Taiwan textile industry is famous for its functional textile products
The signature of ECFA between Taiwan and Mainland will definitely influence textile industry along the coast. What exact influences will be?
Taiwan textile enterprises: they are for ECFA because advantages overweigh disadvantages.
It is known that textile industry in Taiwan has been looking forward to ECFA for a long time. Before its signature, president of Taiwan Textile Federation, Mr Wang Wenyuan called on the quick signature of ECFA. He still said that the key for Taiwan textile industry development is mainland.
General Secretary of Taiwan Textile Federation, Mr Huang Weiji claimed that 21 trade unions of textile industry support the signature of ECFA because it was advantageous to Taiwan textile industry. He pointed out that Taiwan textile products will enjoy free tariff gradually from 1st, January, 2011. Suppose all 23 million Taiwanese buy textile products from mainland, the export value of mainland textile products is only 1.5 billion to 1.6 billion US dollars. However, since the advantage of zero tariff, textile export of Taiwan textile enterprises will increase many times than before. This advantage will help Taiwan textile enterprises beat their Korean competitors.
For the concern that mainland textile products may intensify competition, famous Taiwan fashion designer Gioa Pan said that Taiwan textile industry didn't fear any competition. She emphasized that opening of market was a progress.
Mainland textile enterprises: Influence is limited
The implementation of zero tariff policy will lead to the decline of price of imported textile products, which will definitely influence the mainland textile market. However, mainland textile enterprises react rationally.
According to assistant president of Tianjin Tianfang Investment Holding Co., Ltd, Mr Chen Baojian, the present situation of Taiwan textile industry is not optimistic. What's more, influenced by rising labor cost, Taiwan textile enterprises face many challenges. As a result, even the implementation of zero tariff will not bring great influence on mainland market.
Mr Chen is not alone. Many mainland textile enterprises hold the same idea. They think the effects of ECFA on mainland textile market are limited.
