President Ma Ying-jeou met on the morning of August 14 with a delegation from the US Center for Strategic and International Studies comprised of specialists in East Asian security. The president briefed them on concrete progress in recent years in relations between Taiwan and the United States and in cross-strait relations, as well as Taiwan's policy blueprint going forward.
As for US-Taiwan relations, President Ma stated, this year marks the 35th anniversary of the passage of the Taiwan Relations Act. Taiwan and the United States are enjoying the most stable and friendly relationship they have had in the past 30 years, and this goes not only for security cooperation, but also in terms of mutual visits by officials from both countries and tourism ties, the president said. He also pointed out that Taiwan and the United States resumed negotiations under the Trade and Investment Framework Agreement last year, and called for the signing of a bilateral investment agreement.
The president then discussed relations between Taiwan and mainland China. He said that in a bid to ensure long-term peace and prosperity in the Taiwan Strait, he has strived since taking office in 2008 to strengthen cross-strait relations, and that the two sides have signed 21 agreements and reached consensus on two issues. Meanwhile, Minister Wang Yu-chi (王郁琦) of Taiwan's Mainland Affairs Council and Minister Zhang Zhijun (張志軍) of mainland China's Taiwan Affairs Office of the State Council made reciprocal visits in February and June of this year, addressing each other by their formal titles, the president remarked. He added that this marked the first time in 65 years since the two sides came under separate rule that visits of this type were held, marking an important breakthrough in cross-strait relations.
The president stated that the improvement in cross-strait relations has also afforded Taiwan the opportunity to sign economic cooperation agreements with Japan, Singapore, and New Zealand. At the same time, the signing of these agreements is creating the preconditions for Taiwan to join the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership, he said. The president, however, acknowledged that the student movement that took place here in March has stalled progress toward ratification by the Legislative Yuan of the Cross-Strait Trade in Services Agreement, adding that this has also sparked heated debate regarding Taiwan's economic autonomy.
President Ma quoted from an editorial recently published by The Wall Street Journal and a research report by Dr. William T. Wilson, Senior Research Fellow in the Heritage Foundation's Asian Studies Center, entitled "Market Solutions Should be Central to U.S.'s Taiwan Policy," in further elaborating on the direction of cross-strait economic and trade policy. He said that the editorial in The Wall Street Journal stated that, "Since China is an integral part of global supply chains, Taiwan only hurts itself if it preserves barriers to cross-Strait trade." The editorial recommended that Taiwan's lawmakers quickly ratify the Cross-Strait Trade in Services Agreement and then the Cross-Strait Trade in Goods Agreement once it is signed, thereby liberalizing Taiwan's economy to avoid becoming isolated as its economic competitors undergo rapid liberalization. Meanwhile, the president stated, Dr. Wilson in his research expressed his belief if Taiwan becomes over-reliant on mainland China, this would be harmful to Taiwan's economy, and even to Taiwan's political autonomy. As a result, Dr. Wilson suggests that the United States help Taiwan join the TPP, President Ma said.
The president stated that the government cannot ask companies not to invest in mainland China, nor can it sever cross-strait trade. Even the Democratic Progressive Party was unable to do this during its eight years as the ruling party, he said. However, he noted, since taking office his administration has worked to expand Taiwan's trade dealings with other regions, which has helped to control the reliance of Taiwan on trade with mainland China. The president commented that this shows that the government has adopted a pragmatic policy that has been effective.
President Ma said that while mainland China is the world's factory, it is also the world's market. Mainland China is now the largest trading partner of 23 nations or areas throughout the world, he noted, pointing out that 19 of these are in Asia. Mainland China, the world's second largest economy, is right next door to Taiwan, so our close economic and trade ties are not unlike those between the United States, Canada, and Mexico, he said. Consequently, the president remarked, it is neither necessary nor possible for Taiwan to abandon or greatly reduce its trade with mainland China. The most important thing, he said, is for Taiwan to diversify its markets. As Taiwan's major trading competitors in the region continue to develop the mainland Chinese market, the president mentioned, if Taiwan does not sign trade agreements with mainland China, the market for its goods will shrink, which would not benefit Taiwan.
President Ma stated that it is not easy for the ROC to maintain space to survive and grow in the global community. However, efforts by the government in recent years have turned around contentious relations between the two sides of the Taiwan Strait, which had affected Taiwan's international relations. What was once a "vicious cycle" has now become a "virtuous cycle." Consequently, Taiwan's relations with the United States, Japan, and the European Union are now at their best state in several decades, he said. The president remarked that the government will continue to maintain this principle to create an environment that features "peace in the Taiwan Strait and friendship within the international community."
The delegation was led by former Governor of the State of Virginia George Allen.