A Study On Industrial Competition And Cooperation Between Chinese Mainland And Taiwan

Over the past 30 years,the achievements made in the economic and trade cooperation between Mainland and Taiwan have continuously promoted the development of cross-Strait relations.The cross-Strait industrial cooperation is an important carrier of economic and trade,and it has a crucial influence on the development of cross-Strait economic relations.For a long time,with the continuous progress in the industrial transfer and the division of labor in globalization,Mainland and Taiwan have built on the intra-industry and inter-industry division of labor,relying on their own resource endowments.The cross-Strait industrial structure is highly complementary and enhances the common interests of people in Mainland and Taiwan.The industrial interaction has become an important force in promoting the development of cross-Strait relations.However,since 2008,the international financial crisis and European debt crisis have erupted one after another.Crisises have had a serious impact on the traditional global value chains.At the same time,the economies of Mainland and Taiwan are also in a critical period of transformation and upgrading of industrial structure.Industrial relations between the two sides of the Strait have gradually shifted from highly complementary to increasing the competitiveness of some industries.It has had a certain impact on Taiwan' s economy and society.It is hyped as the "red supply chain" problem by public opinion and political power.In this context,this article studies the cross-Strait industrial competitiveness and cooperative relationship in the following aspects:(1)Based on the global value chains theory,the model of cross-Strait industrial cooperation has been redefined.The performance of the industrial cooperation in Mainland market and international markets(such as the European Union and the United States)were calculated to clarify the profitability of cross-Strait industrial cooperation.The results show that Taiwan' s performance has grown rapidly in Mainland market.Intermediate products and components accounted for an absolute dominant position.The industries that are mainly concentrated in the computer,electronic and optical product manufacturing,chemical product manufacturing,mechanical product manufacturing and other manufacturing fields,as well as wholesale,financial and other service industries.In international market,Taiwan indirectly exports products to the international market through Mainland.The market performance of the European Union and the United States accounts for about 40%.The distribution of related industry is mainly concentrated in the manufacturing of computers,electronics,and optical products.The degree of concentration is as high as 50-60%.(2)Based on the market share accounted by the value added,the competition status of the cross-strait industries in Mainland and international markets are calculated separately.The research shows that:1.In Mainland market,the cross-Strait industrial substitution relationship has reversed in different periods.In the early period,the Taiwan industries replaced Mainland industries.In the later period,Mainland industries replaced the Taiwan industries.The industries mainly include computer,electronics and optical product manufacturing,chemical product manufacturing,basic metals,and wholesale,etc.2.The cross-Strait industry' s competitiveness in the international market is significantly weaker than that of Mainland market,but it maintains the situation that Mainland industries replace Taiwan industries.Industries with substitution relationship is more concentrated in the manufacturing of computers,electronics,and optical products.3.Whether in Mainland market or in the international market,Mainland is one of the main sources of substitution for Taiwan's industries.More noteworthy,there has been a joint substitution effect on Taiwan's industry among the various economies.(3)The influencing factors of cross-Strait industry competition and cooperation are analyzed from two aspects:economic and industrial policy.In economic terms.changes in the global economic environment have led to increased competition among economies.Due to the narrowing of labor wage and industrial development level,the complementarity of industries across the Straits is decreasing and competitiveness is enhanced.Through the comparison of industrial planning policies,it is found that there is a high degree of coincidence in the key areas of industrial development across the Strait.In the future,if the cross-Strait industryies develop independently,that may lead to the expansion of competition from a small number of industries to the entire supply system.It in turn may result in a "value chain replacement" impact on Taiwan.(4)In addition to these above,this paper also studies the political and economic effects of cross-Strait industry competition and cooperation.Increased competitiveness between Mainland and Taiwan's industries will reduce Taiwan's profitability in cross-Strait economic and trade relations,and thus affect the distribution of related interests across the Strait.The increased competitiveness of industries across the Taiwan Strait will also have an impact on the distribution of benefits within Taiwan's society.For example,it will have a direct impact on Taiwan's manufacturing industry at first.and then it will affect the profitability of the service industry indirectly.Second,it will have a greater negative impact on SMEs.In short,it will worsen Taiwan' s internal economic and social problems.Especially in the traditional competitive areas of Taiwan,the competitiveness increasing will have a psychological impact on the people.It may adversely affect the peaceful development of cross-Strait relations.(5)This article also discusses the rational distribution of industries between Mainland and Taiwan in the future.It is believed that cross-Strait industrial cooperation should develop in the direction of cross-Strait industry integration.In detail,in the traditional global supply chain system,the two sides of the Taiwan Strait should join hands to move toward the higher end of the global value chains in order to enhance the competitiveness of the cross-Strait industry;In "The Belt and Road"initiative advocated by Mainland,the cross-Strait industries have the opportunity to establish a highly integrated,benign and interactive industrial development system.