Gov't Will Step Up Cross-Strait Economic Policies

Taipei, Jan. 17, 2012 (CENS)--With President Ma Ying-jeou winning the election for his second term, major cross-Taiwan Strait economic policies will be implemented at an accelerated pace, according to a report made by Shih Yen-shiang, economics minister, at the Presidential Office yesterday (Jan. 16).

Shih reported that follow-up talk for cross-Taiwan Strait Economic Cooperation Framework Agreement (ECFA) will be held soon; the cross-Strait investment protection agreement will be signed in the first half this year; the third meeting of cross-Strait economic cooperative committees will take place in the first half; and Chinese investments in Taiwan will be further liberalized.

A ranking government official pointed out that cross-Strait policy is a key to the success for President Ma in the presidential election, as evidenced by the open support of many entrepreneurs to the “1992 Consensus” at the last moment of the election.

Taiwan and mainland China will start trade talk related to ECFA after the Chinese Lunar New Year holiday in February. A major item on Taiwan's agenda will be the reduction of tariff on export of Taiwan's FPD (flat panel display) to China.

Taiwan and China have agreed to the mutual establishment of representative's offices in the first quarter this year. Taiwan External Trade Development Council (TAITRA) or Taiwan Electrical and Electronic Manufacturers' Association may be the first Taiwanese institution to set up representative's office in China.

The Ministry of Economic Affairs will carry out third-stage liberalization for Chinese investments in Taiwan. Among others, the MOEA is studying the feasibility of allowing Chinese investors to buy into domestic LED (light emitting diode) firms.

The Cabinet-level Public Construction Commission is considering allowing Chinese investments in infrastructural projects, such as mass rapid transit system, high-rail system, and stations, via BOT (build-operate-transfer) method.