China and Taiwan have formed a trade agreement that could result in Chinese medicine suppliers selling directly to Taiwan medicine shops. Although China ensured the people of Taiwan that both countries would reap the benefits of this agreement, many are very sceptical especially the people of Taiwan. A lot of the medicine sold in Taiwan is imported from mainland China, however Taiwan's domestic medicines have always maintained an upper hand due to the tariffs that kept Chinese prices higher than Taiwan's prices. This advantage will be eliminated by the trade agreement which, if approved, will leave Taiwan businesses straggling behind the Chinese firms. As a result, Chinese goods will have lower prices so importing them, especially as wholesale will drive Taiwanese medicine suppliers out of business.
This is not the first agreement between the two after a major agreement known as the services trade agreement was established between the two was settled in 2010. China has opened up 80 types of industries in its booming services sector to Taiwanese companies, while Taiwan has opened up just 64 industry sectors, including Chinese medicine wholesale. Taiwan have benefited from the investment and increased market access the agreement has enabled them to have.
However is there more than meets the eye to this agreement? Taiwan has a strong manufacturing industry which is continually growing. So are China taking measures to sustain their own growth by uprooting their competitors before they begin to blossom? As Andrew Bottone said "it's survival of the fittest."
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