ECFA Ripened And Fallen &Nbsp, Mutual Benefit On Both Sides Of The Straits.

In June 29th, the ARATS held a signing ceremony with the SEF on the framework agreement on Cross Straits Economic Cooperation (ECFA) and the cooperation agreement on intellectual property protection between the two sides of the Taiwan Straits.

The formal signing of ECFA marks the entry into the institutionalized track of cross-strait economic and trade cooperation. This is another major breakthrough in the economic and trade relations between the two sides following the comprehensive implementation of the "three links" last year, and the cross-strait economic relations have entered a new era.

ECFA shows that the mainland's profit making measures have taken care of the interests of small and medium-sized enterprises in Taiwan and the broad masses of farmers. It is of positive significance for the people of Taiwan to recognize and support the peaceful development of both sides.

The cross-strait exchanges are becoming increasingly close. Hongkong's intermediary position in the two sides is also facing challenges and opportunities. Hongkong should make good use of its own financial advantages to find new positions in cross-strait economic and trade cooperation.

It is estimated that ECFA can save nearly $10 billion of Taiwan's tariffs every year, which fully shows that the mainland is giving profits to Taiwan on the ECFA.

The ECFA framework covers the major economic and trade activities between the two sides of the Strait, which will help to boost Taiwan's domestic exports and stimulate the economy of the island.

Taiwan is an export-oriented economy with a shortage of resources on the island, and export trade is the lifeblood of Taiwan's economy.

In recent years, to cope with the economic situation in Europe and the United States, the regional economy has accelerated in various places. If Taiwan still sits on the island, it will only aggravate the economy and the people's livelihood.

ECFA will inject momentum into Taiwan's economy and resolve Taiwan's "Marginalization" dilemma in regional economic integration.

Moreover, ECFA relaxed the import of Taiwan's agricultural products to the mainland, welcomed by Taiwan farmers, and many of Taiwan's peasants were supporters of the green camp. ECFA helped to eliminate their opposition to the mainland and curb the "Taiwan independence" forces.

It should be noted that ECFA is similar to the CEPA signed by the mainland and Hongkong.

Under the principle of "one country, two systems", CEPA has established institutional cooperation by eliminating tariff and non-tariff barriers, relaxing market access conditions, reducing examination and approval links and improving customs clearance efficiency. It has promoted economic and trade exchanges and economic integration between the mainland and Hongkong, and has injected a "strong heart" into Hongkong's economy.

The concept of "one country, two systems" was first proposed to solve the Taiwan issue, but first successful practice in Hongkong played an important exemplary role in Taiwan.

Applying CEPA's successful experience to cross-strait economic and trade relations has far-reaching significance for the peaceful development of both sides.

In the past, Hongkong played an important intermediary role between the two sides of the Strait. ECFA inevitably affected Hongkong's traditional intermediary status.

But cross-strait economic and trade integration is both a challenge and an opportunity for Hongkong.

The scale of cross-strait economic expansion has also provided Hongkong with a broader space for development.

Hongkong banks can enter the mainland market step by step, but the strength and internationalization level are difficult to match with the Hong Kong funded banks. Moreover, the Bank of Hongkong has been operating in the mainland for many years, and it is still the ideal choice for Taiwan's enterprises to raise funds on both sides of the Straits.

On the one hand, Hong Kong should consolidate the advantages of the financial sector, especially in the field of RMB business. On the other hand, it should cooperate with the two sides in the protection of intellectual property rights, accelerate the development of testing and certification industries, and enhance our competitive edge.