The conflict between China and Taiwan that has been going on for a long time began when the civil war between the communist parties and nationalist parties divided China’s territory and separated Taiwan from The Chinese mainland in 1945. Taiwan’s decision to establish its own government has complicated its relations with China, which still considers Taiwan as part of the territory that must be reunified. Even though Taiwan has been recognized as a sovereign nation by the United Nations and some countries in the world since 1971, China has expressed its desire for reunification with Taiwan to this day. (Qingli, 2022) Taiwan, which rejects China’s wishes, is trying to maintain its autonomy and independence by strengthening military cooperation with The United States. Taiwan’s close relationship with the United States has invited China’s anger and stated ready for war with Taiwan in any time. China is even increasing its military agenda in the Taiwan Strait and flying its warplanes over Taiwan territory. This has fueled the possibility of war between the two countries which until now have continued to increase their military budget and military training.
However, the threat of war between the two countries did not stop their trade activities between China and Taiwan. On the contrary, China is still the most important export partner which control 38.8% of Taiwan’s total exports in 2022, far above the United States which only reaches 15.7% of Taiwan’s total exports (Ma, 2023). Not only that, China and Taiwan depend on each other in semiconductor products where China depends on semiconductor products from Taiwan and Taiwan depends on the broad reach of China’s electronic market which uses semiconductors from Taiwan that has good quality and affordable prices. The trade relations between the two countries seem peaceful even though political and military tensions continue to escalate. This condition has been created since trade relations between Taiwan and China were regulated under the ECFA (Economic Cooperation Framework Agreement) which guarantees the security of trade relations between the two countries in all conditions.
What is an Economic Cooperation Framework Agreement?
ECFA or known as the Cross-Straits Economic Cooperation Framework Agreement is a form of China-Taiwan Free Trade Agreement, which was signed on June 29, 2010, in Chongqing. This agreement is the most important bilateral trade pact between China and Taiwan because it is the first agreement made after nearly two decades of sovereignty disputes between the two countries hindering their trade relations. In this agreement, the two countries agreed to create fair economic relations by gradually reducing and eliminating trade and investment barriers to each other. This agreement has agreed to reduce tariff barriers on 539 Taiwanese products to China and 267 Chinese products to Taiwan with total benefits that both countries promise.
During the signing process, a preliminary discussion on ECFA began in 2008 that continued with four rounds of preliminary talks in 2009. After both countries agreed to establish the ECFA, discussions on the substance and framework of the agreement were held for the first time on January 26, 2010, in Beijing between the Taiwanese government represented by Kao Koong-lian, general secretary and vice chairman of the Straits Exchange Foundation (SEF) and the Chinese government represented by Zheng Lizhong, Vice President of the Association for Relations Across the Taiwan Straits (ARATS). Discussions regarding the substance and framework of the ECFA agreement were carried out by SEF-ARATS representing Taiwan and China for 5 rounds of discussions. The final agreement of the 5 rounds was then approved on July 2, 2010, and came into effect on September 12, 2010. (Jianmin, 2011)
ECFA consists of 16 articles, 5 chapters, and 5 annexes. The first chapter is about general principles which consists of two articles, the first article is about objective and the second article is about cooperation measure which discusses the principles that must be obeyed by the two countries. The second chapter is about Trade and Investment which consists of 3 articles that discuss the rules of trade in goods, services, and investment. The third chapter is about economic cooperation which consists of 1 article that discusses the expansion of the area of economic cooperation that will expand the benefits of this agreement. The fourth chapter is about Early Harvest which consists of 2 articles that discuss the early harvest program of trade in goods and trade in services as a form of implementation of this agreement. The fifth chapter concerns other provisions consisting of eight articles concerning exceptions, dispute settlement, Institutional arrangements, documentation formats, annexes and subsequent agreements, entry into force, and termination. (Elleman, 2022)
How ECFA Guarantees China and Taiwan Mutual Benefit on Trade?
ECFA as an agreement amidst the sovereignty dispute between China and Taiwan is included in hard legislation. This can be seen from the substance and framework of the ECFA that meets the three dimensions of hard legislation.(Abbott et al., 2000) The first dimension is an obligation, the clarity of the provisions regarding the types of goods, services, and investments that receive reduced tariff barriers has been attached in Annex 1. Not only that, the provisions regarding the principles that must be obeyed by the two countries are also clearly stated in Article 2 and the exceptions are in Article 9.
The second dimension is Precision, a clear diction regarding the agreement between the two countries in the ECFA as seen from the use of the words “have agreed (article 2-8), shall engage (article 10), shall establish (article 11), shall cease to apply (article 7)) and others. The use of the sentence shall in law implies an obligation for an action without permissiveness so as to minimize the possibility of violation (Legal Information Institute, 2021).
The third dimension is delegation, China and Taiwan establish the Cross-Straits Economic Cooperation Committee which is a representation of the two countries to resolve disputes that may occur regarding trade and investment relations under the ECFA. Of the 22 agreements formed by China and Taiwan from 1990-2010, ECFA was the initial agreement that placed their economic relations under a legal framework (Hsieh, 2011). The clarity of provisions, diction, and dispute settlement that apply in the ECFA has reduced the possibility of violations or deviations from the agreement that has been formed. So that economic cooperation carried out under ECFA does not experience obstacles or disturbances due to the heating up of China-Taiwan political relations.
Not only that, establishing cooperation under ECFA has become a consideration that provides cost reduction in economic and political terms for the two countries if it is compared to the choice not to cooperate. By cooperating under ECFA, Taiwan and China come through economic growth from the export-import of goods, services, and technology investments made by the two countries. Through the Early Harvest Program (EHP) in ECFA, Taiwan experienced a surplus from sales of its machine tools that reached 61.9%, while China benefited from better and cheaper technology transfer from Taiwan (Heo & Cho, 2012). In addition, increased trade and investment activities between the two countries have created interdependence which also has an impact on increasing stability and peace between the two countries where Taiwan can reduce tensions that can trigger Chinese military attacks and China itself gains space for controlling Taiwan without having to incur military costs and bear the consequences of conflict due to the lack of communication space that must build mutual trust.
These two things then underlie economic cooperation between China and Taiwan under the ECFA agreement which can guarantee the creation of fair trade even though there has been a prolonged conflict of sovereignty since 1945 to this day.
Assad’s visit to China: Breaking diplomatic isolation and rebuilding Syria
The visit of Syrian President Bashar Al-Assad to China to participate in the opening of the Asian Games came as a serious step to try to break the diplomatic isolation from Syria. Syrian President “Bashar Al-Assad” was keen to meet his counterpart Xi Jinping in the city of Hangzhou in eastern China, where the Asian Games are being held, as this was the Syrian president’s first visit to China since 2004. According to the Syrian regime’s Al-Watan newspaper, Al-Assad will attend the launch ceremony of the (nineteenth edition) of the Asian Games, which will open on September 23, in the Chinese city of Hangzhou. This visit to Bashar al-Assad reflects the great coordination between Moscow and Beijing, as it is likely that the Russians pushed for this visit at this precise time. Perhaps, through his visit to China, Bashar al-Assad is trying to deliver a specific message about the start of “international legitimization” of his regime. Syria’s accession to the Belt and Road Initiative in January 2022 is an indication of the possibility of implementing vital Chinese projects, especially since it is located between Iraq and Turkey, making it a vital corridor for land routes towards Europe.
Bashar Al-Assad’s visit to China also comes in an attempt to attract it to reconstruction projects in the affected areas in Syria, as China has the ability to complete reconstruction infrastructure in residential and civilian areas with exceptional speed. This is the same as what the Chinese ambassador to Syria “Shi Hongwei” announced in August 2023, that “Chinese companies are actively involved in reconstruction projects in Syria”. The war in Syria led to massive destruction of infrastructure and the destruction of many vital sectors of the Syrian economy, including oil, while the Syrian government is subject to harsh international sanctions. We find that the Chinese side has shown great interest in the reconstruction projects in Surba, such as the presence of more than a thousand Chinese companies to participate in (the first trade exhibition on Syrian reconstruction projects in Beijing), while they pledged investments estimated at two billion dollars.
China played an active role through diplomatic movements in Syria, as it participated in the “Astana” process, and obstructed Security Council resolutions related to Syria, to confirm its position in support of Damascus, using its veto power more than once in the Security Council, against resolutions considered to be a blow to Assad’s “legitimacy”. In September 2017, the Syrian regime classified China, along with Russia and Iran, as “friendly governments” that would give priority to reconstruction projects. Therefore, Al-Assad affirmed during his meeting with Chinese President “Xi Jinping” that: “this visit is important in terms of its timing and circumstances, as a multipolar world is being formed today that will restore balance and stability to the world, and it is the duty of all of us to seize this moment for the sake of a bright and promising future”.
According to my analysis, China follows the policy of “breaking diplomatic isolation on presidents and countries against which America is angry”, so the visit of “Bashar al-Assad” comes within a series of visits that China witnessed during the current year in 2023, to presidents who are isolated internationally by the United States of America, such as: Venezuelan President “Nicolas Maduro”, the Iranian President ”Ibrahim Raisi”, and the Belarusian “Alexander Lukashenko”.
China is also keen to conduct interviews in its newspapers and official websites affiliated with the ruling Communist Party with many presidents and officials of countries isolated internationally and diplomatically by the United States of America and the West, such as the Chinese keenness to conduct and publish an interview with Syrian Foreign Minister “Faisal Mekdad” on September 21, 2023, and the Chinese reviewed his statements, saying that “the United States of America has plundered oil, natural gas, and other resources from Syria, causing losses worth $115 billion”. The Chinese newspaper “Global Times”, which is close to the ruling Communist Party, also focused on the United States’ greater role in the deterioration of “Syria from stability to chaos” . The Chinese newspaper compared this to China’s policy, which constantly calls for peaceful dialogue and opposes “foreign interference” .
Through his visit to China, Syrian President “Bashar Al-Assad” is trying to lay the foundations for joint cooperation between China and Syria within the framework of the Belt and Road Initiative, with full Chinese support for Syria’s accession to the Shanghai Cooperation Organization as a dialogue partner. China has always affirmed its firm support for Syria’s efforts against foreign interference, with the Chinese rejection of the stationing of illegal forces on Syrian territory. China is also making great efforts with many countries to lift sanctions and the illegal economic blockade on the Syrian people, in addition to Chinese support for building Syrian capabilities in the field of combating terrorism. Knowing that despite its alliance with President “Bashar Al-Assad”, China did not participate in supporting him militarily, but it used the right of criticism to obstruct the passage of resolutions against him in the Security Council.
We can reach an important conclusion that Bashar Al-Assad’s visit to China has a greater political track, and that Beijing is trying to play a greater role in the issue of resolving conflicts or to have a greater actual role in negotiations related to sensitive issues in the region. The implications of Assad’s visit to China are also politically significant, as China is trying to play a greater political role in the region, as China has been trying since the start of the Russian-Ukrainian war and the emergence of a vacuum in the Middle East as a result of the decline of Russian influence due to its preoccupation with the war, so Beijing is trying to expand in the Middle East and Africa.
China’s Inclusive Diplomacy for Global Cooperation
President Xi Jinping’s address at the recently held 2023 CIFTIS resonates as a powerful call for inclusive development and cooperation in the services trade sector. China’s commitment to expanding market access, increasing connectivity, and aligning policies with global standards demonstrates its commitment to ensuring a level playing field for all nations.
This commitment extends across different sectors, including telecommunications, tourism, law, vocational examinations, and the larger services sector. President Xi’s address emphasized China’s intention to expand broader, broaden market access, and support inclusive development in the services trade sector. His sentiments resonate with the global world as China seeks to create new prospects for openness, cooperation, and economic equality.
Over the last few decades, the services trade landscape has changed drastically, becoming an essential component of international business. However, this expansion has not been uniform, with developing countries frequently encountering difficulties such as limited market access, complex rules, and capacity limits that prevent them from fully participating in international services trade.
Notably, China is committed to promoting inclusive growth in the services trade sector. It assured of taking continuing steps to accelerate Chinese modernization through high-quality development, to open up new avenues for openness and collaboration for all countries.
Through openness, cooperation, innovation, and shared services, China emphasized the need for inclusive growth and connectivity. Recognizing that a rising tide in services trade should raise all boats, particularly those from nations with limited resources, China has launched a series of ground-breaking initiatives. Additionally, China is actively expanding its network of high-standard free trade areas, participating in negotiations on the negative list for trade in services and investment.
China is setting an example by aligning its policies with international standards. President Xi highlighted in his speech that national integrated demonstration zones for increased openness in the services sector, suitable pilot free trade zones, and free trade ports will be at the forefront of aligning policies with high-standard international economic and trade regulations. These zones demonstrate China’s commitment to fostering an atmosphere conducive to international cooperation and growth.
Real-world examples vividly demonstrate the practical impact of China’s assistance to developing countries in the services trade. China’s investments in transport infrastructure, such as the Standard Gauge Railway, have considerably facilitated the flow of goods and people in Kenya, boosting the services sector indirectly.
Pakistan’s experience with the China-Pakistan Economic Corridor (CPEC) is similar, with improved physical connectivity catalyzing the expansion of digital services and e-commerce. Various infrastructure developments in Indonesia have resulted in spectacular advances, opening up new potential for services trade.
Ethiopia, too, has reaped the benefits of China’s commitment, with active participation in industrial parks reviving the services sector, which includes logistics, banking, and education. These real-life success stories highlight China’s critical role in facilitating the expansion and development of services trade in developing countries.
China’s commitment to capacity building and technical aid is critical in its support for developing countries in the services trade. China provides these countries with the knowledge and skills they need to participate effectively in the services trade by offering specialized programs. Furthermore, China’s significant investments in infrastructure projects such as ports, logistical hubs, and telecommunications networks play an important role in facilitating the smooth flow of services.
Furthermore, China’s commitment to reducing entry barriers and optimizing regulations indicates the country’s persistent commitment to creating an equitable environment. This approach not only promotes equitable possibilities but also simplifies market access, making it easier for developing countries to export their services to China’s enormous and dynamic market.
Furthermore, China gives significant financial support in the form of loans and grants for service trade-related initiatives, recognizing the financial problems that many developing countries confront. This financial assistance enables nations to overcome economic challenges and invest in the expansion and improvement of their service sectors, thereby encouraging economic equality and cooperation.
As the world continues to evolve, services trade will play an increasingly important role in global economic growth, and China’s leadership in this realm is helping to shape a future where opportunities are shared, disparities are reduced, and cooperation knows no bounds. It is a vision worthy of appreciation and support since it is consistent with the ideals of justice and equality, moving the globe closer to a more linked and wealthy global community.
China’s Multilateral Engagement and Constructive Role in the G20
The recent G20 Summit in India has once again taken center stage, attracting global attention as it gathered together leaders and delegates from the world’s 20 most powerful economies. This high-profile event was significant in shaping international relations and addressing serious global concerns due to its broad presence and crucial talks. This high-stakes gathering occurs at a pivotal juncture, marked by escalating divisions among major powers on a multitude of pressing global issues, including the Russia-Ukraine conflict, global economic recovery, food security, and climate change.
The recent inclusion of the African Union (AU) as a permanent member within the G20 serves as a positive signal, signifying consensus among major economies. However, lurking concerns persist about the formidable challenges involved in achieving unity and issuing a joint declaration in the midst of these complex global dynamics.
Chinese Premier Li Qiang’s opening remarks at the 18th G20 Summit in New Delhi resonate as he underscores the paramount importance of unity and collaboration among G20 member nations. He emphasizes the critical need for effective coordination of macroeconomic policies to restore hope and generate momentum for long-term economic growth.
Premier Li eloquently highlights the interconnectedness of humanity’s destiny and calls upon nations to demonstrate mutual respect, seek common ground while momentarily setting aside differences, and work tirelessly towards peaceful coexistence. In a world characterized by profound crises and shared hardships, he aptly observes that no nation can thrive in isolation. Therefore, the only plausible pathways for guiding humanity forward are those rooted in cooperation and harmony.
The G20, originally established to navigate global financial crises and forge collective strategies for addressing economic challenges while fostering global economic development, has, regrettably, experienced a decline in consensus and a rise in differences among major powers. This shift has been particularly evident since the onset of the Ukraine crisis and the United States’ strategy of containment against China. Consequently, the G20 is increasingly devolving into a forum marked by discord, rather than the once-productive and constructive multilateral mechanism it was intended to be.
Nevertheless, the G20 retains its significance as a pivotal forum for international collaboration in confronting global challenges. With the increasing contributions of developing nations like China, India, and African countries, the voices within the G20 have diversified, no longer solely dominated by Western perspectives. As a response, the United States seeks to regain control of the multilateral process to further its agenda of great power competition. However, this approach is unlikely to be warmly received by the broader international community.
China remains steadfast in its commitment to deepen reforms and open up further to foster high-quality development and its unique brand of modernization. China views itself as a catalyst for additional momentum in global economic recovery and sustainable development. China stands ready to collaborate with all stakeholders to contribute to the well-being of our shared Earth, our common home, and the future of humanity. Despite Western media’s attempts to sensationalize China’s stance and magnify perceived differences, China continues to play a constructive role within the G20, dedicated to its multilateral mission.
To ensure that the G20 remains a platform focused on global governance rather than being overshadowed by geopolitical conflicts, China remains determined to fulfill its constructive role within the group, regardless of attempts by Western powers to politicize the mechanism. China’s efforts have expanded the G20 to include the African Union, effectively transforming it into the “G21.” China was the first nation to endorse African Union membership in the G20 and advocates for the African Union to assume an even more significant role in international governance.
The growing divisions and disputes within the G20 have eroded its effectiveness as a platform for addressing global challenges. These divisions, primarily driven by American actions and policies, have spawned tensions with far-reaching global implications, from the Ukraine crisis to escalating tensions in the Asia-Pacific region, particularly in the Taiwan Straits and the South China Sea. These developments underscore the critical role the G20 plays in promoting cooperation and unity.
Amid the current geopolitical landscape characterized by major powers’ divisions, tensions have surged, resonating globally and causing ripple effects. From the Ukraine crisis to tensions in the Asia-Pacific region, particularly in the Taiwan Straits and the South China Sea, the significance of the G20’s role in fostering cooperation and unity cannot be overstated.
All G20 member nations must recognize the urgent imperative of cooperation in building a world that is safer, more prosperous, and increasingly peaceful. Given the global challenges that transcend narrow national interests, effective responses can only be crafted through international cooperation. The G20 stands as a pivotal arena for this cooperation, with China’s positive contribution being indispensable in promoting cohesion.
Despite Western media’s efforts to sensationalize China’s position and magnify perceived gaps, China remains a committed multilateral partner within the G20, dedicated to constructive engagement. The G20 continues to serve as a critical platform for addressing global concerns, fostering unity, and promoting international collaboration. As the world grapples with intricate issues, it remains imperative that nations adhere to the principles of multilateralism and collaborate relentlessly to secure a more prosperous, peaceful, and sustainable future for all.
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