'Tree direct links' provide more security guarantee for Taiwan people

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Last updated at: (Beijing Time) Saturday, December 27, 2003

'Tree direct links' provide more security guarantee for Taiwan people

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The so-called "security" issue has all along been used as a main pretext by Taiwan authorities to refuse and stall the "three direct links" across the Taiwan Straits. They not only take their rejection of the "three direct links" as a major screen for their political and military "security", but also claim that the "three direct links" would endanger the social and economic security related closely to the Taiwan people.

Will the "three direct links" really imperil Taiwan's so-called military "security"? The relations between compatriots on both sides of the Straits are as close as blood and water, with blood being thicker than water. Nobody in the world has a more fervent hope than we do to solve the Taiwan issue by peaceful means. The Chinese mainland shows the greatest sincerity and exerts the utmost efforts to win a prospect for peaceful reunification of China. We do not promise to renounce the use of force, our effort is directed against foreign forces' interference in China's reunification and the "Taiwan independence" attempt by Taiwan separatist forces. It is by no means aimed at the Taiwan public.

The State Council Taiwan Affairs Office, in its explanation of the "three direct links" policy, explicitly stated that the fundamental way to realize and maintain peace and stability in the Taiwan Strait area lies in the need for Taiwan authorities to completely abandon their "Taiwan independence" stand and stop all "Taiwan independence" separatist activities.

If Taiwan authorities accept the one-China principle, acknowledge the "1992 Consensus" and, on this basis, resume the cross-Strait dialogue and negotiation and further promote and develop cross-Strait relationship, then, realization of the "three direct links" will help enhance the exchange between the people on the two sides of the Straits, increase mainland-Taiwan common interests and push cross-Strait relations to develop in the direction of virtuous interaction, in this way, Taiwan's interests will naturally be secured.

Besides the so-called political and military "security", Taiwan authorities also exaggerated the social and economic security problems brought about by the "three direct links", asserting that the "three direct links" would marginalize Taiwan's economy, increase the risk of being hollowed out, and would entail such social problems as expanding the island's unemployment, worsening public security, and increasing social welfare burden, showing their strong tendency of making alarmist talks.

Will the cross-Strait "three direct links" marginalize the Taiwan economy? At present, the Chinese mainland has become the major destination of overseas investment by Taiwan business people. In 2003 Taiwan's export to the mainland soared to 24 percent of its total export volume. The division-of-labor relationship of cross-Strait industries is deepening. This situation is both the result of the full play given by the two sides to their respective comparative advantages and the product of the economic globalization and regional economic cooperation.

China has grown to be an important emerging market and production base in the Asia-Pacific region. In the future, China's economy will play an increasingly important role in the Asia-Pacific economy. The ever-closer cross-Strait trade and economic ties become increasingly important for enhancing Taiwan's position and role in the Asia-Pacific economy. In view of this, East Asian countries and regions have strengthened cooperation with China in recent years in order to reinforce their position and role in future East Asian economic cooperation.

Enterprises in Taiwan Island are accelerating their investment in the mainland and bring along the fast growth of the cross-Strait trade. Multinationals intend to avail themselves of Taiwan's geographic location and its advantageous condition of being the same race and having the same culture with the Chinese mainland, set up operational headquarters or R&D centers to take Taiwan as a springboard for their march to the Chinese mainland market.

"The Closer Economic Partnership Arrangement" has been signed in succession between the mainland and the HK SAR, and between the mainland and the Macao SAR this year. And China and ASEAN are speeding up their pace for establishing a free trade area. Under this situation. Taiwan authorities' continued delay of opening the cross-Strait "three direct links" not only makes it impossible for them to enjoy the enormous benefits brought by the cross-Strait economic cooperation, but also keep themselves outside the economic cooperation regions, one of which has been founded between the Chinese mainland and Hong Kong SAR and Macao SAR and another will be formed between China and ASEAN. This is where lies the risk leading to marginalizing of Taiwan's economy.

The assertion that the "three direct links" would lead to the "hollowing out of Taiwan's industries" is another so-called "economic security" issue played up by Taiwan authorities. Since the mid- and late 1980s, the Taiwan economy has entered the transition period from an industrialization society to a post-industrialization society, the proportion of industry to GDP has continued to drop, the percentage of service industry has kept rising, the new-emerging industry represented by the IT (information technology) sector has replaced the traditional industries to become the leading sector. This structural change is an important indication of economic development, rather than a sign of the hollowed-out industry. In fact, the smooth industrial upgrading of Taiwan's economy in the 1990s was benefited by the rapid development of cross-Strait economic and trade relationship.

At present, Taiwan's economy is in a new changing period. The IT industry engaging mainly in processing is weakening in the Island's comparative advantage, and is accelerating the shift of its production bases to the Chinese mainland. Taiwan's industry is in urgent need of ridding of its existing development mode and developing innovation, research and development, service as well as more sophisticated scientific and technological industries to a higher level.

At the same time, after Taiwan's entry into a post-industrialization society, a faster development of the tertiary industry also requires the Island to put an end to the situation in which domestic demand is taken as the guide and international competitiveness is weak, and to add fresh vigor through expanding overseas markets.

Under the present situation, the upgrading of Taiwan's industry and a stronger competitiveness of the service trade both need to rely on the heartland of the vast market of the Chinese mainland. Therefore, realization of the cross-Strait "three direct links" will not lead to the emptiness of Taiwan's industry, on the contrary, it will be an important driving force boosting Taiwan's economic restructuring.

Realizing the "three direct links" across the Taiwan Straits also will help solve the Island's unemployment problem. At present, Taiwan's unemployment rate remains high, on the one hand, this is caused by the Island's economic depression; on the other hand, it is a structural unemployment resulted from the falling of human resources structure behind the adjustment of industrial structure.

The "three direct links" across the Straits will help stimulate rejuvenation of the Island's tourism and real estate sector and will create many more new job opportunities within a short period of time. Meanwhile, after realization of cross-Strait "three direct links", quite a number of the Island's enterprises will, thanks to the unimpeded cross-Strait economic and trade exchange, expand the mainland markets in the form of commodities export rather than direct investment, thereby increasing investment in the Island and reducing the Island's employment pressure caused by the shift of production bases.

Furthermore, cross-Strait "three direct links" facilitate the establishment of a mechanism for normal, cross-Strait economic, trade and personnel exchanges, through cooperation between both sides, it is possible to more effectively curb the existing smuggle and stowaway and further protect the vital interests and personal safety of the people between the two sides.

Realizing the "three direct links" across the Taiwan Straits represents the popular aspirations and the only road leading to the development of cross-Strait relations. It is an undeniable fact that the "three direct links" will help guarantee Taiwan people's economic and social security. The practice of the authority of the Democratic Progress Party (DPP) which exaggerates the risk brought by the "three direct links" to the Islanders, continues to delay cross-Strait "three direct links" and creates a tense atmosphere between the two sides is the real factor of insecurity facing the Taiwan people.

The above article written by Zhang Guanhua is relayed from People's Daily (Overseas Edition)

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