China and Taiwan Group 5 Day 5 Chien-Hui Chan, Julian Yang, Yi-Hau Li, Luigi Gonzales

The Sunflower Student Movement

What is the Sunflower Student Movement? It was a protest movement driven by a coalition of students and civic groups between 18 th March and 10 th April Time The activists protested the passing of the Cross-Strait Service Trade Agreement (CSSTA) by the ruling party Kuomintang (KMT) at the legislature without clause-by-clause review. Origin During the 24 days, the activists occupied the Legislative Yuan for the whole period, stormed the Executive, called for strike, rallied in Ketagalan Boulevard and held grass-root citizens’ forums. Action ‘Sunflower’, a heliotrope, was used by the protestors as a symbol of hope. The name was also an allusion to the Wild Lily Movement of 1990, a milestone in the democratization of Taiwan. Name

Their Demands are…  Send the CSSTA back to the Executive Yuan!  Legislation of an oversight mechanism for all cross-strait agreements!  Review the CSSTA under the oversight act!  Call for Citizens’ Constitutional Assembly!

Economic Cooperation Framework Agreement (ECFA)  The Economic Cooperation Framework Agreement (ECFA) is a preferential trade agreement between the governments of the People's Republic of China (mainland China) and the Republic of China (Taiwan) that aims to reduce tariffs and commercial barriers between the two sides. SIGNED AT 29 Jun, 2010 EFFECTIVE AT 12 Sep., 2010

Economic Cooperation Framework Agreement (ECFA) ECFA EARLY HARVEST TRADE IN GOODS TRADE IN SERVICE INVESTMENT PROTECTION AND PROMOTION

Early Harvest Program To accelerate the realization of the objectives of this Agreement, the two Parties have agreed to implement the Early Harvest Program with respect to the goods and service. The Early Harvest Program shall start to be implemented within six months after the entry into force of ECFA. It is effective since 1 Jan, 2011.

INVESTMENT PROTECTION AND PROMOTION PERSONAL SAFETY: Both sides have agreed that whenever a restriction is placed on the personal freedom of a Taiwanese investor, Mainland China should notify his/her family members or enterprise within 24 hours, and also notify the Taiwanese authorities in a timely fashion. Settlement mechanisms: Five different settlement mechanisms: negotiation, coordination, conciliation, mediation, and administrative/judicial proceedings. It was signed at 9 Aug., 2012 and effective since 1 Feb, 2013 and below are its mainly scopes:

Cross-Strait Service Trade Agreement It was signed in June 2013 but currently un-ratified by the Taiwanese legislature, aimed at liberalizing trade in services between the two economies. Under the terms of the treaty service industries such as banking, healthcare, tourism, film, telecommunications, and publishing would be opened to investment and businessmen would be able to obtain indefinitely renewable visas for the other territory. It would become easier for businesses to set up offices and branches in the other territory and for large stakes in businesses to be sold to the other party’s investors.

Cross-Strait Service Trade Agreement The prospective of Mainland China to have the agreement with Taiwan is to prevent them to have similar trade agreement with other countries such as Free-Trade Agreement (FTA) based on complicated political issues. On the other hand, the motivation for Taiwan to sign the ECFA is partly hope not to be marginalized from other countries under the pressures by Mainland China. Also if Taiwan cannot success to have agreement with China, Taiwan might have big chance to lose out on economic in Asia because China has signed or will sign very soon on the FTA with other trade partners such as Korea and Japan.

Solving Taiwan’s Unbalanced Export Problem -Diversify The export Market(TPP/RECP)

RECP profile RCEP NEGOTIATING ISSUES Trade in Goods 、 Trade in Services 、 Investment 、 Economic and Technical Cooperation 、 Intellectual Property 、 Competition Policy 、 Dispute Settlement

Participation in regional economic integration will ensure Taiwan’s continued economic prosperity Joining TPP/RCEP is very important for Taiwan’s economic development It will strengthen Taiwan’s competitiveness in international markets It will spur domestic economic and trade reforms It will enhance Taiwan’s international visibility It will improve the investment environment and attract FDI It will invigorate domestic investment and create more jobs IMPORTANCE AND NECESSITY OF TAIWAN’S ACCESSION TO THE TPP/RCEP

Taiwan’s Policy for Joining TPP/RECP

Conclusion  There are many unique relationships between China and Taiwan. In addition to close economic relationship, both sides use the same language, and share a lot parts of culture and social activities.  China has become 2 nd large economic country, and is changing from world’s factory to world’s market. For Taiwan, we may keep economic cooperation with China, but it’s more important to diversify the export market.

Thanks for your attentions!