The cross-strait trade in services agreement will offer Taiwan's small and medium-sized enterprises (SMEs) direct access to mainland China's booming market and create more jobs at home as mainland investment dollars flow into Taiwan, Premier Jiang Yi-huah said today.
Speaking at an assembly meeting of the National Association of Small and Medium Enterprises (NASME), the premier said Taiwan's SMEs possess a free and competitive spirit that has led them to new ventures around the world. In these changing times, he hopes the SMEs will take advantage of the cross-strait services pact to break new ground and create business opportunities.
Critics of the agreement claim it only helps larger companies penetrate the mainland market but offers no advantage for SMEs, or even that it will take away local jobs, Jiang said. Not only are these statements incorrect and malicious but they completely undermine extensive efforts by the government to liberalize local markets and integrate Taiwan into regional free trade areas.
Premier Jiang pointed out that many of the businesses that have made successful inroads into the mainland market are in fact SMEs. Mentor Hair Salons have opened many branches on the mainland while Zhengzhang Laundry Services is experiencing astonishing growth. Other companies faring well include New Focus Auto, which specializes in car beautification services, and the 3&3 International Education Corp.
The premier described SMEs as the mainstay of Taiwan's economy—they make up 98 percent of all companies in the country and employ 79 percent of the workforce. SMEs are clearly the most important contributor to Taiwan's economic growth. They provide steady work and incomes so citizens can enjoy a comfortable lifestyle.
From his visits to SMEs in different parts of Taiwan, the premier said he was most impressed by the diversity, vitality and ingenuity of the workers, as well as that unassailable confidence in the future that is the hallmark of the Taiwanese people. It is because SMEs are so vital that the NASME and the Small and Medium Enterprise Foundation, Taiwan have come together to establish the National Award of Outstanding SMEs.
Five individuals received the award from the premier today: Wu Hui-lin, research fellow at the Chung-Hua Institution for Economic Research; Lai Sun-quae, chairman of the shipbuilder CSBC Corp., Taiwan; Yang Yih-cheng, president of Taiwan Small Business Integrated Assistance Center; Lu Shiow-yen, legislator; and Huang Song, chairman of Unique Broadcasting Inc.