Hub to the main­land

Austin American-Statesman - - OPINION -

Re: July 12 ar­ti­cle “Hu hails China-Tai­wan trade pact.”

The ar­ti­cle fo­cuses on the re­cent agree­ment across the Tai­wan Strait, how­ever it is im­por­tant to note that this pact has a far more in­ter­na­tional sig­nif­i­cance.

The trade agree­ment be­tween Tai­wan and China ini­ti­ated ma­jor tar­iff re­duc­tions for 539 Tai­wanese goods en­ter­ing China, fur­ther in­creas­ing ac­cess to their mar­kets. The agree­ment has also helped to quell hos­til­i­ties across the Tai­wan Strait by fo­cus­ing on eco­nomic growth in the re­gion.

The abil­ity to in­crease ex­ports to China through Tai­wan is ex­tremely ben­e­fi­cial to in­ter­na­tional busi­nesses be­cause of Tai­wan’s strate­gic lo­ca­tion in the Western Pa­cific.

Tai­wan’s role as a hub to the main­land will rely on its abil­ity to bro­ker se­cure re­la­tions for busi­nesses while cre­at­ing re­gional free trade zones. Cur­rently, Tai­wan pro­vides com­pa­nies low in­come tax rates as well as other in­cen­tives to con­duct busi­ness in China through Tai­wan.

Michael lin


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