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Economic Daily News: Cross-strait cooperation, not competition

Economic Daily News: Cross-strait cooperation, not competition

Rapid development in China's industries have led to dramatic changes in their interactions with Taiwanese counterparts, creating an environment of competition rather than cooperation as Taiwanese firms lose their competitive edges and Chinese firms struggle with problems brought by overlapping investments. While there is a lack of incentive for positive cooperation, another major factor for friction is the inadequate level of mutual trust between businesses on the two sides of the Taiwan Strait. The lack of trust stems from the different scales of operations at Taiwanese and Chinese businesses, something that puts up mental barriers between them. At the same time, China has failed to open its markets as promised, and its poor record in protecting intellectual property rights has hindered talks for cooperation. While it is true that competition helps boost business vitality, the level of rivalry in commodities, capital, talent, technology, and production across the strait is being fueled by excess capacity due to overlapping investments and could ultimately harm economic development. Facing trends of globalization and regional economic integration, leaders in China and Taiwan have a responsibility to find ways to shift vicious competition into cooperation. That way, they will be able to increase business competitiveness and improve the allocation of industrial resources. Taiwan and China should work together to establish a fair and orderly market environment, defuse malicious competition, prevent unfair competition and help forge cooperation between industries on the two sides. Also vital is mutual trust, which must be founded by settling differences in cross-strait business laws and regulations and in their respective economic systems. Moreover, Taiwan and China need to work together in business policies and economic strategies if they hope to allow exchanges and mutual investments to reach their full potential. (Editorial abstract -- Jan. 8, 2014) (By Y.L. Kao)


Updated : 2021-05-06 17:24 GMT+08:00