Both Presidential Palace and Cabinet’s Mentality Is Questionable in Twisting Cross-Strait Economic and Trade Ties

  Both Presidential Palace and Cabinet’s Mentality Is Questionable in Twisting Cross-Strait Economic and Trade Ties

China Times Editorial (Taipei, Taiwan, ROC)

May 14, 2017

 Translation of an Except

Nobody, including the DPP, may deny the importance of cross-Strait economic/trade ties. The DPP won last year’s election because the people believed that President Tsai had the capacity to maintain the cross-Strait status quo, including economic/trade relations. However, in the year since the DPP took power, it not only failed to maintain the "status quo," but it tilted massively in a direction detrimental to Taiwan. Precisely because the cross-Strait political deadlock has no solution, the leadership in the Presidential Office and the Cabinet, knowing full-well the importance of cross-Strait economic ties, has, on the other hand, no plans, nor capacity; thus, when they talk about cross-Strait economic/trade issues, they were awkward in their attitude.

Premier Lin Chuan, in an exclusive interview with the US media a couple of days ago, focused on the New Southward Policy, seeking to conclude FTAs (free trade agreement) with foreign countries; raising Taiwan's economic diversity. In cross-Strait economic and trade relations, he said that there is a huge market on the other side of the Strait, and Taiwan has to maintain relatively friendly relations with the Mainland, adding that if we oppose strengthening cross-Strait economic/trade ties, it will be detrimental to us. In other words he "does not oppose” cross-Strait economic/trade development, but he had no desire to actively push for it.

On the same day, President Tsai granted an exclusive interview to six ASEAN and India media outlets; her "keeping a distance from the Mainland" attitude was vivid. She focused on the New Southward Policy and expounded on its goals. She especially cited the Mainland’s "One Belt, One Road," saying that the two were completely different models. In fact, there are quite a few convergences between the New Southward Policy and the One Belt, One Road; Taiwan businessmen have great opportunities to utilize, in a parallel fashion, the business opportunities present in the two to pursue maximized benefits. Lamentably, President Tsai does not attach importance to these opportunities.

Actively pushing for cross-Strait economic/trade ties and firmly grasping business opportunities in the Mainland market are the unshirkable responsibility of the Tsai government. The New Southward Policy is indeed important, but at the same time of pushing for it, we must meanwhile strive to maintain the heat in cross-Strait economic/trade ties, otherwise the gains will not cover the losses. However, the awkward attitude on the part of the leadership of the Presidential Office and the Cabinet vis-à-vis cross-Strait economic ties, has, on the other hand, reflected an unwholesome mentality, hoping to dilute and downgrade cross-Strait economic/trade ties, making resources turn to markets in the New Southward Policy. No wonder in the past year, the Legislative Yuan treated coldly the bill titled "Statute Governing Oversight over Cross-Strait Agreements” and the ratification of the "Cross-Strait Services Trade Agreement"; this is also symbolic of the Tsai government’s neglect of cross-Strait economic/trade ties.

From the angle of economic scale, the markets in the New Southward Policy will absolutely not be able to replace the Mainland market in the foreseeable future; cross-Strait economic ties are the "dependable capital" of Taiwan's economy. The foundation of Taiwan's economy lies in coalescing with the global industrial chain, and fully using the Mainland’s manufacturing advantages to produce merchandise for entry into European and American markets. Sino-US economic/trade talks produced dramatic progress: the Mainland massively opened its market for the service industry and financial services; the United States has also been re-assessing its response to the One Belt, One Road policy, representing that US merchandise will enter the Mainland market in great quantities. In other words, the United States will no longer need Taiwan as an intermediary; if Taiwan does not make a breakthrough, it will probably become an orphan in the global economic/trade structure.

The Tsai government must strive to adjust its cross-Strait policy, seeking to revive cross-Strait institutionalized consultations, completing all negotiations under the cross-Strait economic/trade framework and sign agreements, and at the same time encourage private sector enterprises to enhance cooperation with Mainland enterprises, easing the entry of Mainland capital to Taiwan and relaxing regulations for its operations, and helping businesses to better use the Mainland’s resources.

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