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Machinery Makers in Taiwan Eager to Sign ECFA with China

2010/01/21 | By Ben Shen

Taipei, Jan. 21, 2010 (CENS)--Faced with strong competition from neighboring Japan and South Korea, Taiwan's machinery manufacturers are eager to see Taiwan sign the proposed ECFA (economic cooperation framework agreement) with China, paving the way for industrial cooperation and interchange.

Fair Friend Group chairman Jimmy Chu noted the robust development in the machinery industry in Taiwan and China, so urges mutual cooperation to achieve win-win result.

Chu said Taiwan would be an early beneficiary of the ECFA as domestically made machinery will be exempt from the 10% import tariff when shipped to China, hence boosting the competitive edge of Taiwan-made machinery.

With China mainly concentrating on the production of conventional low-priced machinery, Chu suggested China's machinery manufacturers to partner with Taiwan counterparts to move upmarket, as well as replace Japan and South Korea to sell high-tier products in China.

China National Machinery Industry Corp. has pledged to set up factories in Taiwan once the Taiwan government allows Chinese firms to invest in Taiwan.

At the end of 2009, Fair Friend signed strategic alliances with China's Beijing No. 1 Machine Tools Works Co. and Kaijieli Group, the first step to turn competition into cooperation. Chu stressed cooperating with Beijing No. 1 Machine Tools and Kaijieli will enhance mutual advantages.