Premier Lin Chuan today met with The Heritage Foundation founder Dr. Edwin J. Feulner, Jr. to exchange views regarding a Taiwan-U.S. free trade agreement (FTA) and further diversification of bilateral ties and industrial cooperation.
The premier noted that mainland Chinese obstructionism has hampered Taiwan's efforts to sign FTAs with other countries, so the successful signing of FTAs with the U.S. and Japan would help overcome mainland pressure and make other countries more willing to enter similar agreements. Signing an FTA with the U.S. has thus become an important goal.
A Taiwan-U.S. trade agreement would have great strategic significance, the premier said. He cited U.S. memory maker Micron's acquisition of Taiwan's Inotera as a prime example, taking advantage of the efficiency, flexibility, responsiveness and reasonable cost structures of Taiwan's industrial sector, advantages that few countries can match. Micron, although strong in research and development (R&D) and marketing channels, was previously unable to compete with its South Korean rivals. But by leveraging Taiwan's well-known manufacturing quality and efficiency through its acquisition of Inotera, Micron was able to propose a massive new investment in plant expansion. This confirms that combining Micron's R&D and channel advantages with Taiwan's manufacturing prowess can expand markets.
Taiwan has many companies with world-renowned manufacturing capabilities that need partners, the premier continued. If these companies can access marketing channels to tap into the U.S. market, teaming up with U.S. companies to manufacture those products that demand flexibility and customization, such products will gain a significant competitive edge. This would also avoid the risk of mainland Chinese manufacturers colluding to divide and dominate the market.
In response to Dr. Feulner's comments on government efficiency, the premier said that the American Chamber of Commerce in Taipei has had a positive response to government efforts to improve market access and the investment environment. He also stated that the government is well aware of the importance of foreign investment in Taiwan, and will actively help foreign investors resolve any issues that crop up. There is tremendous developmental potential for foreign investors in emerging industries like green energy and the digital economy, the premier said, which also creates a significant number of job opportunities and a win-win outcome.