Taiwan forum reaches no accord on China trade ties
The two-day Conference on Sustaining Taiwan's Economic Development was designed to allow academics, businessmen and officials to thrash out suggestions on medium and long-term goals for the economy.
The forum failed to reach a consensus on axing a cap a ceiling on Chinese investments, allowing direct flights to China and expanding the scope of banking investments on the mainland.
However, these suggestions were mentioned in the appendix to its proposals, participants said. "Putting these issues under 'other suggestions' means that there is room for discussions in the cabinet," said Song-ken Hsu, economics professor at Tamkang University in Taipei. "However, I'm not optimistic that these plans will follow through."
The proposals, which will be reported to the cabinet for review, disappointed Taiwan businesses men, who want to ease ties with China, especially after they have invested as much as $100 billion in the mainland.
"If the government doesn't give approval to, say, full direct transportation links, then it'll be difficult for them to achieve their aim of making Taiwan a regional logistics hub," said Luo Huai-jia, vice president of the Taiwan Electrical and Electronic Manufacturers' Association.
The proposals from the conference included suggestions to allow Chinese tourists to visit Taiwan, participants said.
However, businessmen had hoped the removal of a cap on investments in China, now set at 40 percent of Taiwan firms' net value, and letting banks set up branches in China would be given the backing of the conference.
China sees Taiwan as a wayward province that needs to be unified with the mainland by force if necessary. Despite political differences, China is the island's largest trading partner and favorite investment destination.
President Chen Shui-bian, whom China regards with suspicion as he leans towards Taiwanese independence, urged businesses on Thursday to invest beyond China to avoid over-reliance on the massive Chinese market.