A blogger for Bloomberg News doubts that Taiwan’s estimated economic gain from the proposed treaty is worth the risk. What Has Taiwan Gotten for Cozying up to China? Not Much. 5 APR 10, 2014 2:37 AM EDT By William Pesek, BloombergView bloombergview/articles/2014-04-10/what-has-taiwan-gotten-for-cozying-up-to-china-not-much Pesek writes “So, you live in a proud, thriving and affluent democracy of 23 million people that many less developed places view as a role model. How much of your hard-won autonomy would you be willing to give up for 0.4 percentage points of growth? … Bank of America predicts Taiwans economy will grow 2.5 percent without the pact, compared to 2.9 percent if its approved. The idea that Taiwan is doomed without the services deal is hyperbolic nonsense. … But what exactly has Ma gotten in return for cozying up to China these last six years? Considerably less than others. Since Ma took office in 2008, Taiwan has seen a roughly 55 percent rise (as of the end of 2013) in the amount of goods flowing to the mainland. That lags the roughly 75 percent surge South Korea has enjoyed. Gains elsewhere are even more impressive: 98 percent for the European Union; 101 percent for Russia; 119 percent for the U.S.; and an astounding 282 percent for Australia. Only Japan fared worse than Taiwan with a 21 percent increase in goods to China. Ma argues that Taiwan needs this services-industry deal to raise its share. But why didnt he instead use the last six years to diversify his economy, unleash fresh waves of innovation and negotiate free-trade deals elsewhere? … The students who commandeered the legislature for weeks in their answer to Occupy Wall Street are right to worry about giving China undue influence over their government. In Taiwan, no economic deal with China is just an economic deal. Taiwanese companies arent only competing with Chinese firms, but with the Communist Party and its roster of state-supported national champions. … Gross domestic product is the driving force behind any government. Is 0.4 percent of GDP really worth it for democratic Taiwan to subsume itself in the Communist Party-juggernaut? The student protesters who are demanding a time out to make sure their $355 billion economy doesnt become a rounding error in Chinas $8.2 trillion one have a valid point. “
Posted on: Sat, 12 Apr 2014 10:28:18 +0000
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