Last updated at: (Beijing Time) Friday, March 12, 2004
Blocking 'three direct links' empties Taiwan's economy
The "three direct links" across the Taiwan Straits has become a pointer element concerning the prospect of Taiwan's economy. Lin Yifu, member of Chinese People's Consultative Conference (CPPCC) and professor with the Peking University made such remarks while giving an analysis on the cross-Straits economic and trade relations.
The "three direct links" across the Taiwan Straits has become a pointer element concerning the prospect of Taiwan's economy. Lin Yifu, member of Chinese People's Consultative Conference (CPPCC) and professor with the Peking University made such remarks while giving an analysis on the cross-Straits economic and trade relations: blocking "three direct links" will make Taiwan's economy empty.
As always, Taiwan authorities rejected and postponed the "three direct links" across the Straits, claiming that "three direct links" will incur Taiwan problems of economic "security", adding it will empty Taiwan's economy to aggravate its social problems such as increasing unemployment.
To this, Lin pointed out that the "direct three links" across the Straits will not lead to the so-called "emptiness" as viewed from the Taiwan's industrial structure and the whole active process. Only through industrial transition can Taiwan's traditional industries, whose profits will accordingly promote the economic development, maintain their competitiveness. This kind of external investment can turn "dead machines" to active capital. From Taiwan business' investment in the mainland, transferring the already outdated machines to the mainland as investment and upgrade Taiwan's industries with profits from the mainland finally to turn Taiwan's economy to good.
Lin held that over the recent years, Taiwan has been in another cycle of transformation in which its economy has been in difficulty, as a result of Taiwan authorities' policies like "be patient, no haste" and blocking "three direct links".
The delay of "three direct links" once and again prevents the integration of economies across the Straits and is harmful to the industrial development and upgrading of Taiwan.