By Ted Chen ,The China Post

TAIPEI, Taiwan — The Ministry of Economic Affairs (MOEA) yesterday rejected media reports suggesting that China will wreak havoc on Taiwan’s economy, following the inking of a service industries trade pact.

Most notably, the MOEA denied reports that China is poised to crowd out local operators by bringing in its own vertically integrated supply chains in various service industries.

The ministry emphasized that the terms of the service pact do not include the possibility for mainland enterprises to bring in their own vertically integrated supply chains. For example, in the travel agency industry, Chinese operators in Taiwan may only cater to local tourist attractions, while major service offerings such as the bookings of international flights, and tour packages to China and the rest of the world are prohibited were excluded from the terms of the trade pact. For the publishing industry, the MOEA stated that the intellectual properties of local content providers will be protected by a cross-strait accord. Included in the accord are terms concerning the enforcement of patents, trademarks, and the priority in utilization of specialty crop strains. The ministry also pledged to assist Taiwanese enterprises in having their trademarks and patents recognized in China.

The ministry stated that Taiwan’s music industry is already benefiting from an intellectual rights protection agreement with China, the fruits of its tireless efforts in cross-strait negotiations.