Taipei, Oct. 26 (CNA) Taiwan should speed up normalizing economic relations with China to ensure its economic survival and future prosperity, the European Chamber of Commerce Taipei (ECCT) said Thursday in its annual Position Paper.
"With US$14.6 billion in investment, European business is the largest foreign investor in Taiwan and we have a keen interest in ensuring that Taiwan faces reality and secures its prosperity, " ECCT Chairman Ralf Scheller said in a press conference.
The position paper, titled "Facing Reality: Normalize Regional Economic Relations to Secure Taiwan's Prosperity, " claims that Taiwan's economy has not gained in competitiveness over the past year by making the necessary reforms that should have led to an economic transformation.
The ECCT, which represents over 600 members from 400 companies and organizations, is concerned that other economic areas in the region, including South Korea, Hong Kong, Singapore and China's Guangdong Province, have become more competitive through measures such as market liberalization and tax incentives.
Speeding up cross-strait business normalization is listed among the ECCT's 2006-2007 priority issues, which also include eliminating over-regulation, complying with World Trade Organization commitments, accelerating the development of the service industry and creating a favorable tax climate.
The paper expresses regret that recent domestic political turmoil and impasse has stifled economic reforms and cross-strait business normalization, while the most urgent and critical suggestions were side-stepped at the Conference for Sustainable Economic Development.
If Taiwan does not start normalizing its cross-strait economic relations soon, headquarters of European companies have indicated that they are not interested in further substantial investment in Taiwan, Scheller warned.