Meeting urges Taiwan's president to ease limits on investing in China
Meeting urges Taiwan's president to ease limits on investing in China
TAIPEI (AP): A group of influential advisers on Sunday urged
Taiwan's president to relax limits on commercial ties with rival
China, a historic move business leaders say would boost Taiwan's
sputtering economy and create a bustling trading zone.
For years, Taiwanese have been arguing about expanding trade
relations with China. Critics have warned that further opening up
to the mainland would drain away precious capital and jobs and
make the island too reliant on its biggest military threat.
But on Sunday, a high-profile group of 120 presidential
advisers urged President Chen Shui-bian to relax Taiwan's
"patience over haste" policy, which puts a US$50-million cap on
single investments in China.
Calling the event "a success," the president said he was
"extremely pleased" with the outcome of the meeting, and promised
that his Cabinet "would cooperate" with the opposition-controlled
legislature to implement the group's consensus.
Chen said that within two weeks, his government will come up
with a comprehensive strategy based on the group's
recommendations.
Tsai Ing-wen, a member of the group and Taiwan's top official
for China policy, said the panel's proposal was "a significant
step forward."
"This is a clear demonstration from our side that we are
prepared to take the risk and take a positive attitude toward
China," Tsai said.
Tsai said that requests to invest more than $50 million should
be considered on a case-by-case basis under a new policy of
"proactive openness and effective management."
Taiwan broke away from China in 1949 when the Communist Party
took over the mainland. Although political relations remain icy
and Beijing has repeatedly threatened to invade, business ties
are flourishing.
Since Taiwan began loosening restrictions on trade a decade
ago, Taiwanese firms have invested an estimated $60 billion in
China. About 40 percent of Taiwan's outward investment goes to
the mainland.
In the mid 1990s, Taiwan became worried that it was becoming
too intertwined with China's economy. Many feared that the
communist regime might try to force reunification by holding
Taiwanese investments hostage. The "patience over haste" policy
was crafted in 1996 to limit Taiwan's reliance on the Chinese
market.
In recent years, Taiwanese firms have complained that they are
severely handicapped in China's booming market. They have also
argued that Taiwan is missing the growing trend of globalization.
The voices have become louder in the past year, as Taiwan's
economy began slipping toward its first recession in three
decades.
The council did not agree on specific new policies that would
end a five-decade ban direct shipping and aviation links between
China and Taiwan's main island. The group acknowledged that such
a move requires bilateral negotiations - which China has refused
to join.
The council also failed to reach a consensus on how to resolve
a long-standing dispute with China over Taiwan's political
status. China wants Taiwan to agree the island is an inseparable
part of China as a precondition for talks. However, the Taiwanese
president is wary about accepting Beijing's vague "one-China
principle" and wants to discuss it at a summit.
Taiwan's top envoy to China, Koo Chen-fu, was not discouraged
about the lack of consensus on the issue.
"The time for us to talk will definitely come," said Koo, a
council member.
The council also agreed that Taiwan should:
-allow banks to set up branches or subsidiary offices in
China.
-relax restrictions on Chinese investments in Taiwan in
accordance with World Trade Organization rules.
-create a flexible mechanism for monetary transfers and direct
remittances between the two sides.