Taiwan wants to pass oversight law before resuming China trade talks

TAIPEI — Taiwan’s new government has no schedule for re-starting trade talks with China, Economics Minister Lee Chih-kung said yesterday, adding that the pro-independence ruling party first wanted to pass a law governing oversight of all negotiations with Beijing.

“The cross-strait supervisory Bill is still in Parliament. Trade talks need the oversight, so to hold trade talks would be of no use,” said Mr Lee in his first news conference since Friday’s inauguration of President Tsai Ing-wen.

Beijing has already condemned the ruling Democratic Progressive Party’s (DPP’s) proposed “supervisory law”, and critics in Taiwan say it could paralyse relations with China.

The Bill requires government officials to get legislative consent before, during and after any talks with Beijing. They cannot sign any agreements with China before all three stages of legislative approval are completed.

Mr Lee also said yesterday Taiwan must seek more diverse trade partners apart from China, increase its presence in South-east Asia and India, and seek to join regional agreements such as the Trans-Pacific Partnership.

“With 15 months of shrinking exports, relying on strengthening China relations won’t solve the problem,” he said. “Even if we were on very good terms, domestic demand isn’t supporting growth enough.”

Taiwan’s economy contracted 0.84 per cent year-on-year in the first quarter, the only economy in Asia that started the year with negative growth. Exports, which account for about two-thirds of gross domestic product, have fallen since February 2015.

The DPP’s Dr Tsai pledged to boost the island’s prospects through trade deals, upgrading industry and fostering innovation.

She had said democratic principles will rule Taiwan’s ties with Beijing while reiterating her government will keep the peace and forge a consistent, predictable and sustainable relationship.

She urged China in her inaugural speech on Friday to “set aside the baggage of history and engage in positive dialogue”.

China has regarded Taiwan as a wayward province to be taken back by force if necessary ever since defeated Nationalists fled to Taiwan in 1949 after a civil war with China’s Communists.

The DPP, which distrusts Beijing and traditionally supports independence for Taiwan, took over the reins of government from the more China-friendly Nationalist Party, which had held power for eight years.

China yesterday reiterated its opposition to the DPP’s pro-independence stance, warning of negative consequences if the party fails to recognise Taiwan is a part of China, under a “One China” principle.

“If the ‘One China’ principle cannot be upheld, political mutual trust will no longer exist and is bound to have adverse effects,” said Mr Ma Xiaoguang, spokesman for China’s Taiwan Affairs Office, at a regular news conference.

“Everyone is very clear about the DPP’s history. This party adheres to the ‘Taiwan independence’ stance ... Obviously, it is precisely the DPP which needs to drop the baggage of history,” he said. AGENCIES