67-year-old Vincent C. Siew, or Xiao Wanchang, former head of
Taiwan's Executive Council, addressed a Chinese mainland and Taiwan
forum on June 27 in Nanning, southwest China's Guangxi Zhuang Autonomous Region, and
reiterated his concept of a cross-Straits common market, an idea he
proposed in 2001.
In May 2005, President Hu Jintao, also general secretary of the
Communist Party of China (CPC) and Lien Chan, then chairman of the
Kuomintang (KMT), Taiwan's largest opposition party, held a
historic meeting in Beijing. The two sides agreed to give priority
to cross-Straits common market discussions after official
negotiations between the mainland and Taiwan are normalized.
Siew, board chairman of the Chung-Hua Institution for Economic
Research and Cross-Straits Common Market Foundation, travels
regularly between the mainland and Taiwan to advocate his
proposal.
21st Century Business Herald (CBH), a Guangzhou-based
publication, interviewed Siew who expounded on his concept. The
following are key excerpts of that interview which was published on
July 1.
CBH: What exactly is your proposed cross-Straits common
market?
Siew: I was enlightened by the success of the
European Common Market, which is why I put forward this concept. An
ideal cross-Straits common market includes not only the mainland
and Taiwan, but also Hong Kong and Macao.
CBH: In the early 1990s,
Chinese-American professor Zheng Zuyuan proposed the concept of a
"Greater China Economic Zone". What are the similarities and
differences between this and your proposal?
Siew: Things are quite different now because of
the changes that have developed in terms of time and place. In the
early 1990s, China was in the initial stages of its market economy.
It hadn't been fully integrated into the international arena. Now,
if the mainland and Taiwan set up an economic common market, it
will be good for the peaceful development of the two. The rest of
the Asia-Pacific region and the international community will be
delighted to see this happen. With over a decade's worth of
development, the economies of both sides have moved in an
integrated and cooperative direction. A common market could well
serve their interests.
CBH: Where do you think this common market will make a
breakthrough?
Siew: Both sides now take a more pragmatic view
of it and are getting to know each other's concerns. Both should
start from common interests and language, and lay emphasis on
economic issues.
CBH: The Northeast and Southeast Asian regions have
continued to deepen economic coordination and cooperation in recent
years. Where does Taiwan fit in? There are concerns that Taiwan
might be marginalized during regional economic
integration.
Siew: Taiwan needs to solve the problem on its
own, but East Asian countries, including the mainland, should give
it a hand. Many Taiwan enterprises play a very important role in
regional industrial chains. They are manufacturing and selling many
products. The industrial chains will be broken if Taiwan is
excluded.
CBH: Have you set a timetable for this common
market?
Siew: I think that it would be established step
by step, rather than in one leap. Only after over 50 years of
development did the EU finally come into being. ASEAN has yet to
form a common market despite its 40-year history. I hope that the
cross-Straits common market will not take such a long time to
establish. Although we have different economic systems, we are of
the same origin and share the same language.
CBH: What is your proposed road map?
Siew: First, bilateral trade ties should be
normalized. In view of the frequent exchanges across the Taiwan
Straits, current indirect transport links are an obstacle and
increase operation costs. It is not a normal thing. The mainland
has put forward a law to protect the interests and rights of Taiwan
businesspeople on the mainland, but it doesn't engage in direct
contact with the Taiwan authorities. For example, both sides need
to negotiate on tax exemption. For example, if Taiwan
businesspeople pay taxes on the mainland, they should not have to
do so again in Taiwan.
Normalizing bilateral trade relation would help to remove all
these barriers.
Second, they need to negotiate how to achieve mutual benefits.
Preferential treatment provided for by policies such as the CEPA
(Closer Economic Partnership Arrangement), which is given by the
mainland to Hong Kong and Macao, should also be given to
Taiwan.
Third, they should sign agreements on customs and excise, and
monetary union, and then form an integrated market that would be
the common market.
CBH: What do both sides need to do after these three
steps are completed?
Siew: Both sides would need coordinate their
legal, trade and accounting systems. The implementation of the 11th Five-Year Plan (2006-2010) indicates that
bilateral cooperation has entered a new phase.
CBH: Compared with the highly integrated industrial
sector, cooperation in the financial sector seems to be lagging
behind. What are your views on this?
Siew: The financial sector is a very important
part of investment, trade and economic cooperation. It is a pity
that there are neither exchange channels nor good platforms.
Moreover, supervision is very strict. I hope that financial
watchdogs across the Taiwan Straits could join hands to establish a
united platform and play a more active role in industrial
cooperation and common market supervision.
(China.org.cn by Tang Fuchun, July 11, 2006)