Ma is advocating the “common market” changes ahead of the March 2008 election to push Taiwan’s economy forward, campaign spokesman Lo Chi-chiang said.

Ma, who is also a former Taipei mayor, wants an end to the 40 percent cap on Taiwan firms investing in China, a policy designed to keep money on the island and reduce economic reliance on its giant neighbour.

Under the current cap, no more than 40 percent of any firm’s net value can be invested in its China operations.

He would also push for a pact similar to the Closer Economic Partnership Arrangement (CEPA) agreement that Hong Kong has with China but not use the “CEPA” label for political reasons, Lo said.

“It’s not the name that’s important, it’s the content that matters,” he said.

As a complementary move, Ma would try to establish Taiwan as a free-trade area similar to Hong Kong, Singapore and South Korea, Lo said.

Ma first made the pledges on June 23, when he picked ex-premier Vincent Siew, a former economics minister, as his running mate. Siew advocated nearly identical economic policies when in office.

Ma has also pledged to raise Taiwan’s GDP growth to 6 percent, from 4 to 5 percent since 2005.

He also aims to raise per-capita GDP to US$20,000 by 2011 and to lower the unemployment rate to less than 3 percent from the current 3.95 percent.

As the campaign heats up, Ma’s plan has drawn fire from President Chen Shui-bian and rival 2008 candidate Frank Hsieh, whose party has sought to limit ties with China and pursue greater independence.

Hsieh fears Ma’s plan would overexpose Taiwan’s economy to China while allowing Chinese people to enter more freely, as if Taiwan were a special region under Beijing, his spokesman Chao Tien-lin said.

“Singapore and South Korea are not advocating a common market,” Chao said. “That’s more like a European Union.”

Hsieh advocates negotiations with Beijing before deciding anything, Chao said.