Taiwan urged to capitalize on China

Kao Chang, deputy secretary general of the National Security Council, who has studied development of cross-strait business and trade relations for years, said it is hard for Taiwan to disconnect itself economically from China, with an island-based economy and limited natural resources.

“Taiwan will fare much better economically if it pays closer attention to the global market mechanism, while aggressively taking advantage of opportunities in China,” Kao asserted.

Speaking on the development and prospects of cross-strait business and trade relations at an academic symposium on the modernization of China held in Taipei, Kao said although governments from both sides of the Taiwan Strait in the past had adopted interventionist measures to prevent business relations from being further normalized, the complementary nature of the two sides’ economies prevented bilateral exchanges, especially business interactions, from being stymied.

In other words, Kao said, despite obstructions of various types, cross-strait business and trade have continued to flourish under the influence of natural market mechanisms.

“Cross-strait economic exchanges have also become one of the most important sections of Taiwan’s economy in terms of the global division of labor,” Kao noted.

He said that some people have expressed concerns that Taiwan’s “economic security” and “national interests” could be jeopardized if cross-strait business and trade ties continue to expand and Taiwan’s economy becomes highly dependent on the Chinese economy, with more domestic industries and funds moving overseas.

Nevertheless, Kao argued that from the perspective of economic globalization, China has become one of the key manufacturing plants in the world, with major multinational conglomerates attaching increasing importance to its economic clout.

“China will still be a stronghold for multinational conglomerates in terms of global positioning in years to come and Taiwan cannot afford to distance itself from China,” Kao asserted.

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