Taiwan is not becoming overly reliant on the mainland Chinese market following the signing of the cross-strait Economic Cooperation Framework Agreement last year, Deputy Minister of Economic Affairs Lin Sheng-chung said June 8.
Lin was responding to the American Chamber of Commerce in Taipei’s white paper issued earlier the same day in which it cautioned Taiwan of “the risk of overdependence on any single export destination” to fuel economic growth.
In the annual paper, AmCham claimed that the mainland market was responsible for half of Taiwan’s economic growth in 2010.
Lin noted that 8.48 percentage points of Taiwan’s 10.88 percent economic growth last year was attributable to domestic demand, while foreign trade only contributed 2.4 percentage points to that growth.
In addition, he said Taiwan’s bilateral trade with mainland China (including Hong Kong) accounted for 40.9 percent of the country’s total trade in the first four months of 2011, down 0.9 percentage points from the figure of 41.8 percent for 2010, when ECFA was inked.
He also pointed out that Taiwan’s trade with the Association of Southeast Asian Nations comprised 13.33 percent of the country’s total trade volume for 2009, rising to 13.47 percent in 2010, indicating one example of greater balance in terms of sources of foreign trade.
AmCham’s white paper pointed to several other challenges facing Taiwan’s prospects for future economic development, including the need for removal of “barriers to living and working in Taiwan for foreign professionals.”
In response, the Council for Economic Planning and Development said the government has recently expanded efforts to make it easier for international enterprises to invest and conduct business in Taiwan, and to attract outstanding talent to study or work.
The CEPD pointed to the recent relaxation of regulations concerning Taiwanese born overseas applying for residency in the country as an example. It said the new measure benefits skilled second-generation Taiwanese individuals living abroad who want to enter the local job market.
