Mainland ready to help Taiwan weather economic crisis

By Zhang Fengming  |   2008-12-20  |     ONLINE EDITION

China's mainland is willing to do its utmost to help Taiwan weather the global financial crisis if needed when the world economy deteriorates, one of the top leaders of the Communist Party of China said today in Shanghai.

"The two sides should strengthen cooperation to weather the impact from the global financial tsunami," said Jia Qinglin, a member of the Standing Committee of the Communist Party of China Central Committee Political Bureau. "The mainland is willing to do its utmost to help Taiwan solve its economic difficulties if needed once the global economy worsens."

Jia, also chairman of the National Committee of the Chinese People's Political Consultative Conference, today delivered a speech to open the two-day Fourth Cross-Straits Economic, Trade and Cultural Forum.

The Chinese mainland has already taken efforts to buffer the hit from the global downturn. The mainland in November announced a 4-trillion-yuan (US$586 billion) stimulus package by 2010, including massive infrastructure projects. The measures, which will buoy domestic economy, will also offer opportunities for companies from Taiwan, he said.

The Chinese mainland has approved more than 77,000 projects involving investment from Taiwan by the end of October, attracting realized investment of more than US$47 billion. The accumulated trades across the two sides topped US$840 billion, he said.

Jia said the two sides should seek a deeper cooperation in more economic areas, including financial, agricultural, oil and gas development, pharmaceutical and high-tech sectors.

Jia said the two sides should discuss establishing a currency clearing system and set up a monitoring mechanism for banks, insurance firms and securities companies.

More progress is expected to smooth the process for financial institutions to set up branches or outlets at each other's side.

"We support mainland enterprises to invest in Taiwan ," Jia said.

Prominent political figures from Taiwan including Kuomintang Chairman Wu Poh-hsiung and Honorary Chairman Lien Chan also attended the forum. More than 400 businessmen, academics and officials of the Communist Party and Taiwan's ruling Kuomintang attended the forum.

Lien said the discussion to set up a cross-Strait economic cooperation scheme was of "strategic significance" and needs "all-out efforts."

Other discussions between the two sides include cooperation in the financial and service industries, encouraging two-way investment and promote regular economic exchanges across the Taiwan Strait.

Wu said today he hope that more efforts can be made to promote more mainland tourists to visit Taiwan. Taiwan opened its tourism market for mainland travelers in July.

The Shanghai forum is the fourth annual summit since Hu Jintao, general secretary of the Central Committee of the Communist Party of China, in 2005 met then Kuomintang Chairman Lien Chan, a historical meeting in the cross-strait relation. The exchange across the Strait became more active since then.

The Chinese mainland and Taiwan started direct air, sea transport and postal services on Monday, the latest step to further improve the once strained ties. Before the move, air and sea transport as well as mail between the mainland and Taiwan had to go through a third place.