News from The China Post on 31 January 2010 indicated that the ASEAN Free Trade Agreement – China resulted in Taiwan businessmen in China being able to expand investment into manufacturing and to increase sales in ASEAN countries. This is because the advantages of lower wage and the existing competition among ASEAN countries in tax reduction, which is designed to attract foreign investment. For example, Vietnam may be a better choice than Chinese agricultural products.
News from The China Post on 31 January 2010 indicated that the ASEAN Free Trade Agreement – China resulted in Taiwan businessmen in China being able to expand investment into manufacturing and to increase sales in ASEAN countries. This is because the advantages of lower wage and the existing competition among ASEAN countries in tax reduction, which is designed to attract foreign investment. For example, Vietnam may be a better choice than Chinese agricultural products. This is due to the fact that even though the product is the same but wage-cost is lower in Vietnam.
Mr. Chen Po-chin, the President of Taiwan’s leading economists group, said that since China signed the ASEAN Free Trade Area Agreement – China in 2002, Taiwan businessmen have been preparing plans to support and move the production base which requires a significant number of workers to ASEAN. However, the move still needs further assistance which can only be achieved in governmental-level negotiations.
However, even though Taiwan will benefit from the signing of trade cooperation with China, Taiwan could not avoid to be forced to face import products from China. These products are mainly agricultural products; approximately 800 products, mostly exceeding needed goods, will inevitably flow into Taiwan.
Mr. Chen Po-chin believes that the signing of agreements on economic cooperation with China (Economic Cooperation Framework Agreement: ECFA) will make Taiwan’s economy continuingly depend on the Chinese economy for a very long time. If China continues to prevent Taiwan in signing an agreement on free trade liberalization with other countries, he believes that Taiwan will continue to try every way to seek equality with China.
