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Critics savage
proposal to let China into agriculture
SELLING THE FARM? A Cabinet commission met last
month to study the possibility of allowing China to invest in a logistics
center, which experts say would be disastrous
By Chung Li-hua and Jake Chung / Staff reporter, with staff
writer
Critics yesterday lambasted President Ma Ying-jeou’s (馬英九) administration as it
mulls allowing Chinese investors into the agricultural industry, saying that
Taiwanese agriculture has no future if it has to rely on China.
In an effort to stimulate the economy in accordance with its “Economic Power-up
Plan,” the Cabinet’s Public Construction Commission last month held a meeting to
review the possibility of allowing Chinese investors to invest in, but not be a
contractor in, the nation’s agricultural infrastructure.
The review studied possible Chinese investment in a large-scale, exports-only
logistics center for agricultural products in the proposed demonstration area
for free trade. The final decision will depend on Ministry of Economic Affairs
reviews at the end of the year.
If passed, the proposal would also open future Council of Agricultural logistics
centers to Chinese investors, granting them participation in the bidding process
and even allowing them to propose construction themselves, the commission said.
However, it added that though investment from China is possible pending the
ministry review, the investments must not include items in which Chinese
investors would be taking over the entire construction project.
Commenting on the proposal, National Chunghsing University professor of applied
economics Hwang Tsorng-chyi (黃琮琪) said China’s logistics system was “a mess” and
it was “a joke” for Taiwan to hope that China would be able to invest in a
Taiwanese logistics center.
No country’s agriculture has been strengthened through foreign investment and
“it’s like asking someone to hold your neck in a vice-grip,” Hwang said, adding
that the Ma government’s plans to open up the agricultural industry to Chinese
investment was undoubtedly the precursor to total abandonment of Taiwanese
agriculture.
“We might then just as well take Brazil’s cue and start planting biomass energy
crops only and import all our food,” he said.
“It is both ends of the supply chain that hold the most additional value,”
National Taiwan University agricultural economics professor Woo Rhung-jieh (吳榮杰)
said, adding that he did not know what the government was doing thinking of by
letting Chinese investors have free reign over distribution.
“Is the government trying to mess up our agricultural industry?” Woo asked.
Woo said that instead of approaching China, the council should be encouraging
farmers and agricultural organizations to handle the logistics part of the
supply chain.
South Korea’s agricultural groups established a trading company to help their
farmers export their produce and which uses the revenue to finance the farmers,
Woo said, adding that New Zealand’s kiwifruit was a successful export due not to
foreign investment, but local farmers’ efforts.
Woo said Taiwanese should be approached to invest in the logistics center, as
that would tie them emotionally to the land.
Chen Lee Agricultural Reform research team executive director Tu Yu (杜宇) also
said that Chinese agricultural products have been in competition against
Taiwanese produce for a long time, adding that should Chinese investors have a
hand in Taiwan’s international distribution, China would gain the upper hand in
the competition.
“Our agricultural produce would face worse sales on the international market and
it is very possible that through the supply chain relation, Chinese investors
would be able to take over the few agricultural techniques and seedlings that
Taiwan has managed to keep,” he said.
Tu’s comments referred to the increased flow of Taiwanese agricultural products
and seedlings being brought into China by Taiwanese businesspeople.
Meanwhile, Taiwan Solidarity Union Legislator Hsu Chung-hsin (許忠信) said the Ma
administration’s plans would affect national agriculture.
The Executive Yuan’s plans is essentially allowing Chinese investors to invest
in a free-trade area in which foreign agricultural products are imported,
processed and exported, Hsu said, adding that it would give the investors free
license to import any of the 830 products from China that are banned on
Taiwanese markets.
“The government is notorious for its customs control of agricultural products
making it very easy for Chinese agricultural products to enter Taiwanese
markets, and not only that, they could also enter Taiwan, earning them a
Taiwanese label, then be exported to Japan or other countries,” he said.
The council said in response that it was unable to divulge details about the
policy because it was still in planning, but it did not deny the plans for a
free-trade area.
Though the logistics center would be limited to exports, it would not be limited
to exporting to China, and would also include Japan and other countries, it
said.
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