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Economic Daily News: Rapid freezing of economic growth?

Economic Daily News: Rapid freezing of economic growth?

Taiwan editorial abstract (File 5 of a daily roundup) Since the inauguration of the Ma administration, the pace of cross-strait liberalization has accelerated, but the agreements covering the opening reached to date have been simple in nature with less impact on Taiwan.
With the Ministry of Economic Affairs now working on easing restrictions on high-tech investment in China, some media and scholars have expressed concern.
They contend that if the government eases restrictions while allowing Taiwanese businessmen operating in China to return to Taiwan and issue TDRs, all of Taiwan's capital will be soaked up. Without increasing investment in Taiwan, the moves would also lead to a rapid freezing of Taiwan's economic growth.
But in reality, capital is not a problem in Taiwan. Since the global economic crisis erupted, central banks have adopted loose monetary policies that have left investors awash in money, and stock and real estate markets have thrived.
What could cause a rapid freezing of Taiwan's economic growth is insufficient momentum for investment and a lack of economic strength.
We are worried that as China maintains its vibrant economy, Taiwan will be stalled by its declining exports.
Also, as Taiwan opens up to Chinese businesses, they could buy into enterprises with high potential, which could undermine Taiwan's economy even further.
At this critical juncture, the government should make good use of its edge in certain industries, geographical location and economic structure to revitalize its economy, and pool social resources to help medium-sized enterprises with potential take advantage of China's vast market.
We simply wonder if the government is capable of doing that.
(By Lilian Wu)




Updated : 2021-02-25 19:35 GMT+08:00