Foreign Correspondence

[Amaunet]

China's economic hold over Taiwan

TAIPEI: Beijing does not have to declare economic sanctions to strangle the Taiwan economy. All it has to do is have the governor of its central bank pick up the phone and tell all the government-owned banks - there are no privately owned commercial banks in China - that they cannot transfer any money out of country for any Taiwanese businesses on the mainland. So far as their business with Taiwan is concerned, the governor just tells the banks, money can come in from abroad but does not go out. In less than a half year, all Taiwanese businesses in China would have to close up shop. And the Taiwanese economy would go under in a couple of years. We are certain - almost positive - that Beijing is not going to choke the Taiwan economy for the time being. There is only one way to avoid that economic strangulation. Taipei has to reach a modus vivendi with Beijing as soon as practicable.
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China Post

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