Opposition Democratic Progressive Party (DPP) Chairwoman Tsai Ing-wen on Sunday rejected the government's argument that a trade pact with China is needed to counter the impact of the 'ASEAN plus One' free trade zone, saying Southeast Asian countries are not Taiwan's main competitors in China. In a debate on a proposed economic cooperation framework agreement (ECFA) between Taiwan and China, President Ma Ying-jeou said the new free trade zone, which took effect Jan. 1, has directly affected Taiwan's automobile, machinery, petrochemical and textile sectors. Those sectors are now faced with higher tariffs than their ASEAN competitors in the Chinese market, Ma said, and added that the DPP think tank's suggestion to let industrial sectors facing high tariffs move to China rather than signing the ECFA would leave some 590,000 workers in Taiwan jobless. In response, Tsai said that Japan and South Korea, and not ASEAN (Association of Southeast Asian Nations) countries, were Taiwan's main rivals in those sectors in China. She accused the president of exaggerating and overstating the impact of the 'ASEAN plus One' zone, and said that in a mature industrial sector, quality, innovation and value-added determined profitability more than tariffs on trade. Also, once the value of the Chinese yuan rises, triggering the likely rise in the appreciation of Taiwan's currency, any gains from the tariff reductions will be offset, Tsai argued. She also challenged Ma's belief that Taiwan will be further marginalized once Japan and South Korea join 'ASEAN plus One' and make it 'ASEAN plus Three,' reportedly in 2012. 'ASEAN plus Three will not be formed within the foreseeable future, ' she predicted, because of reluctance on the part of Japan and South Korea. The two countries not only fear that their domestic industries cannot withstand competitors from China, but also that a 'China-centric East Asian economic circle' will be formed, which they believe will change the strategic balance in the region, Tsai said. 