Taiwans minister: EFCA-avtalet resulterar inte i obalanserad handel med Kina

Den 13 juni svarade minister Yiin Chii-ming, Republiken Kina (Taiwan), skriftligt på den kritik som framförts under ett seminarium i Taipei för att markera ettårsdagen av ECFA-avtalets undertecknande. Ministern påpekade att flera av de problem som tagits upp av deltagarna, som att ekonomin drabbas av urholkning och obalans i handeln med fastlandet, i själva verket förekom långt innan att överenskommelsen undertecknades och innan avtalet trädde i kraft.

Taiwan Minister defends nation's economic progress

Published: 2011/6/17

Minister without Portfolio Yiin Chii-ming on June 13 responded in writing to criticisms made in a seminar held recently in Taipei to mark the one-year anniversary of the signing of the Cross-Straits Economic Cooperation Framework Agreement (ECFA). The minister pointed out that many of the issues the participants brought up—such as the economy suffering a hollowing-out and imbalanced trade with the mainland—in fact occurred long before the accord, signed June 29, 2010 and taking effect last September 12.

"Perhaps it is time that people figure out who is responsible for the hardships they suffered the past few years and the hollowing-out of Taiwan's economy," Yiin wrote.

Annual economic growth, Yiin noted, averaged 6.1 percent between 1992 and 1999. Following the nation's first transfer of power in 2000 through 2007, growth averaged only 4.4 percent, weakest among the Four Asian Tigers. For the time that President Ma Ying-jeou has been in office, Taiwan recorded average annual growth of 3.2 percent. This is remarkable given the global economic downturn. The president and his team, Yiin said, should be credited for this achievement.

From 1992 to 1999, Yiin continued, on average each year 47,280 companies were established, a number that fell 17 percent to 39,027 in the 2000-2007 period. As for company closures, the annual average from 1992 to 1999 was 21,898, which skyrocketed 73 percent to 37,806 for the 2000-2007 period. Yiin questioned how ECFA opponents would explain such a contrast.

This overall decline in the business climate has also affected investment, Yiin stated. Gross fixed investment as a percentage of GDP averaged 25.6 percent between 1992 and 1999. It slipped 16 percent to 21.5 percent for 2000-2007.

Turning to production, Yiin showed that in 2000, only 13.3 percent of manufacturing by Taiwan's businesses was done overseas, but this had leapt to 46.1 percent by 2007. Taiwan's last notebook computer production line closed down in 2006. Statistics from the very next year show that very few high-tech products made by Taiwan's companies were being manufactured locally.

Because of these trends, jobs went elsewhere. In May 2000, the unemployment rate was 2.78 percent, representing 271,000 people. The figure had climbed to 3.84 percent, or 416,000 people, by May 2008, a rise of 53.5 percent.

Salaries stagnated as a result. In May 2000, the average monthly salary in the manufacturing and service industries stood at NT$37,846 (US$1,231). By May 2008, that figure had edged up only slightly to NT$40,590 (US$1,326). This 7.3-percent rise stands in sharp contrast to the 38.9-percent increase seen between May 1992 and May 2000 from a base of NT$27,250 (US$1,090).

Note: The Kuomintang was in power prior to 2000, while the Democratic Progressive Party's Chen Shui-bian was president from 2000-2008. The KMT's Ma Ying-jeou was inaugurated as president for a four-year term in 2008.