Taiwan-China pact to reduce tariffs takes effect

TAIPEI, Taiwan (AP) -- A pact that will reduce tariffs on hundreds of products traded between Taiwan and China took effect Sunday, a significant step for the Taiwanese president's efforts to forge closer trade ties with Beijing.

The Economic Cooperation Framework Agreement both sides signed in late June also lets Taiwanese firms enter banking and insurance markets in China to further boost bilateral trade that amounts to $110 billion annually.

Taiwan's Cabinet-level Mainland Affairs Council and China's Ministry of Commerce announced the effective date of the pact on their websites Saturday, starting the tariff-reducing process....

Taiwanese President Ma Ying-jeou has hailed the pact as necessary to prevent Taiwan's economic marginalization as Beijing strengthens its commercial ties to its Asian neighbors and has said it would help reduce tensions between the island and mainland China.

On Saturday, China's Ministry of Commerce highlighted the pact's paramount role in stimulating bilateral trade exchanges.

"We believe the implementation of the pact will further promote exchanges and cooperation in cross-strait trade and help cross-strait economies develop together," Spokesman Yao Jian said in the statement on the ministry's website....

In my own opinion, I suspect that the decades ahead will see greater moves towards the peaceful reunification of Taiwan with China; at least towards greater economic unity, at a minimum.

I don't know if this is something the US Government can attempt to prevent, or even if it would be wise to try.

I hope that the Defense Department will exercise caution, however, when it comes to selling Taiwan our very most advanced weapons. AA guns and missiles to keep China from trying to force the reunification question, fine. But let's be careful about selling them any Raptors.

"A pact that will reduce tariffs on hundreds of products traded between Taiwan and China took effect Sunday"

Reunification has begun.

How this will play out exactly is a big unknown, but my guess is it will happen quickly.

Taiwan will become an SAR of China, like Hong Kong. HK still has its own laws, currency, passports, restrictions, etc (for example, a PRC citizen still needs a special visa to enter HK; a US citizen can enter HK with just their passport, but needs a visa to enter PRC). Taiwan will end up like that, probably in 15 years...

3 posted on 09/12/2010 9:41:12 AM PDT by PugetSoundSoldier (Indignation over the Sting of Truth is the defense of the indefensible)

Your suspicions make a lot of sense. China probably wouldn't mind the Taiwanese enjoying a little local autonomy -- under the watchful eye of Beijing, of course -- so long as they're firmly in China's economic and military orbit.

Good post.

Thanks... I’ve been living 6+ months a year in China for the last several years.

Beijing’s gotten VERY smart - they let HK and Macau run essentially autonomously, and have loosened many larger cities/regions (Shanghai, Tianjin, Qingdao, Xiamen) to the point of being nearly SARs themselves.

China’s learned a lot from the past, and does what works. If only our own current leaders would do the same!

5 posted on 09/12/2010 10:56:30 AM PDT by PugetSoundSoldier (Indignation over the Sting of Truth is the defense of the indefensible)

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