CEPA seen as win-win for mainland, Taiwan
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The first big trade initiative between China's mainland and Taiwan will usher in mutual benefits for each, said Zhu Yunlai, president of China International Capital, at the Boao Forum for Asia 2010.
Zhu was speaking at a roundtable meeting, "Opportunities Arising from the Closer Economic Partnership Arrangement."
Taiwan, a relatively small market, can't depend on its own consumption for its economic problems. By cooperating with the mainland, it could broaden its market, while the mainland can upgrade its industrial structure and sharpen its competitiveness by cooperating and competing with Taiwan, Zhu said.
The CEPA is a broad economic pact further normalizing trade and investment ties across the Taiwan Strait. Both sides are trying to finalize negotiations quickly to keep pace with the growing number of business and trade exchanges.
Zhu said that while Taiwan's exports shrank in 2009, its export to the mainland increased 9 percent to 42 percent of its total exports.
Taiwan is mainland's fifth largest importer. Its investment in the mainland is more than US$50 billion, involving 80,000 projects.
Zhu said cross-Straits cooperation is essential, especially during the global economic recession.
Fredrick Chien, top advisor of Taiwan-based Cross-Straits Common Market Foundation, embraced the CEPA. More, closer business and trade cooperation and exchanges will be seen in the future, he said.
Entrepreneurs at the meeting also believed that CEPA will create business for them. Wei Jiafu, president of COSCO, said he hoped the CEPA will further expand direct-link ports and allow shipping companies to set up branches in both the mainland and Taiwan.
Wei said that both sides will have more room for cooperation in trade, investment, shipping and logistics because the CEPA will give investors a more secure investment policy and that Taiwanese businessmen could shift to long-term strategies.
CEPA will also promote exchanges of human resources and technology, Wei said.
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