The cross-strait service trade agreement is a “perfect political agreement” to bring Taiwan into China’s fold and presents no economic benefits to Taiwan, US academic John Tkacik said.
Tkacik, senior fellow at the Virginia-based International Assessment and Strategy Center, made the remarks on Saturday at a forum in Taipei hosted by the World Taiwanese Congress and the Taiwan National Alliance.
The cross-strait service trade pact, signed in June last year, and the Economic Cooperation Framework Agreement (ECFA) signed in 2010 are incomparable with other trade agreements Taiwan holds with other nations, such as the Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Cooperation (ANZTEC) or the Agreement between Singapore and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Partnership (ASTEP), said Tkacik, a retired US diplomat with 35 years of service in Taiwan, China and Mongolia.
ASTEP and ANZTEC were signed under the WTO framework and enjoyed legal protection such as third party mediation and other resolutions and the equal stature of WTO members ensured a real increase in Taiwan’s export, whereas the cross-strait service trade agreement does not fall under such a category of trade agreements, he said.
The tertiary sectors in Taiwan and China are fundamentally different; the Chinese government is heavily involved in all of its tertiary sector, leading to a larger scale and more xenophobia, while the Taiwanese tertiary sector is smaller, but more vibrant, Tkacik said.
Chinese industries opened to Taiwan in the agreements are in Fujian Province and are excessively restricted, Tkacik said, adding that this observations led him to believe the Chinese were simply treating Taiwan as an extension of Fujian Province.
The more competitive Taiwanese financial industry would only exert minimal influence on its Chinese counterpart, Tkacik said.
Chinese investors would hold off investments in printing and electronic businesses due to the many restrictions, but Taiwanese middle-class economy would still be heavily impacted, he said.
In response to media inquiries, Tkacik said that only a few would benefit from the service trade agreement despite the seemingly rising number of Taiwanese businesspeople asking the government to ratify the agreement.
Taiwan as a whole would suffer if the agreement was ratified, Tkacik said, adding that he was perplexed why Taiwanese businesspeople needed more liberty when there is a far more illberal investment environment in China than other nations.
On President Ma Ying-jeou (馬英九) administration’s claims that the service trade agreement would help Taiwan’s bid to join the Trans-Pacific Partnership (TPP), Tkacik said the opposite would probably be true as the service trade agreement would only muddy waters on increased economic integration between Taiwan and the US due to the pact’s lack of transparency.
It may cause the US to reconsider whether Taiwan would be China’s backdoor into the US market, Tkacik added.
Legislative committees on Wednesday began a joint review of the pact, but no progress has been made.
More confrontations are expected when the legislature tries to continue the review this week.
EXPRESSING GRATITUDE: Without its Taiwanese partners which are ‘working around the clock,’ Nvidia could not meet AI demand, CEO Jensen Huang said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and US-based artificial intelligence (AI) chip designer Nvidia Corp have partnered with each other on silicon photonics development, Nvidia founder and CEO Jensen Huang (黃仁勳) said. Speaking with reporters after he met with TSMC chairman C.C. Wei (魏哲家) in Taipei on Friday, Huang said his company was working with the world’s largest contract chipmaker on silicon photonics, but admitted it was unlikely for the cooperation to yield results any time soon, and both sides would need several years to achieve concrete outcomes. To have a stake in the silicon photonics supply chain, TSMC and
SILICON VALLEY HUB: The office would showcase Taiwan’s strengths in semiconductors and artificial intelligence, and help Taiwanese start-ups connect with global opportunities Taiwan has established an office in Palo Alto, one of the principal cities of Silicon Valley in California, aimed at helping Taiwanese technology start-ups gain global visibility, the National Development Council said yesterday. The “Startup Island Taiwan Silicon Valley hub” at No. 299 California Avenue is focused on “supporting start-ups and innovators by providing professional consulting, co-working spaces, and community platforms,” the council said in a post on its Web site. The office is the second overseas start-up hub established by the council, after a similar site was set up in Tokyo in September last year. Representatives from Taiwanese start-ups, local businesses and
‘DETERRENT’: US national security adviser-designate Mike Waltz said that he wants to speed up deliveries of weapons purchased by Taiwan to deter threats from China US president-elect Donald Trump’s nominee for US secretary of defense, Pete Hegseth, affirmed his commitment to peace in the Taiwan Strait during his confirmation hearing in Washington on Tuesday. Hegseth called China “the most comprehensive and serious challenge to US national security” and said that he would aim to limit Beijing’s expansion in the Indo-Pacific region, Voice of America reported. He would also adhere to long-standing policies to prevent miscalculations, Hegseth added. The US Senate Armed Services Committee hearing was the first for a nominee of Trump’s incoming Cabinet, and questions mostly focused on whether he was fit for the
SHARED VALUES: The US, Taiwan and other allies hope to maintain the cross-strait ‘status quo’ to foster regional prosperity and growth, the former US vice president said Former US vice president Mike Pence yesterday vowed to continue to support US-Taiwan relations, and to defend the security and interests of both countries and the free world. At a meeting with President William Lai (賴清德) at the Presidential Office in Taipei, Pence said that the US and Taiwan enjoy strong and continued friendship based on the shared values of freedom, the rule of law and respect for human rights. Such foundations exceed limitations imposed by geography and culture, said Pence, who is visiting Taiwan for the first time. The US and Taiwan have shared interests, and Americans are increasingly concerned about China’s
RSS