While Korea does its best to be outstanding in the Asia Four Dragons, Taiwan may become out of it because of financial administrators’ fairy tales.
America and Korea concluded with the Free Trade Agreements ; however, the financial administrators said “this does not effect the technology industry of Taiwan, GDP decreased merely 0.05 percent,” “this only had effect upon five percent export from Taiwan to America,” moreover, organizations close to the government party also expressed “at most, there will be no financial improvement at all for one year.”This matches administrators’ reply to the situation that the CNP of Taiwan was overwhelmed by it of Korea; that is, “this resulted from the appreciation of won, and there’s nothing to do with each other’s competitiveness.”Do the administrators really have no idea about its seriousness?Or, the professional administrators also participated in telling the fairy tales and ignored the financial alarm that Taiwan is facing with.
<> Concluding FTA makes America and Korea decreased customs bilaterally; thus, part of the export from Taiwan will be replaced by Korea.In addition, because of the reduced merchandise moving costs, the investment and technical cooperation between them will presumably be much tighter.This will not only enlarge the gap in the additional value of manufacturing industry that Taiwan already fell behind, but also replace Taiwan from the global division of labor.Besides, more capital will be in Korea and regional economic integration will sooner be established.After America and Korea concluded FTA, mainland China and European Union instantly showed that they hope to negotiate with South Korea about FTA.Meanwhile, Japan and Korea also started negotiating again.Resulted from relative pressure, other economic systems will be integrated faster, too.How can this be seen as merely an effect upon five percent export from Taiwan to America?
<> As far as Taiwan’s economical difficulties are concerned, the Su Government prompted “great investment, great warmth” plan, which provides many policies that least-developed countries utilize.For example, “free for four, half for six,” “006688 project” towards rent that are similar to the tongue twisters used to attract foreign investors by mainland China.It’s wondering that mainland China gradually annul these kind of policies for understanding limited resources should not be used cheaply; nevertheless, with less land, Taiwan decided to go backwards and follow least-developed countries?
<> The manufacturing industry in Taiwan has excellent foundation.Although manufacturing factors are more expensive than mainland China, Taiwan is a mature managed environment with democracy, law, and multiple developments.It will help Taiwan turn to be a high value economic system once if it can effectively associate with mainland China.Rather, decreasing the cost of rent and physical labor is used to resist the cheap resources of mainland China.This makes the earnings and rent of Taiwan follow the least-developed countries and pushes itself into a “factor price equalization” situation.
When it comes to the other three Asia dragons, Hong Kong turned from resistance to actively welcome tourists, businesses, and capitals from mainland China, and then successfully won the position of Asia financial center as well as positively developed service industry.Singapore not only invited superior people from all over the world, but also opened gambling industry to gain tourism earnings.Korea took advantages of mainland China thoroughly, grasped the markets and resources of BRICs, and energetically allied with developed countries to make an overall arrangement toward the world.
There was a reporter who asked the former premier of Korea about getting rid of being the last in the Asia Four Dragons.The former premier replied “when mention Korea, I hope that everyone can think about Japan instead of Asia Four Dragons.”When concerning about the active behaviors of other three dragons, it’s a worry that being the last of Asia Four Dragons, Taiwan may be “out of it” because of the fairy tales from the government.