Taiwan turning point<\/p>\n
For both political and security reasons, the Taiwanese
\ngovernment for years has kept strict official limits on trade and
\ninvestment between it and the mainland. And for their own
\nbusiness reasons, Taiwanese companies consistently have found
\nways around the rules.<\/p>\n
Now it appears Taipei is about to recognize this reality and
\nscrap the rules or at least rewrite them substantially. If it
\ndoes, and mainland China reciprocates, important cross-strait
\nchanges will be on the way. And their impact on Hong Kong would
\nbe significant.<\/p>\n
The changes include establishing the so-called three links
\nwith the mainland, allowing direct trade, transport and
\ncommunications between them. They also include scrapping Taiwan's
\n"no haste, be patient" policy on business investment in China,
\nwhich in theory limits the value of any single Taiwanese project
\nto US$50 million or less. And there seems to be an effort to
\nreturn to a form of the one-China policy first reached by Beijing
\nand Taipei in 1992 but since shelved. Under its terms, the two
\nsides agree there is only one China, but carefully avoid drafting
\na common interpretation about what that means.<\/p>\n
Meantime, various advisers in and out of the Government want
\nto bring back some version of the 1992 one-China agreement to
\nencourage progress on economic and other issues.<\/p>\n
Much depends on Beijing. It has opposed closer links unless
\nTaipei accepts a stricter definition of one-China, but that could
\nchange. Flexibility might erode Taiwan's deep suspicions about
\ngetting too close to the mainland, provided the Jiang Zemin
\ngovernment can be more innovative.<\/p>\n
In the short term, Hong Kong could be the loser because so
\nmuch trade and investment would no longer be channeled through
\nthe SAR. But over time, direct connections should promote
\neconomic growth throughout Greater China, with gains for all
\nregions.<\/p>\n
-- South China Morning Post, Hong Kong<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/taiwan-turning-point-1447899208", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }