Tai­wan may trail S. Korea with­out AIIB en­try

The China Post - - TAIWAN BUSINESS -

Tai­wan may fall be­hind its arch ri­val South Korea in trade devel­op­ment if it fails to join multi­na­tional or­ga­ni­za­tions such as the pro­posed China- led Asian In­fra­struc­ture In­vest­ment Bank (AIIB), a lo­cal econ­o­mist said Wed­nes­day.

Wu Chung-shu, pres­i­dent of the Chung-Hua In­sti­tu­tion for Eco­nomic Re­search (CIER,

), ad­vised that Tai­wan par­tic­i­pate more ac­tively in re­gional eco­nomic in­te­gra­tion to ex­pand its for­eign trade op­por­tu­ni­ties.

Tai­wan needs to be­come more open in its trade and eco­nomic devel­op­ment oth­er­wise it may lag be­hind South Korea, Wu said, ad­dress­ing public con­cerns over China’s in­flu­en­tial role on Tai­wan’s bid to join the AIIB.

South Korea has par­tic­i­pated in many re­gional or­ga­ni­za­tions and an­nounced March 26 that it will seek to be­come a found­ing mem­ber of the China-led AIIB, de­spite Wash­ing­ton’s mis­giv­ings, which Wu said was a de­ci­sion made in con­sid­er­a­tion of fu­ture global trade in­te­gra­tion trends.

Liang Kuo-yuan, pres­i­dent of the Yuanta-Po­laris Re­search In­sti­tute ( ), said that Tai­wan should cau­tiously eval­u­ate the eco­nomic benefits of join­ing the AIIB, in­clud­ing op­er­a­tional trans­parency.

Tai­wan needs a com­pre­hen­sive as­sess­ment of the po­lit­i­cal and eco­nomic re­la­tion­ships among mem­ber coun­tries be­fore par­tic­i­pat­ing in any in­ter­na­tional or­gani- za­tion, and Tai­wan can learn from the ex­pe­ri­ence of Sin­ga­pore about how to “sur­vive in a tight cor­ner,” Liang said.

Ini­ti­ated by China, the AIIB is re­garded by some as a po­ten­tial ri­val to the In­ter­na­tional Mon­e­tary Fund, the World Bank and the Asian Devel­op­ment Bank, all of which are in­sti­tu­tions dom­i­nated by de­vel­oped coun­tries such as the U.S.

The AIIB will aim to sup­port in­fra­struc­ture devel­op­ment projects in Asia and is ex­pected to be set up by the end of this year.

The ap­pli­ca­tion win­dow for found­ing membership ex­pired at mid­night Tues­day, and China’s of­fi­cial fig­ures put the num­ber of coun­tries ap­ply­ing to join at 46 so far.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.