplementary to our WTO memberships. The market will not conflict with the WTO framework; on the contrary, it will further enhance our power in the WTO.
PHOTO: CHEN CHENG-CHANG, TAIPEI TIMES
TT: Minister of Economic AffairsLin Hsin-yi (
Siew: The establishment of a cross-strait common market is a long-term goal and will not be attained right away. The concept is a strategic direction and a future goal for the development of cross-strait trade. If the two sides reach an agreement on my proposal, these trade obstacles across the Strait will eventually be resolved.
TT: Can you briefly elaborate on this cross-strait common market?
Siew: [It's aim is] to enhance mutual benefits and economic cooperation across the Strait. It follows the example of the European model, but is definitely not a transplant since our relations with China differ greatly [from relations in the EU].
As we implement step-by-step procedures to accomplish [the common market] along a timeline of 20 to 30 years, economics, not politics, should be the top priority in promoting the market. I hope both sides will put aside their political differences and ideologies.
In terms of measures for its establishment, there are several proposed stages. In the first stage, we should promote the normalization of economic and trade relations across the Strait to remove trade obstacles. Secondly, both sides should coordinate the development of economic rules and regulations with the aim of harmonizing policies in order to reach a Free Trade Agreement. Thirdly, economic integration, including a customs union and monetary mechanism, can then be set up to facilitate the establishment of the cross-strait common market.
TT: Some academics have argued that the concept will be too market-driven to ignore severe political differences with China and have therefore concluded that economic approaches to enhancing cross-strait relations are problematic.
Siew: For the past few years, political approaches to solving the cross-strait impasse have proven unfeasible. The impasse hasled to increasing political confrontation since we have different political positions and political systems.
Where economic interaction is concerned, however, it is based on mutual interest irrespective of governments. It is therefore an inevitable trend for the two sides to become economically closer and to allow cooperation to take place.
Given the fact that China has adopted economic reforms, economic integration will pave the way to peacefully enhance mutual understanding and mutual trust and finally political integration across the Strait.
TT: A US business executive, Therese Shaheen, has characterized your proposal as a "one system, two countries" model since you have emphasized economic unity first and suggested that political convergence can then follow. Will your proposal pose a challenge to China's insistence on "one country, two systems?"
Siew: She has probably misinterpreted my proposal. My proposal involves no political implications at all and I disagree with her in that respect. Other than that, I have to say I endorse her calls on the Bush administration to reorient the US' China policy by adopting a new economics-based approach.
What I presented [in a Jan. 22 lecture] has nothing to do with either "one system, two countries" or "one country, two systems."
Let me stress again the importance of cross-strait economic integration, by putting aside political differences, as a starter that will lead to peaceful political integration eventually.
TT: Politically speaking, under what circumstances do you think China will accept the concept of a cross-strait common market?
Siew: China's main political concern lies in its "one China" principle. On this, I have long made my stance clear. That is, I think that both governments should honor the 1992 consensus -- one China with both sides having different interpretations -- to remove the political barriers toward future cross-strait economic cooperation.
It's hard to work out a formula or new terminology that both sides can accept. Besides, politicians of our generation have no right to decide Taiwan's future for the next generation. We should, therefore, put economic deals before political ones.
TT: What form do you envisage cross-strait economic cooperation taking?
Siew: To create `win-win' cooperation. China can take advantage of Taiwan's economic capabilities in management, marketing and investment while its own competitive manufacturing with lower wages and costs will play an important role [for both sides].
In addition, Taiwan is located at the strategic vantage point by way of which foreign investors enter China's market. Taiwan is therefore able to bridge the gap between China and other developed countries in terms of business models, cultures and customs. There are many multinational corporations in China right now, but few have made money because they are not accustomed to China's business environment.
TT: You've revealed a little bit about your intended visit to China. Will you meet with high-ranking Chinese officials?
Siew: We are still planning the trip. The trip's purpose is to promote my common market concept and to learn China's response. I have not ruled out the possibility [of meeting with high-ranking officials] if the government consents to my doing so, however. After all, as a former government official, I am banned from visiting China.
TT: During your time in office, you drew up the restrictions on former government officials visiting China. But now, you seem to have different opinions on such visits.
Siew: Yes, I now feel the ban should be lifted because we should have faith in our government officials' loyalty. Also, the government should encourage its officials to visit China as often as possible to enhance mutual understanding.
TT: You are currently the KMT's vice chairman. How do you look at the possible cooperation between your party and the People First Party (PFP)?
Siew: Inter-party cooperation in elections is an ideal, but in politics it's all about practicality and competition. It's not easy.
TT: As a former premier, how do you evaluate the feasibility of Premier Chang Chun-hsiung's (
Siew: This solution was actually adopted by my administration three years ago. So I think he is heading in the right direction. However, he should stress the importance of near total implementation of the plan. To accomplish that goal, the premier will have to help to remove all bureaucratic red tape for major construction projects.
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