Since the inauguration of the China-ASEAN free trade area this year, most goods traded within the region have been granted tariff-free treatment, while Taiwan exports to the region are still subject to duties of up to 10 percent.

The government is thus seeking to sign an economic cooperation framework agreement (ECFA) with China in the first half of this year to offset the impact on Taiwan.

This is what the government ought to do. But the way the government dealt with the issue of U.S. beef imports has demonstrated the deficiencies and lack of credibility of its administrative abilities. The government may fail to sign the agreement within the targeted deadline. Even it is signed, it may lead to major controversies and rifts within the nation. In either case, it will have an inestimable impact on Taiwan's society and economy.

Secondly, the coming into effect of cross-Taiwan Strait memorandums of understanding on financial supervision and regulation have facilitated closer financial exchanges between the sides. It remains to be seen whether the government will adopt a more liberal approach to allow professional judgement and the market to guide acquisitions and investment by businesses, or yield to certain populist forces and block these cases. The government's attitude will influence foreign investors' perception of Taiwan and the future development of the country's economy and financial markets.

In addition, we are looking to see if the government will further lift restrictions on investment toward China or allow Taiwan's businesses to lose their global competitiveness because of its stupidity.

We expect the government to have the ability to accomplish the things that it ought to do and also expect it to avoid "doing stupid things."