China wants ECFA approved as is

Wang Yi, China's top official handling Taiwan affairs, asked that the economic cooperation framework agreement (ECFA) signed recently between both sides be implemented as it is, according to the United Evening News.

Taiwan and China earlier this year signed the ECFA, opening their markets to certain products from the other side.

Wang, speaking in Shangdong at a forum on economic cooperation between Taiwan and the eastern Chinese province, said the establishment of the committee will facilitate work under the ECFA and provide protection for both sides, reported the paper.

He said the economic cooperation committee should be set up under the current framework that sees both sides' semi-official bodies handle cross-strait ties.

The ECFA was signed between Taiwan's Strait Exchange Foundation (SEF) and China's Association for Relations Across the Taiwan Strait (ARATS) on behalf of their respective governments.

Wang, who heads the State Council's Taiwan Affairs Office, said the structure and members of the committee will have to be confirmed as soon as possible to facilitate the economic cooperation across the strait.

The committee will work under four principles: negotiations on equal footings, sincere communication, mutual benefits, and transparency, he said.

Following market mechanisms, China hopes Taiwan can gradually open its doors to Chinese investors, Wang said.

China hopes relevant measures will be in place to offer Chinese investors an environment for fair competition, he added.

According to the official, China will also work to help transform Taiwanese enterprises operating in the country into sustainable businesses.

The Chinese government will help expand these Taiwanese businesses' sales channels in the country and raise their added-value.

In response to Wang's call, a Taiwan economics official said opening the island to Chinese investors can come after both sides sign an investment protection agreement.

Fan Liang-tung, executive secretary of the economics ministry's investment commission, noted Taiwan's concerns over national security in economic exchanges with China.

He said the huge difference in the sizes of China's and Taiwan's economy and the sensitive political situations across the strait call for a steady approach to opening the island to Chinese investments.

At the initial stages, there must be restrictions, with Chinese investments to be allowed in selected industries, Fan said.

These Chinese investments would be expect to benefit the development of Taiwan's existing industries, he said.

Without restrictions, Taiwan's market could be easily dominated by China enterprises, he said.

The United Evening News cited unnamed sources from Taiwan's Mainland Affairs Council (MAC) as saying that Wang's remarks were in line with the principles of ECFA.

Once the ECFA takes effect, the process of forming the economic cooperation committee will begin, the officials said.

Taiwan's Legislature has already endorsed the ECFA, which is expected to take effect in mid-September.

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