Taiwan exports to mainland booming after ECFA (2)
Taiwan exports to mainland booming after ECFA (2)
08:49, July 01, 2011 
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Benefiting the wider economy, but small firms in particular
Lai Shin-Yuan, head of Taiwan's mainland affairs department, told a press conference Tuesday that Taiwan's economy has benefited from the ECFA and the public generally felt positively about it.
Since the ECFA was signed, Taiwan's unemployment rate had dropped, hitting 4.27 percent in May, which was the lowest level in 33 months.
The average monthly payment from January to April in Taiwan reached NT$52,505 ($1,849) per capita, 18 percent higher than the annual average figure last year.
The World Competitiveness Yearbook, published by the International Institute for Management Development (IMD) in Lausanne of Switzerland, raised the ranking of Taiwan's economy from the eighth in world in 2010 to sixth in 2011.
According to the island's economic department, economic growth of Taiwan was 10 percent in 2010 and private investment increased by 33 percent from 2009.
Bill Wiseman, chairman of the American Chamber of Commerce in Taipei, told Xinhua that the ECFA had been "extremely successful."
Due to the close cultural and language links across the Taiwan Strait, a number of companies can use Taiwan as a platform to enter the mainland or increase sales there, Wiseman said.
"Japanese companies seemed to have capitalized on this," he said. "Japanese are quite a bit ahead of American multinationals, in terms of using ECFA as a platform to enter the mainland market."
Taiwan has about 1.23 million small and medium-sized companies, accounting for 98 percent of the total.
The export increase after ECFA was implemented has largely benefited small firms, said Roscher Lin, chairman of Taiwan Association of Small and Medium-sized Enterprises.
Since the mainland has become a huge consumer market with the increasing personal incomes, a large number of small firms in Taiwan, which used to export to Europe and North America, have turned to the mainland, Lin said.
"The tariff cut in the early harvest program has given Taiwan suppliers a sharp advantage in the competition with other foreign companies," he said.
The ECFA also created a favorable policy environment for both mainland and Taiwan companies to invest in each other's side, he added.
Under the ECFA, the mainland also opened 11 service sectors to Taiwan companies including accounting, computer services, hospitals, banking, securities, insurance and film industry.
"Companies have seen a good chance to invest in service sectors in more developed coastal regions on the mainland," Lin said.
The computer manufacturing and IT industries, though not substantially covered by the ECFA, have seen positive industry cooperation across the Strait.
"As far as I know, several big mainland companies are planning to set up research and development centers in Taiwan due to skilled computer engineers in Taiwan," said Chang Li, deputy secretary general with the overseas and industry service division of Taipei Computer Association.
Flat screen producers in Taiwan are also thinking of moving the manufacturing of large-sized screens to the mainland while focusing on developing more edgy small screens, Chang said.
Lu Hsin-chang, expert with the College of Management, Taiwan University, told Xinhua that the ECFA showed the two sides of the Strait were capable of maintaining peaceful long-term relations and thus gave confidence to both domestic and foreign investors.
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Source:Xinhua
Lai Shin-Yuan, head of Taiwan's mainland affairs department, told a press conference Tuesday that Taiwan's economy has benefited from the ECFA and the public generally felt positively about it.
Since the ECFA was signed, Taiwan's unemployment rate had dropped, hitting 4.27 percent in May, which was the lowest level in 33 months.
The average monthly payment from January to April in Taiwan reached NT$52,505 ($1,849) per capita, 18 percent higher than the annual average figure last year.
The World Competitiveness Yearbook, published by the International Institute for Management Development (IMD) in Lausanne of Switzerland, raised the ranking of Taiwan's economy from the eighth in world in 2010 to sixth in 2011.
According to the island's economic department, economic growth of Taiwan was 10 percent in 2010 and private investment increased by 33 percent from 2009.
Bill Wiseman, chairman of the American Chamber of Commerce in Taipei, told Xinhua that the ECFA had been "extremely successful."
Due to the close cultural and language links across the Taiwan Strait, a number of companies can use Taiwan as a platform to enter the mainland or increase sales there, Wiseman said.
"Japanese companies seemed to have capitalized on this," he said. "Japanese are quite a bit ahead of American multinationals, in terms of using ECFA as a platform to enter the mainland market."
Taiwan has about 1.23 million small and medium-sized companies, accounting for 98 percent of the total.
The export increase after ECFA was implemented has largely benefited small firms, said Roscher Lin, chairman of Taiwan Association of Small and Medium-sized Enterprises.
Since the mainland has become a huge consumer market with the increasing personal incomes, a large number of small firms in Taiwan, which used to export to Europe and North America, have turned to the mainland, Lin said.
"The tariff cut in the early harvest program has given Taiwan suppliers a sharp advantage in the competition with other foreign companies," he said.
The ECFA also created a favorable policy environment for both mainland and Taiwan companies to invest in each other's side, he added.
Under the ECFA, the mainland also opened 11 service sectors to Taiwan companies including accounting, computer services, hospitals, banking, securities, insurance and film industry.
"Companies have seen a good chance to invest in service sectors in more developed coastal regions on the mainland," Lin said.
The computer manufacturing and IT industries, though not substantially covered by the ECFA, have seen positive industry cooperation across the Strait.
"As far as I know, several big mainland companies are planning to set up research and development centers in Taiwan due to skilled computer engineers in Taiwan," said Chang Li, deputy secretary general with the overseas and industry service division of Taipei Computer Association.
Flat screen producers in Taiwan are also thinking of moving the manufacturing of large-sized screens to the mainland while focusing on developing more edgy small screens, Chang said.
Lu Hsin-chang, expert with the College of Management, Taiwan University, told Xinhua that the ECFA showed the two sides of the Strait were capable of maintaining peaceful long-term relations and thus gave confidence to both domestic and foreign investors.
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Source:Xinhua
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（Editor：刘晓宁）
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