President Tsai Ing-wen’s Southbound Policy does not mean giving up the China market. That’s according to James Huang, head of the office for implementing the policy.
The Southbound Policy is intended to diversify Taiwan’s trade by seeking closer ties with countries in Southeast Asia and with India. At the same time its goal is to avoid an overdependence on the Mainland China market. But Huang said Tuesday that this does not mean abandoning the Chinese market.
Huang said, "Given Taiwan’s geographical location, it will always play a crucial role in [trade] to the south. But I would hope to make very clear that while we are actively promoting the Southbound Policy, this does not mean that we wish to abandon the Mainland China market."
Huang also pointed out that China’s own close economic ties with Southeast Asia and major investment projects can mean opportunities for Taiwanese businesses.
Huang also said that the Southbound Policy was not the same as the government’s Go South policy in the 1990s. That policy was based on the idea of “cost down,” while the new policy aims to “value up,” with a greater focus on two-way trade, Huang said.