Clearing the Hurdles to Cross Strait Business Collaboration

C.Y. Huang argues that the two-way economic benefits for Taiwan and China will not be fully realized if the Taiwan government continues to restrict China-sourced investment into Taiwan, especially in high-tech "tomorrow industries."  PRC investors want to invest in Taiwan but face huge regulatory barriers.  Chinese companies wish to invest in Taiwan and contribute to the local social and economic development, but this is currently restricted by Taiwan government policy.  As a result of six decades of China’s aggressive and antagonistic government policies towards Taiwan, the attitude of Taiwan’s government is fear of China.  A relationship based on fear is not productive for either side.

Mr. Huang suggests that combining Taiwan‘s technologies and managerial expertise with China’s capital resources and consumer base will deliver benefits to the people on both sides of the Taiwan Strait and the world economy.  While ECFA symbolizes a significant Cross Strait development, in reality only 192 industry sectors are currently open to PRC investment in Taiwan and most of them are low value-added, manufacturing industries such as textiles and home appliances. PRC investors are more interested in high tech industries with future growth potential, such as LED, electric cars and cloud computing. Building mutual trust is both predicated on and enhanced by allowing both sides to build and share economic progress.