BEIJING, April 27-- Chinese mainland companies can
soon invest in Taiwan for the first time in six decades.
The mainland and Taiwan Sunday agreed on the
long-awaited move at the third cross-Straits talks between the Association for
Relations Across the Taiwan Straits (ARATS) and the Straits Exchange Foundation
(SEF).
ARATS, representing the mainland, and the
Taiwan-based SEF signed three agreements to replace chartered flights with
regular ones, jointly combat crime and boost cooperation in finance.
Taiwan sincerely welcomes mainland companies and
will expand the field for them gradually, SEF said in a statement. The details
of the investment regulations will be "announced in one to two months", SEF
Vice-Chairman Kao Koong-lian told a press conference.
Zhang Guanhua, deputy director of the Chinese Academy
of Social Sciences' institute of Taiwan studies, said the move is "vital to the
realization of direct trade across the Straits".
The central government has been calling for direct
cross-Straits links in transport, postal services and trade since 1979, and
allowed Taiwan companies to invest on the mainland in the 1980s.
But mainland companies were not allowed to invest in
Taiwan. Only the mainland's real estate companies can enter the island's market
at present, and that too under strict conditions.
"Since the top negotiators of ARATS and SEF have
agreed on the investment issue and Taiwan has promised to take specific measures
within two months, mainland companies should be able to invest in the island
soon. This will turn the one-way investment process into a two-way affair,"
Zhang said.
The Taiwan authorities have been trying to boost
cross-Straits relations since the end of last year and hope to seek the
mainland's cooperation in industrial sectors, including in solar energy, herbal
medicine, automobiles and aviation, Zhang said. It's these areas that are likely
to be the first to be opened to mainland companies.
"Companies in these areas may have a greater chance
of investing in Taiwan since the island authorities are eager to seek
cooperation in these fields," Zhang said.
The Taiwan authorities, however, may not allow
mainland investment in the island's pillar industries such as semiconductors for
the time being, Zhang said.
"Nevertheless, as the cooperation progresses, I
believe the scope for mainland companies will widen," he said.
ARATS and SEF signed an agreement yesterday to set up
a regulatory framework for financial services firms to invest and do business in
each other's markets. They agreed to gradually set up a clearing system for the
Taiwan dollar and the yuan.
"This will drive new investment in the domestic
market and bring strong interest from foreigners as well," Reuters quoted
Standard Chartered economist Tony Phoo as having said.
"Even though there's nothing really (unexpected) that
came out, it's something positive - something that's been holding back for too
long," he said.
High hopes over the deals have supercharged Taiwan's
stock market this year, making it the world's best performer after Shanghai.
(Source: China Daily)
ARATS, SEF sign agreements on regular
flights, financial, judicial co-op
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Chen Yunlin, president of the mainland's
Association for Relations Across the Taiwan Straits (ARATS), holds talks
with Chiang Pin-kung, chairman of the Taiwan-based Straits Exchange
Foundation (SEF), in Nanjing, east China's Jiangsu Province, on April 26,
2009. This was the third round of talks between them in less than a
year. (Xinhua/Sun Can)
Photo
Gallery>>> |
NANJING, April 26 (Xinhua) -- The Chinese mainland and Taiwan signed on Sunday
three agreements on opening regular flights, boosting cooperation in finance and
cracking down on crime, foretelling the realization of decades-long aspiration
of comprehensive, direct and two-way links between the two sides.
Chen Yunlin, president of the mainland-based Association
for Relations Across the Taiwan Straits (ARATS), and Chiang Pin-kung, chairman
of the Taiwan-based Straits Exchange Foundation (SEF), signed the agreements in
Nanjing, capital of the east Jiangsu Province. Full story
Mainland, Taiwan top negotiators hold
talks in Nanjing
NANJING, April 26 (Xinhua) -- Top negotiators from the
mainland and Taiwan said here Sunday that the two sides should work together to
overcome the difficulties amid the global financial downturn, which was exerting
an enormous negative impact on economies of the two sides.
"Although the economic growth of the mainland was better
than expected, the mainland is still facing the pressure of a downward economic
growth. And the island's economy also faces many difficulties, despite a series
of measures taken by the local authority," said Chen Yunlin, president of the
mainland's Association for Relations Across the Taiwan Straits (ARATS), in talks
with his Taiwan counterpart Chiang Pin-kung on cross-straits relations in
Nanjing, Jiangsu, on Sunday morning. Full story
Mainland, Taiwan negotiators
underscore economic exchanges, co-op
NANJING, April 25 (Xinhua) -- Negotiators from the Chinese
mainland and Taiwan on Saturday stressed the significance of enhanced
cross-Straits economic exchanges and cooperation amid the international
financial turmoil.
Zheng Lizhong, deputy chief of the mainland-based
Association for Relations Across the Taiwan Straits (ARATS), said the
international financial turmoil has brought new challenges to economic
development across the Taiwan Straits. Full story
