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China lets Taiwan invest in shipping, containers

Monday, April 30, 2007
By Benjamin Kang Lim BEIJING, Reuters


China said on Sunday it will let Taiwan invest in wholly owned shipping and container transport firms and operate ports and highways, in Beijing's latest attempt to woo the island with economic sweeteners.

There was no timetable as the unilateral announcement by Vice Communications Minister Xu Zuyuan at the Cross-Strait Trade and Economic Forum in the Chinese capital needs the blessing of Taiwan President Chen Shui-bian's pro-independence government.

"I hope this forum can further enhance development and cooperation between shipping sectors across the (Taiwan) Strait," Xu said in a speech as the two-day forum came to an end.

Chinese President Hu Jintao dangled the carrot of the country's booming economy and vast market at the forum on Saturday, part of campaign to win hearts and minds on the self-ruled island which Beijing claims as its own.

About 500 businessmen and officials from China's ruling Communist Party and Taiwan's main opposition Nationalist Party, or Kuomintang (KMT), attended the forum -- the third since 2005 when China rolled out the red carpet for Taiwan opposition leaders as part of a divide-and-rule gambit to isolate the island's ruling party.

Gao Hongfeng, deputy director of the Civil Aviation Administration of China, told the forum the number of Chinese cities handling direct charter flights between China and Taiwan will be increased to 10 from four.

The six cities are: Chengdu and Guilin in China's southwest, eastern Hangzhou and Nanjing, southern Shenzhen and northeastern Dalian.

Taiwan has banned direct air and shipping links with China since 1949 due to security fears. But the two sides exchanged nonstop charter flights for the first time in more than five decades in 2005 to accommodate the demands of Taiwan businessmen, who have poured up to US$100 billion into China.

Shao Qiwei, director of China's National Tourism Administration, criticized Taiwan for its "passive attitude" and for dragging its feet on allowing Chinese tourists to visit.

Chinese Public Security Vice Minister Meng Hongwei said the number of Chinese cities issuing visas to Taiwan tourists will be increased by three to 11 effective May 15.

China's Personnel Vice Minister Wang Xiaochu said Taiwan residents can work in China if they pass qualification exams for 15 professions, including accountants, doctors and engineers.

The olive branch came days after a row between China and Taiwan over the 2008 Olympic torch route.

The KMT, which favors better ties with China, hopes deals clinched at the forum will help the island's economy and its chances of winning parliamentary elections in December and presidential elections next March.

Despite the political standoff, trade, investment and tourism between the two sides have blossomed. Taiwan investors have been lured by a common language and culture, China's low land and labor costs, its proximity and vast market and booming economy.

Taiwan is growing more dependent on its neighbor economically despite icy political ties. The island posted a trade surplus of US$27 billion with China in 2006, up from US$23.5 billion in 2005.

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