Taiwan asked to open further to Chinese investors

China has asked Taiwan to open its $390 billion economy wider to investment from the global economic powerhouse.

Taiwan asked to open further to Chinese investors

China has asked Taiwan to open its $390 billion economy wider to investment from the global economic powerhouse after signature of a landmark trade pact and a warming of political relations, the island nation's news agency said.

Beijing asked Taiwan in writing to open further to Chinese investors and has expressed interest in sectors that Taiwan plans to develop over the next decade to diversify its tech-led economy, the Central News Agency reported late on Sunday.

The request follows an economic cooperation framework agreement (ECFA) that slashes tariffs on about 800 items. The pact heavily favours Taiwan as China hopes it will charm the island's public and advance its goal of political unification.

Chinese investment would quickly lift six Taiwan industries identified by the government for fast development. They cover biotech, green energy, tourism, health care, high-end agriculture and creative arts and are expected to see a combined output of T$3.37 trillion ($100 billion) by 2012.

"It sounds as if this is a welcome move," said HSBC regional economist Frederic Neumann. "It means ECFA wasn't a one-off, that China has continued interest in strengthened relations with Taiwan. Taiwan needs to look to other sectors and cannot just look to electronics for development."

China, which sees the self-ruled island as part of its territory, and Taiwan opened trade talks in 2008 after six decades of hostilities. Taiwan now allows limited Chinese investment in manufacturing, infrastructure, services and the local stock market.

China is expected to push its request for more investment at a World Trade Organisation trade policy review meeting in Geneva between Monday and Wednesday, the semi-official agency. Taiwan officials declined to comment.

"The Vice Minister of Economic Affairs, Lin Sheng-chung, confirmed before leaving for Geneva...that China has actually made the request in a written statement," the news agency said.

Reuters

Güncelleme Tarihi: 05 Temmuz 2010, 11:29

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