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Justin Yifu Lin: Mainland is still the Greatest Opportunity to Taiwan

SEP . 14 2017
Peking University, Sept. 12, 2017: The Xinhua News Agency reported on Sept. 8th (Reporter Zha Wenye, Liu Huan), Professor Justin Yifu Lin of Peking University said that as the domestic market of mainland China is vast and room for industries upgrading is huge, Mainland is still the greatest opportunity to Taiwan. He hopes for a closer economic relation of cross-straits and joint efforts in the great rejuvenation of Chinese nation. Justin Yifu Lin made the statement above on the 20th Beijing Taiwan Science and Technology Forum Summit when delivering keynote speech.

In his opinion, China’s mid-low-end industries are facing upgrading as a middle income country. For instance, last year China’s import volume of manufactured goods reached 1.1 trillion US dollars. If domestic industries move towards mid-high-end industries, it will stimulate domestic demand effectively. Besides, domestic infrastructure has large room to be improved. For example, the improvement of urban subway and pipe network is necessary, and rural urbanization just started. All these are great investment opportunities which can stimulate economy growth.

“These are directions in which the deficiencies of supply-side structural reform can be made up”, said Justin Yifu Lin. “As long as we take full advantage of good investment opportunities, the growth rate of investment in China can remain in a high level and the aim of remaining GDP growth rate at 6.5% is possible.”

Talking about economic cooperation of cross-straits, he said that since the late 1990s, Taiwan’s economy had grown to some extent, but the growth is slow compared with many other economies. The reason is that Lee Teng-hui, Chen Shui-bian and other leaders of Taiwan violated laws of economy. Justin Yifu Lin said that, from the perspective of economics theory, the development of a region’s economy needs to improve labor productivity by upgrading industries, take the advantage of cheap labor power in other regions, and seek markets where potential consumption is higher. Therefore, Taiwan’s economy should integrate with Mainland’s economy.

He also thought, eight years after 2008, the cross-straits reached economic cooperation framework agreement and thus gained mutual benefits with the 1992 consensus as political base. But this process is disturbed by the political change in Taiwan. Now Taiwan’s economic development is facing big challenges If Taiwan does not work hard, the situation will be worse.

“The Mainland is the greatest opportunity for Taiwan’s development,” said Justin Yifu Lin. "I hope both sides can work together and seize the opportunity to realize the great rejuvenation of Chinese nation”.

Written by: Wu Fangxu

Edited by: Xie Changli
Source: PKU News (Chinese)