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Economic Daily News: China's external economic policy

Economic Daily News: China's external economic policy

Chinese Premier Li Keqiang said recently that China's external economic development is following a "roadmap" that will contribute to a transition in the country's domestic economy and its dream of becoming a political superpower. Given the close political and economic relationship between Taiwan and China, it is imperative that we fully understand this roadmap. For the past 30 years globalization has been dominated by the U.S. to benefit its capitalist economy and develop related institutes. However, in the wake of the U.S. debt crisis in 2008, Beijing came to realize the high risks of over reliance on the U.S. economy and its financial market. In 2009, this resulted in a diplomatic initiative providing funds to developing countries, with the purpose of utilizing China's foreign reserves and creating demand for Chinese products. Strategically, this initiative sought to map out an international economic group led by China rather than the U.S. or European economies, as part of efforts to realize Chinese interests. The U.S. response was the Trans-Pacific Partnership (TPP), a comprehensive trade pact being negotiated by 12 countries. The proposed agreement covers protections for intellectual property and labor rights as well as prohibiting export subsidies, downplaying the patterns to define China's economic development in favor of U.S.-led values. Over the past two years, China's external economic development has been more aggressive. In 2011, Beijing endorsed the Regional Comprehensive Economic Partnership (RCEP), an ASEAN-centered proposal for a regional free trade area. The 16 RCEP participants account for almost half of the world's population and about 30 percent of global GDP. In September 2013, Chinese President Xi Jinping proposed a national development initiative that included a "new Silk Road economic belt," linking China's central and western regions to the Middle East and Europe, and a "21st Century maritime Silk Road" leading to east Africa and Europe through the Strait of Malacca and the Mediterranean Sea. Given that the RCEP trade proposal and "one belt, one road" initiative were aimed at shaping a de-Americanized world, how should Taiwan respond to them? First of all, we need to consider the political implications of any economic issues. Secondly, we must find the best position for Taiwan in TPP and RCEP negotiations that is not in conflict with U.S. and Chinese interests. Last but not least, we need to build transshipment ports with China to maximize trade benefits from the "21st Century Maritime Silk Road" development.
(Editorial abstract -- March 22, 2015) (By Jeffrey Wu)


Updated : 2021-04-20 00:59 GMT+08:00