Taipei, Oct. 3 (CNA) Overseas Chinese traders are over-dependent on the China market and are advised to seek business opportunities in other markets with a global strategy, a researcher said Tuesday.
"China should be a part of the global logistics management for your businesses instead of your only option, " said David Hong, director of the Taiwan Institute of Economics Research (TIER) in a speech at the World Chinese Traders Convention.
In 2005, Hong said, almost 38 percent of Taiwan's total exports and 71 percent of Taiwan's foreign investment went to China.
China's rapid economic growth and vast market "sucked in" a huge amount of investment from international and Chinese traders, said Hong, who also claimed there is a possibility of a hard landing for China's economy.
A more "reasonable" global strategy is one of segregation of risks, he said. In addition to China, he encouraged traders to consider investing in other developing economies, such as Brazil, Russia and India. He claimed that Taiwan is also a good option.
Taiwan is looking to establish itself as a global value-added service center and to develop human-intensive high technology products, he said.
Hong also gave his opinion on the economic outlooks of different regions such as the United States, Japan, Southeast Asia and the European Union.