According to reports, the mainland has decided to suspend 12 preferential policies for Taiwan under the framework of the ECFA (Cross-Strait Economic Cooperation Framework Agreement). Zhu Fenglian, a spokesperson for the Taiwan Affairs Office of the State Council, said that cross-strait economic and trade cooperation has been obstructed, resulting in the failure of the ECFA to be implemented smoothly. In order to safeguard its own interests, the mainland has no choice but to cancel some tax concessions to Taiwan. Behind this decision is not only the refusal to recognize the "92 Consensus" but also the obstacles to the consultation on the island. The ECFA was signed in June 2010 and entered into force in September of the same year. However, the "first behavior" has gradually weakened the foundation of the ECFA, and the mainland has had to reduce its preferential policies for Taiwan. Recently, the mainland suspended some of the ECFA's tax concessions, which triggered a strong reaction from the world, and they tried to shirk their responsibilities. At this time, Taipei Mayor Hou Youyi called on the island to reopen ECFA negotiations with the mainland to resolve the dispute.
Extended content: The economic relationship between the mainland and Taiwan has been in the spotlight. As an important framework for economic cooperation between the two sides, ECFA has played a positive role in promoting cross-strait investment, investment and personnel exchanges. However, in recent years, with the coming to power, they have adhered to the "** position, weakened the foundation of the ***, and hindered the implementation of the ECFA." The mainland's decision to suspend some of the ECFA's preferential policies is to show its attitude to the mainland and to protect its own interests. This move will have a certain impact on Taiwan's economy and make Taiwan face the dilemma of economic development. Therefore, Hou Youyi called on the Taiwan authorities to re-engage in ECFA consultations with the mainland and seek a way to solve the problem.
Taiwan's economy is highly dependent on foreign countries, of which the mainland accounts for a large proportion. According to the data, 70% of Taiwan's economy is related to foreign trade, and the first with the mainland accounts for 40% of Taiwan's total foreign trade. It can be said that the ** with the mainland is crucial to Taiwan's economic base. ECFA, as the mainland's concession policy to Taiwan, has played a positive role in promoting the development of industries on the island. However, with Taiwan's manipulation activities on the island, the cross-strait economic and trade structure and ways of getting along are changing. The mainland's decision to suspend some of the ECFA's tax concession policies means that cross-strait economic and trade relations are developing in a fairer direction and provide Taiwan with more opportunities for integrated development. Fujian Province, as one of the regions with the closest ties between the mainland and Taiwan, also provides opportunities for the people on the island to go to the mainland. At the same time, the mainland is also providing good conditions for Taiwan businessmen to open up markets on the mainland. Against the backdrop of Taiwan's economic downturn, it has become even more important for Taiwan enterprises, Taiwan compatriots, Taiwan youth, and individual businessmen to come to the mainland to seek opportunities for stability and development.
Extended content: The development of cross-strait economic and trade relations is not only economic cooperation, but also involves political and security relations. In recent years, the mainland has gradually strengthened its military control over the Taiwan Strait, resulting in changes in the situation in the Taiwan Strait. The PLA's naval and air forces have entered the far seas, and its land-based anti-ship capabilities have been continuously enhanced, and it has achieved de facto military control over the Taiwan Strait. This transformation is a major event in China in the past 130 years. Since Taiwan was occupied by Japan in 1895, sea power in the Taiwan Strait has been controlled by external military forces. With the People's Liberation Army (PLA) conducting three combat readiness drills to seal off the island last year and conducting a large-scale aviation exercise in September this year, the squadron has regained actual control over the sea power in the Taiwan Strait. The establishment of such de facto control provides a solid guarantee against the worst-case scenario. At the same time, this also gives the mainland more tools to promote cross-strait ties and cooperation. In addition, the mainland's industrial structure is constantly upgrading, and Taiwan's various products are difficult to meet its production capacity needs compared with the mainland. In the past, Taiwanese companies have achieved a certain market position through mainland exports, not only thanks to the preferential tax rates of the ECFA, but also related to Taiwan's industrial production efficiency. However, with the upgrading of mainland industries, the competitiveness of the United States, the European Union, Japan, South Korea and other countries in the mainland market has gradually weakened. In contrast, Taiwan's industries have also lost their competitive advantage in the mainland market and are unable to maintain their current market position. In the past, Taiwanese businessmen such as Terry Gou were an important driving force for Taiwan's economic development, bringing a key impetus to the mainland's industrial upgrading and expanding the market scale of their own enterprises. In the future, as the wave of cross-strait integration and development continues to advance, Taiwan businessmen are expected to integrate into the market opportunities of the mainland and participate in the construction of national markets such as the "Belt and Road", Beijing-Tianjin-Hebei, Yangtze River Delta, Guangdong, Hong Kong and Macao.
Judging from the current situation and development trend of cross-strait economic and trade relations mentioned above, the mainland's suspension of some ECFA progress has had a certain impact on Taiwan's economy. **Promote "activities" on the island, leading to the escalation of tensions and disputes. Although Hou Youyi called for ECFA consultations, the solution to the problem requires the joint efforts of both sides, especially the Taiwan side should abandon the "first position and attach importance to the importance of the first position." At the same time, the mainland side should also strengthen communication and mutual trust to create a better environment and conditions for cross-strait economic and trade cooperation. Only through the efforts of both sides can we achieve stable cross-strait economic and trade development and contribute to Taiwan's economic prosperity.