Trade Minister Calls for Taiwan to Set up Links

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Last updated at: (Beijing Time) Friday, February 01, 2002

Trade Minister Calls for Taiwan to Set up Links

A senior mainland foreign-trade official Thursday urged the Taiwan authorities to abolish all "unreasonable'' limitations on cross-Straits economic exchanges to pave the way for the establishment of the so-called three direct links.

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An Min, vice-minister of foreign trade and economic co-operation, told a seminar that Taipei should not put hurdles before the development of bilateral economic ties for political reasons.

About 70 trade and transportation officials and business people attended the event to commemorate the seventh anniversary of a key Taiwan policy speech by President Jiang Zemin.

Refusal of three direct links hampering cross-Straits trade

An said the absence of the three direct links -- on trade, transport and postal services -- has become a major stumbling block to cross-Straits economic co-operation following the entry of both Taiwan and the mainland into the World Trade Organization.

Citing security reasons, Taipei has imposed a decades-old ban on the three direct links between the two sides of the Taiwan Straits.

The ban is estimated to cost both sides hundreds of millions of US dollars each year in extra costs due to rerouted transportation.

An said: "The Taiwan authorities' stubborn refusal to set up the three direct links is against the will of the people because it has made cross-Straits economic exchanges unilateral and indirect and thus directly affected Taiwan's economic development.''

The vice-minister warned that the trade restrictions may undermine prospects for a higher level of mutual dependence between the economies of Taiwan and the mainland, which are highly complementary.

Cross-Straits trade cooperation

By the end of last year, the volume of indirect cross-Straits trade amounted to US$220 billion.

Meanwhile, the number of Taiwanese-funded projects on the mainland topped 53,600, with contracted investment of more than US$54 billion.

Taiwan is now the Chinese mainland's fifth-largest trading partner and its second-largest export market.

The mainland is Taiwan's second-largest export destination and the largest source of Taiwan's trade surplus, according to mainland's official statistics.

An said the both sides' WTO membership and the mainland's huge business potential are set to bring a historic opportunity for closer economic integration between Taiwan and the mainland.

"So we hope the Taiwan authorities will set up the three direct links at an early date, develop cross-Straits trade exchanges in a bilateral and direct way and expand the scope for bilateral economic co-operation,'' he said.

Three direct links should be handled as internal affairs

Hong Shanxiang, vice-minister of communications, said there is no technical problem hampering the opening of the three direct links because the relevant industries on both sides have made ample preparations.

"The conditions (for establishing the three direct links) have been ripe on both sides and the only obstruction comes from the Taiwan authorities,'' Hong said.

He urged the Taiwan authorities to accept the mainland's proposal that the three direct links should be handled as the internal affairs of a single country.

Under such a condition, the establishment of the three links may be solved through people-to-people, industry-to-industry and company-to-company consultation, Hong said.

Bao Peide, vice-minister of the Civil Aviation Administration of China, revealed that Beijing demands that cross-Straits transportation routes be regarded as "specially managed domestic routes'' that may adopt some standards and practices used on international routes.

But Taipei insists that cross-Straits transportation routes be treated as "specially managed international routes.''

Taiwan will Open its Service Trade to Chinese Mainland in Two phases

According to the news of January 17 from Taiwan, the Island province "Executive Yuan" has approved a list of 58 business items in detail to be opened for investment from China's mainland.

Taiwan will at the initial stage open for indirect investment, and the second stage will see the direct investment opened for the capital from China's mainland to Taiwan. And this is to be followed with the evaluation and planning in future for the capital from China's mainland to invest in Taiwan's securities and bonds market in view of the run of opportunities and conditions. Full Text

Taiwan Authorities Urged to Consider Seriously Again on "Three Links"

The Taiwan authorities are urged to consider seriously again the suggestions by China's mainland in which the "three links" and the economic and trade relations across the Straits will be taken as China's internal affairs, said Tang Shubei January 8.

After the two sides joined the WTO one after another, and along with the further development of the economic and trade relations across the Straits, it is quite necessary for the two sides to have an equal consultation on how to handle the economic and trade affairs and the relevant problems. Full Text

Source: China Daily

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