Hub to the mainland
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.