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Pact can create an
uneven playing field: sporting goods sector
By Yang Ya-ming and Stacy Hsu / Staff reporter, with staff writer
The sporting goods industry has joined other service sub-sectors in raising
concerns over the cross-strait service trade pact, saying that the agreement,
which its critics have labeled a back-room deal between China and the Chinese
Nationalist Party (KMT), could lead to unfair competition in the domestic
market.
“The market order can only be maintained if the agreement provides a level
playing field for both Chinese-invested sporting goods stores and local shops.
If the former are allowed to import sneakers from international sports brands
via their Chinese sales agents at lower prices, the latter could be forced out
of business,” the owner of a Greater Taichung-based sporting goods shop surnamed
Chen (陳) said.
Chen said the operating expenses for her shop, including rent, utilities and
personnel costs, had surged over the past few years, greatly squeezing profits.
“Because of increasing price transparency, customers now know where to go to
compare prices and how to use the information to ask for a discount, leaving
store owners with no choice but to surrender part of their profits,” Chen said.
She said most of the products sold at her store are international sports brands,
which operate through different sales agents in China and Taiwan.
Since Chinese sales agents are able to import products from the athletic gear
manufacturers at lower prices, the government must ensure fair competition in
the market by barring Chinese-invested shops from ordering goods through the
brands’ Chinese sales representatives, she said.
Echoing Chen’s views, the proprietor of a sporting goods store in New Taipei
City (新北市), surnamed Ma (馬), said local shops had already lost substantial
business over the past few years because of the exodus of Taiwanese
businesspeople to China.
“To make matters worse, the government has inked an agreement that allows
Chinese investors to open sporting goods shops in the country, which would not
only greatly reduce local stores’ market share, but could also drive us out of
business,” Ma said.
Under the agreement, China would open 80 service sub-sectors to Taiwan, while
Taiwan would open 64 sub-sectors to China. They include those related to
commerce, telecommunications, construction, health, transportation and finance.
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