August 7, 2011 by USA Post
Scissors, a researcher at the Centre of Asian Studies at the Washington-based Foundation Heritage, says U.S. and Taiwan have a business relationship extraordinarily intense.
With a population of 23 million, Taiwan is the ninth largest in the U.S. “Trading partner. However, excluding microstates, is actually the third largest in the U.S.” nation trading on a “per person” basis.
Speaking at a roundtable at the Center for National Policy, scissors, said the use of “person” formula, the only countries ahead of Taiwan in the U.S. trade were Canada and Mexico and the U.S. has free trade agreements (FTAs) with the two of them.
The business relationship between the U.S. and Taiwan, he said, was “absolutely classic”, “mutual benefit” and “very positive and healthy.”
However, Scissors said the stalled agreement on Trade and Investment Framework (TIFA) was a “waste of time” and unnecessary.
He supported an FTA with Taiwan, but said the real obstacles to a U.S. agreement were lack of interest of Taiwanese and protectionism. Scissors, said a major problem is that while Taiwan held on U.S. and 250 million dollars in U.S. securities, Taiwan has only U.S. and 4.5 billion U.S. in direct investments, and this at a time when the bond yield is very low.
“You might as well stick your money under the mattress,” said Shears.
“Taiwan is much smaller than an investment partner than it is as a trading partner,” he said. “This is a real failure in the economic relationship. If NAFTA is not realistic at this point, we think of a bilateral investment treaty. Direct Taiwanese investments in the U.S. are very, very, very low. Greater investment in the U.S. would bring the two economies closer political relations improve and diversify Taiwan off the coast. Do you want a diversified portfolio? This has nothing to do with politics. ”
Taiwan could be making a big mistake by putting most of their capital investment in the China basket, because China’s economy could stall.
Scissors, said the surplus labor in China that could end up depends on the environmental devastation of the earth could affect performance could reduce capital and China would continue suppressing innovation.
“Connecting from Taiwan to China is going to seem like a very bad thing for 2020,” he said.
Besides, scissors, she said, all ingredients are at stake for “America and China a great economic boom.”
U.S. Government President Barack Obama, he said, was committed to free trade and markets; the Republican presidential candidates next year try to make names for themselves what they can of China’s political transition is coming soon and the economy U.S. has stalled.
Taiwan needs to plan for contingencies, said
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