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Cross-Straits trade in spotlight at historic meeting

By Bao Daozu (China Daily)
Updated: 2009-04-25 08:52

Trade barriers between the mainland and Taiwan are expected to be relaxed during a historic meeting in the Chinese city of Nanjing on Sunday.

Chen Yunlin, chairman of the Association for Relations Across the Taiwan Straits (ARATS), and Chiang Pin-kung, president of the Taiwan-based Straits Exchange Foundation (SEF) will sign three agreements covering economic cooperation, efforts to tackle crime, and regular cross-Straits flights during their third round talks in less than a year.

The two sides will also exchange views on mainland investment in Taiwan and discuss an agenda for the fourth round of talks to be held later this year on the island.

Related readings:  Chinese mainland would push trade pact with Taiwan  Lending to Taiwan companies rises  Taiwan to allow investments in mainland futures  Slowdown could aid ties with Taiwan

Speaking at a press conference on Friday, Chiang said the meeting was about "cooperation and win-win results" and that he hoped it would bear "substantial fruits".

Regular flights would ease the current shortage by increasing the number of both flights and terminals, while judicial cooperation would be conducive to safeguarding social security on both sides as well as tackling criminal cases involving both sides of the Straits, Chiang said.

Financial cooperation would help the two sides cope with the impact brought by the international financial turmoil, and the mainland investment in Taiwan could inject fresh capital for the island and create more jobs, he added.

Chiang said previous agreements between the two sides had set down principles for negotiations between the two sides - that is, applying a practical and gradual approach of economics before politics and putting the easy problems before the difficult ones.

Zhang Guanhua, deputy director of the institute of Taiwan studies under the Chinese Academy of Social Sciences, said an agreement on mainland investment would be signed in the future and that a policy had already been drawn up in Taiwan in preparation for a deal.

Taiwan companies can already invest in the mainland but more than 2,000 mainland products are still barred from the island.

In Taiwan, "Economic Minister" Yiin Chii-Ming said 30 percent of its manufacturing industry would be eligible for mainland investment, according to China Post.

Sun Jian, CEO of a mainland's biggest hotel franchise, said he was "eagerly anticipating investment in Taiwan because an increasing number of mainland tourists were visiting the island."

Fan Min, CEO of online travel website Ctrip, also said he wanted to capitalize on new business opportunities.

Zhang said the new deal on economic cooperation would be good news for Taiwanese businessmen.

"The Taiwan financial firms, such as banks and insurance companies are facing bitter competition and the opening of the mainland market will give them a larger stage," Zhang said.

"Taiwanese businessmen who run businesses on the mainland will have easier access to financing because Taiwan banks are to be allowed to open there," he added.

Liu Jingfang, general manager of Nantong Quanyong Electronic Industry Company and chairwoman of the Taiwan Business Association, said she hoped the deal on economic cooperation would help small- and medium-sized enterprises (SME) with financing.

"I hope the meeting in the weekend will find a concrete solution," she said.

The ARATS and SEF agreed to meet twice a year in the mainland and Taiwan in turn, after cross-Straits negotiations resumed last June following an almost 10-year suspension.

During the previous two talks, the ARATS and SEF leaders signed agreements on weekend charter flights, tourism, direct shipping, air transport, postal services and food safety.