Alexa
  • Directory of Taiwan

Economic Daily News: Taiwan's solution to China-Korea FTA

Economic Daily News: Taiwan's solution to China-Korea FTA

China and South Korea announced the conclusion of their free trade negotiations in Beijing on Monday, nearly two months earlier than expected. The development demonstrates that Taiwan's bargaining chips on cross-Taiwan Strait issues are fast running out as Beijing moves to "ally South Korea against Japan." The China-Korea free trade agreement will directly impact several of Taiwan's industrial sectors, including steel, machine tools, automobiles, displays, petrochemicals, textiles and glass. The Ministry of Economic Affairs has forecast that this will lead to a 0.5 percent drop in Taiwan's gross domestic product, a 1.34 percent fall in exports and a US$8.9 billion loss in overall output value. In fact, these effects were already known 30 months ago, when Beijing and Seoul began their FTA talks. Taiwan's government, however, has so far failed to clear the way for the Taiwan-China agreements on trade in services and goods, mainly because many people in Taiwan distrust China. The best solution is finding a middle way that allows Taiwan to become more economically integrated with China and the Asia-Pacific region while keeping some room for autonomous development. This is a difficult path, but is the one that Taiwan must take. (Editorial abstract -- Nov. 11, 2014) (By Y.F. Low)


Updated : 2021-10-27 05:25 GMT+08:00