The original agreement enabled the Taiwanese companies to own a stake of up to 55% in China based companies. However, Taiwan’s rejection of the cross-strait trade pact, has already caused Taiwanese businesses to miss optimal benefits.
Taiwan has already been outperformed by Shanghais pilot free trade zone, which opened in September 2013, because the agreement has not been approved by the Legislative Yuan, the same source indicates.
Passage of the trade in services pact has been stopped by lawmakers from the opposing Democratic Progressive Party who realize the potential of economic agreements with China and who have requested the contents of the agreement be subject to the scrutiny of the legislative review clause by clause. Most of the public have been concerned by the secretive way in which the pacts negotiations were conducted.
After the ruling Kuomintang sought to force the bill through using an executive order to bypass the review process, student protesters have occupied the legislature in an unprecedented move that has made headlines around the world.
In addition to ecommerce, Taiwans securities industry is also outperformed by competitors from Hong Kong on account of the Closer Economic Partnership Arrangement (CEPA), Beijings free trade agreement with its special administrative region.
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