Zheng and Kao Made The Remarks During The Opening Ceremony

Taipei, Dec.12, 2012 (CENS)--In a cross-Taiwan Strait meeting yesterday (Dec. 11), Zheng Lizhong, vice chairman of the Association for Relations Across the Taiwan Straits (ARATS), urged Taiwan to cut restrictions on mainland Chinese investments in Taiwan, while Kao Koong-lian, vice chairman of Straits Exchange Foundation (SEF), called for mainland China to provide better conditions for various cross-Strait economic agreements than the free trade agreement (FTA) between the mainland and Japan and Korea.

Zheng and Kao made the remarks during the opening ceremony for the fourth regular meeting of Cross-Strait Economic Cooperation Committees, under the auspices of cross-Strait Economic Cooperation Framework Agreement (ECFA), which took place in Panyu of Guangzhou yesterday.

Zheng pointed out that the global recession, triggered by the European-debt crisis, has made considerable impact on Taiwan, while the mainland’s economy is still growing steadily, though at slower pace, and still possesses huge growth potential. Both sides of the Strait should intensify their economic cooperation and step up market opening, combining the mainland’s advantages in market and resources and Taiwan’s advantages in technology and management to create a win-win outcome.

He emphasized that while the mainland is actively assisting Taiwanese-invested enterprises to transform and upgrade their operations, so as to tap China’s domestic market, Taiwan should also reduce restrictions on mainland Chinese investments in Taiwan, via such methods as mutual shareholding, thereby vitalizing Taiwan’s economy and creating more job opportunities.

Subsequently, Kao Koong-lian remarked that the economies of Taiwan and the mainland are complementary, rather than competitive, featuring proper division of labor which benefits both sides greatly. However, the mainland is carrying out the policy of import substitution, which impairs the cross-Strait vertical division of labor, leading to overlapping investments and vicious competition for some industries of both sides. Kao hoped that the mainland can induce the development of mainland Chinese industries, in the direction of creating a win-win outcome.

Kao emphasized that ongoing integration of regional economy is unfavorable to Taiwan’s exports. For instance, recently the mainland signed regional comprehensive economic partnership (RCEP) with the 15 member countries of ASEAN (Association of Southeast Asian Nations) and is negotiating FTA with Korean and Japan.

Taiwan, said Kao, is facing growing competition from Korea, whose FTAs with ASEAN, the U.S., and European Union have accounted for 36% of its exports. Therefore, Kao hoped that conditions of cross-Strait agreements under ECFA can be better than FTAs between the mainland and Japan and Korea.