Tai­wan can­not avoid main­land mar­ket

China Daily (USA) - - VIEWS -

To some ex­tent, it is rea­son­able that Tai­wan should ad­just its role in re­gional devel­op­ment and global sup­ply chains, given the in­dus­trial trans­for­ma­tion of the Chi­nese main­land and the main­land’s trade war with the United States.

The main­land has played an im­por­tant role in the is­land’s in­dus­trial lay­out, par­tic­u­larly for Tai­wan pro­cess­ing com­pa­nies. But the main­land’s eco­nomic devel­op­ment has reached a turn­ing point and is un­der­go­ing trans­for­ma­tion, which re­quires more in­vest­ment in en­vi­ron­men­tal pro­tec­tion and higher wages for work­ers, caus­ing in­creas­ing pro­duc­tion costs for the main­land’s man­u­fac­tur­ers. There­fore, for lower costs, some over­seas com­pa­nies are con­sid­er­ing leav­ing the Chi­nese main­land for Asian coun­tries with cheaper la­bor.

Mean­while, the trade war the US has in­sti­gated against the main­land, in which the US has im­posed wide-rang­ing high tar­iffs on Chi­nese ex­ports, has harmed those com­pa­nies on the is­land with main­land in­vest­ments.

Tai­wan has to pre­pare for in­creas­ing chal­lenges to its econ­omy, it needs to co­op­er­ate with ad­vanced en­ti­ties in high-end in­no­va­tion and ex­pand co­op­er­a­tion Shen Dingli, pro­fes­sor at the In­sti­tute of In­ter­na­tional Stud­ies, Fu­dan Univer­sity

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