Premier Jiang Yi-huah toured around the Kaohsiung area today to help the public better understand the advantages of the recently signed cross-strait services trade agreement, clarifying what specifically the pact will and will not do.
At the CPC Corp.'s petroleum refinery in Kaohsiung City's Nanzi District, the premier spelled out the five areas that will not be open under the agreement: mainland laborers may not work in Taiwan, mainland investors may not immigrate to Taiwan, and Taiwan will not be open to investment by mainland taxi companies, publishing companies or Chinese herbal medicine retailers. Meanwhile, the agreement is expected to give a boost to 10 local sectors making forays into the mainland market: restaurant businesses, retailers, film companies, laundry services, beauty shops, electronic commerce companies, online gaming businesses, banks, insurance carriers and futures companies.
Addressing concerns that the agreement will deprive workers of their jobs, Premier Jiang said every 600 mainland Chinese business executives that come to Taiwan will translate into 6,000 employment opportunities for Taiwanese citizens. Moreover, the government has not agreed to allow mainland Chinese to immigrate to the island.
As for worries about mainland investors monopolizing markets and manipulating prices, the premier reiterated that the Taiwan government will evaluate every application from mainland investors for capital size, business type and possible impact. Any project deemed to have negative bearings on local businesses will not be approved.
To illustrate the limited impact mainland investors would have on Taiwan's market, Premier Jiang referred to the local Chinese medicine wholesale industry, which became open to mainland investors on June 30, 2009. Of the 464 wholesalers now operating in Taiwan, only one is from the mainland and its capital a mere NT$2.1 million (US$70,234). In addition, the government has only opened this market to mainland wholesalers; retailers and manufacturers have not been and will not be allowed in the future.
"With the signing of the cross-strait services trade agreement, not only will our businesses have greater opportunities to expand into the mainland but they can also have more confidence in the future of Taiwan's services industry," noted the premier. "We are not afraid to open up, as it will make our businesses stronger and more competitive."
The premier then visited the Laundry Business Association of the ROC located in a dry cleaning store in downtown Kaohsiung. Regarding the store owner's suggestion to resume the international laundry equipment exhibitions discontinued some 20 years ago, the premier directed the Ministry of Economic Affairs to plan some sort of laundry raw materials conference that will help operators upgrade their businesses.
Next, Premier Jiang headed for the leading online game company Soft-World International Corp., where he toured the music production center and tried his hand at the latest games. Jiang said the cross-strait services pact will profit Taiwanese gaming companies by significantly reducing the application time for entering mainland China. The mainland market can also serve as a medium for Taiwan to demonstrate its soft power to the world.
In the evening, Jiang spoke at a public event held by the Mainland Affairs Council at the City God Temple in Zuoying District. Again, he made it clear that the pact will boost services output and help the overall economy by bringing in overseas investment dollars and creating local jobs. As for laborers in more sensitive sectors, the government has already instituted protective measures and guidance mechanisms to safeguard their working rights.
Taiwan's economic prosperity is dependent on external trade, the premier continued. Market opening, liberalization and globalization are necessary to "bring the world to Taiwan and take Taiwan into the world." This was exemplified in the economic cooperation agreement signed by Taiwan and New Zealand earlier this month, in which both sides made commitments to open up their goods, services and investment markets.
"Similarly with the cross-strait pact, if we do open part of our services industry to mainland investment, we need not fear because our industries have strong foundations and we offer quality services," he said.