Mr. Chairman, Distinguished Guests, Ladies and Gentlemen:
I am extremely pleased to join you today at the opening session of the Twenty-fourth Joint Conference of the ROC-USA and US-ROC Business Councils. On behalf of the government and people of the Republic of China, I extend our most sincere welcome to all of you.
Extensive US-ROC Trade Relations
Over the past two decades, the US-ROC and ROC-USA Business Councils have enjoyed a complementary relationship, contributing significantly to enhanced relations between the United States and the Republic of China. The trade between the US and ROC has thrived, increasing from less than US$4 billion in the mid-1970s to US$50.6 billion in 1999.
The United States is our largest export market and the second largest import source. Taiwan is the seventh largest trading partner of the United States and America's fifth largest export market for agricultural products. Taiwan's per capita import of US products exceeded US$900 in 1999, highlighting the importance of American products on the Taiwan market.
US investment in Taiwan has grown rapidly, exceeding US$1.1 billion by the end of 1999. As a result of accelerated globalization, Taiwan enterprises posted a total investment in the United States of US$450 million in both 1998 and 1999. In the first four months of this year, our US investment totaled US$220 million, a 35 percent increase over the same period last year.
The Extensive Influence of America's "New Economy"
In the 1990s, the US made impressive progress in the "new economy." Through science, technology, innovations, and investments, the US accelerated progress in the information industry. Labor productivity grew by more than 2 percent annually in the 1992-97 period, sustaining stable economic growth and maintaining eight years of economic prosperity.
Since 1997, the US has averaged a growth rate of 3.9 percent a year, a record since 1985. This excellent performance can be credited to the leading entrepreneurs present here. Close economic cooperation with the US has enabled the ROC to benefit from rapid economic growth and modernization. The ROC has become the world's third largest manufacturer of information products, surpassed only by the US and Japan. Taking this opportunity I wish to express my deepest gratitude for your contributions and friendly cooperation.
With innovative information technologies the United States has pioneered a new economic development pattern of "high growth, low prices, and minimal unemployment." This is a vital lesson for the ROC. In a knowledge-based economy confronted by increasing environmental awareness, industrial development in the new century must meet green production requirements, consider the capacity of the environment, and ensure sustainable use of resources.
In the future, every country must foster a high-quality environment in order to attract more high-tech talent, develop knowledge-based industries, and sustain economic development. The devastating September 21 earthquake underscored the power of Nature's backlash to ill-advised development, and reminded us of the close interdependence of development, the environment, and conservation.
In my inaugural speech, I proposed a vision of national growth centered upon the development of Taiwan as a "green silicon island." Based upon these three major ideals: "green production," "quality life," and "sustainable environment," we will create a fair market with a sound legal system, promote innovative and environmentally-friendly technological development, strengthen the formation of human capital resources, and provide an environment conducive to industrial growth.
We will also maintain a balanced ecology, implement nature conservation policies, and integrate plans for infrastructure and services closely related to the work, daily lives, recreation, education, and medical care of the people.
We will gradually introduce the ideal environmental approach of the science-based industrial park to every corner of Taiwan, so we can develop Taiwan into a green silicon island with a knowledge-based economy, a safe and harmonious society, and a pleasant and comfortable environment.
A New Century of Innumerable Opportunities for Trade and Business in Taiwan
I believe that the next four years are critical for Taiwan to thoroughly transform itself and emerge with a new look. We will initiate a series of plans for infrastructural modernization. Meanwhile, improved conditions for industrial development, better government efficiency, privatization, and incentives for private participation in public construction projects will lead to increased private investment and foster Taiwan's capacity for long-term economic growth.
These factors provide innumerable trade and business opportunities for the United States, the world's hi-tech leader. I hope that investment by US enterprises in Taiwan will continue to grow, thus enhancing opportunities for hi-tech industrial interchange for the mutual benefit of both the ROC and the USA.
Improving cross-strait relations remains the most important factor. Taiwan's successful experience in economic development has facilitated economic reforms, openness, and development on the Chinese mainland. Taiwan now has much to share with the Chinese mainland in terms of its current experience in democratization and economic upgrading. I hope the Beijing authorities will clearly understand our goodwill and sincerity and respond accordingly to strengthen interaction and exchange between the two sides of the Taiwan Strait and promote peace, stability, and prosperity in the Asia-Pacific region.
Conclusion
On the threshold of a new century, Taiwan is facing the challenge of upgrading and transforming itself again. It is of great significance that this year's conference is being held in Taipei with the theme "Taiwan's New Landscape: Business Opportunities in the 21st Century." I believe that the exchange of experiences and ideas among the conference delegates will further promote bilateral trade and cooperation between the United States and the Republic of China for our mutual benefit and advancement.
In closing, I would like to offer my best wishes for the utmost success of this conference and good health and happiness to each of you. Thank you.