Japanese press calls for new approach toward Taiwan, China

In an editorial, the Nihon Keizai Shimbun said the cross-Taiwan ECFA is the first free trade agreement (FTA) between economies in north Asia, although it is not a treaty between two states as the two sides refuse to recognize each other as such.

The pact will give Taiwanese businessmen an advantage over their competitors from Japan and South Korea in the Chinese market. This became especially true when flat panels and completed automobiles were put on Taiwan's “early harvest” list of goods to be given preferential tariffs upon entry to China, the paper said.

In the wake of the ECFA, calls in South Korea for an economic partnership agreement with China are more vociferous than those for a similar pact with Japan, and Tokyo should also consider such a pact with Beijing, given the importance of the Chinese market.

A free trade pact with China should take into account various points of view, as it could have complicated ramifications for Japan's industry and job market due to China's manipulation of the value of its currency, the paper warned.

With its unprecedented trade pact with China under the belt, Taiwan is now eyeing free trade agreements with Japan and the United States, hopeful that Beijing's earlier opposition will be reduced, claiming that as a member of the World Trade Organization (WTO) , it is entitled to strike such deals with other states.

As a member of the WTO, Japan should consider following China's example by negotiating a free trade agreement with Taiwan, although Beijing is probably using the ECFA as a stepping stone toward a political pact with Taipei.

President Ma Ying-jeou is cautious about any political pact with China, while the opposition Democratic Progressive Party, which is pushing for Taiwan independence, is bitterly opposed to the trade pact.

How Taiwan copes with China's carrot-and-stick policy — enticing Taiwan with economic benefits while threatening it with more than 1,000 missiles trained on it — is worthy of close attention by Japan, as it could have a profound effect on Japan's security, too, the paper said.

Subscribe to The China Post and save 25%. Click here

SharePrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email