Sunday, December 02, 2012

China Consumes Taiwan's Agriculture

Moon and raindrops

Several times on this blog I've noted that one of China's longterm goals is to hollow out Taiwan's productive industries, since Taiwan's strong economy is a powerful support for independence. This move has multiple prongs, including getting its industries to move to China, and stealing the island's production technology. A legislative report notes the effect of the latter effort on Taiwan's agriculture (Taipei Times):
It added that some Taiwanese strains of agricultural products grown or raised in China have also dealt a blow to Taiwanese farmers, as the farmers’ products have been sent back to the country because they were still prohibited from entering China. They included red carrots, pineapples, groupers, black tiger shrimps, abalone, butterfly orchids, carnations and mushrooms.

In the six years since 2006, China has acted “in a more systematic way” to lure Taiwan’s farming sector, with a total of 29 “Development Parks for Taiwan Farmers” established in 14 provinces as of this year, in addition to nine “Cross-Strait Agricultural Cooperative Experimental Zones” that have been set up since 1997, according to the report.

China not only offers Taiwan-funded enterprises in the agricultural parks a set of incentives in land acquisition, tax credits and lending, but also encourages and invites award-winning Taiwanese farmers to visit China through organized tours, or offer them money in exchange for seeds and techniques, the report said.

The report said that the 3,000 hectare Zhangping Yongfu Development Park for Taiwan Farmers, one of six in Fujian Province in southeast China, is being planted with oolong tea, all by Taiwan farmers from Nantou County, a famous tea-producing area, and is being developed into what China calls the “Alishan (阿里山) of China.”

It was estimated by Chinese research institutes that their annual production of oolong tea, which is under cultivation in the Zhangping Yongfu park, could be as high as three-fifths of the amount of high mountain oolong tea produced in Taiwan annually, the report said.
I've blogged on this before including this post from Nov 2011 on the bogus numbers on Agricultural Exports to China and this post on an enthusiastically awful NY Times piece. This month the government in Taiwan also moved to create a uniform fast track for agricultural exports. Why?
Local exporters have complained that without the mechanism, their products have often been detained in customs at Chinese ports pending quarantine checks, making it nearly impossible to get the products on the market while they are at their freshest.
This functions as an informal barrier to agricultural exports from Taiwan. Is it deliberate? Well, the old saw runs that you should never attribute to malice what can be explained by stupidity. Smuggling of agricultural goods from China, which has been going on for more than two decades, is almost never covered by the media. Sadly.
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6 comments:

les said...

"The report said that the 3,000 hectare Zhangping Yongfu Development Park for Taiwan Farmers, one of six in Fujian Province in southeast China, is being planted with oolong tea, all by Taiwan farmers from Nantou County, a famous tea-producing area, and is being developed into what China calls the “Alishan (阿里山) of China.”"

Is this then an admission that Alishan does not in fact reside in China? ;)

Michael Turton said...

LOL. Excellent point.

Hans said...

I think it's 大陸 or 內地 in the original and Taipei Times just "translated" it this way, as they often do.

Anonymous said...

Meanwhile Taiwan's government has managed to delay the import of American pet food for 20 months so far. Documentary requirements change every week or so.

I have very little sympathy for Taiwan when they engage in the same games as China does in support of their own industries vis a vis their largest ally the USA and others.

Maybe Taiwan should lead by example and open their own markets.

For example, tariffs were lowered against kiwis, apples and nectarines.

I guess those were in place to protect Taiwanese growers of kiwis, apples, and nectarines against nefarious New Zealand, Chile, and the USA. God forbid Taiwanese consumers choose a kiwi instead of a local fruit.

Taiwan is a small market that depends on trade for a living, and should start acting like it instead of attempting to defend its agricultural sector to the last banana or bull head persimmon.



Readin said...

"Meanwhile Taiwan's government has managed to delay the import of American pet food for 20 months so far. Documentary requirements change every week or so."

At least Taiwan has a trade agreement with China. America seems unwilling to make such an agreement with Taiwan. The time to make an FTA with Taiwan was 20 years ago, or maybe 15 years ago, or 10 years ago, or even 5 years ago. Instead America has waited until Taiwan has been sucked into China's grasp and we still aren't offering an FTA?

Why is it that the stupidest things America does are about the only issues that get bipartisan agreement?

It's hard to have sympathy for America's inability to sell pet food in Taiwan when America has been refusing to consider an FTA with Taiwan for decades. An FTA set up years ago would have strengthened Taiwan's economy so that it 1. wouldn't have to become so reliant on China, 2. could afford to buy more weapons from America and 3. would make Taiwan more responsive to America's concerns about things like the Senkaku Islands.

les said...

Meanwhile, it now takes 10 days for Taiwanese goods to get to market in China, while goods can come the other way in 5. Way to go.