The first and largest yet non-governmental cross-Straits forum—the Straits Forum held on May 15-16—came as a welcome respite for Taiwan businesspeople struggling in the midst of financial chaos.

At the forum, Wang Yi, Director of the State Council Taiwan Affairs Office, said that the mainland had adopted eight favorable measures for Taiwan businesses, as part of the mainland's efforts to promote cross-Straits relations.

The Chinese mainland encourages local companies to invest in Taiwan, with an economic cooperation framework soon to be adopted. Mainland officials will organize purchase delegations to Taiwan to fuel the island's economy. The favorable measures also include increasing the number of mainland tourists to Taiwan to 600,000 this year.

Taiwan leader Ma Ying-jeou welcomed the mainland's new policy of encouraging enterprises to invest in the island, saying Taiwan is happy to see any policy that benefits cross-Straits economic and trade development, Xinhua News Agency reported.

He said Taiwan lost eight years in the development of cross-Straits relations during former leader Chen Shui-bian's administration, and that is why he has put relations back on the right track in his first year in office. Cross-Straits exchanges should not move backward, and Taiwan will decline and fall into recession if it resumes self-isolation policies, he said.

Experts believed the eight favorable measures would greatly boost Taiwan's economic development at a time of global economic downturn. Tang Yonghong, professor of cross-Straits relations at Xiamen University, noted that Taiwan companies would be able to benefit from the mainland's 4-trillion-yuan ($586 billion) stimulus package, as the favorable measures allow Taiwan companies to participate in infrastructure construction included in the stimulus package.

The tourism industry in Taiwan will also get a boon from the measures. Huang Fucai, professor at Xiamen University, estimated that 600,000 mainland tourists a year could generate $1.5 billion in revenue for Taiwan. "That does not include the 30,000 direct employment opportunities in the tourism industry or the 70,000 indirect jobs in the aviation, transportation and catering industries," Huang told Xinhua.

Mainland's Eight Favorable Economic Measures for Taiwan

1. Encouraging mainland companies to invest in Taiwan. The Ministry of Commerce and the Taiwan Office of the State Council issued a circular on May 18 guiding mainland investment procedures in Taiwan. Relevant mainland government departments will lead delegations to Taiwan to study investment opportunities in various fields, including electronics, communications, biotech and medicine, shipping, public construction, commerce and logistics, textiles, machinery and auto manufacturing. The delegations will examine the comparative strengths of the two places and explore possibilities for cooperation. Mainland companies and financial institutions are encouraged to cooperate with their Taiwan counterparts to hold training courses, trade fairs and expos.

2. Expanding the purchase of Taiwan products. Mainland officials will send two agricultural purchase delegations to Taiwan, one in the first half of this year and the other in the second half, to buy local fruit, vegetables, seafood and processed agricultural products. Mainland companies will also form three purchase delegations to Taiwan in May, June and July to buy industrial goods, daily necessities, processed food products and artistic works. Mainland officials will also support Taiwan companies in holding promotional activities on the mainland.

3. Encouraging and supporting qualified Taiwan companies to expand their mainland market and participate in mainland infrastructure construction as outlined in the 4-trillion-yuan ($586 billion) stimulus package and other major construction projects. Taiwan offices at all levels on the mainland will provide due support to Taiwan companies.

4. Increasing the number of mainland tourists to Taiwan in a sound and orderly way to more than 600,000 this year.

5. Promoting the establishment of a cross-Straits economic cooperation mechanism. The mainland is committed to working with Taiwan to set up an economic cooperation framework agreement that caters to cross-Straits economic development needs.

6. Allowing more Taiwanese people to take part in mainland examinations for licenses as technicians, including accountants, auditors, price appraisers, social workers, international traders, land-registration agents, corporate legal consultants, environmental impact evaluating engineers, structural engineers and civil engineers.

7. Strengthening the construction of cross-Straits agricultural cooperation platforms. Four new plantation areas for Taiwanese farmers in Fujian, Anhui and Jiangsu provinces will be added to the original 11.

8. Allowing Taiwan law firms to set up branches in two cities (Fuzhou and Xiamen) on a trial basis to engage in Taiwan-related legal consulting services.

(Source: Xinhua News Agency)