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Manufacturers, Exporters, Wholesalers - Global trade starts here.

Taiwan to Ease Restrictions
Taiwan on Sunday took a major step forwards in boosting links with the mainland, approving a major easing on investment rules and new direct postal and shipping links.

The reforms, devised by an economic panel whose decisions the local Taiwan authorities has guaranteed to implement, come ahead of the likely accession of the two to the World Trade Organization (WTO) later this year.

The current "go slow, be patient" investment policy will be replaced by a scheme called "active opening, effective management", under which limits on mainland-bound business will be reviewed.

The existing policy banned single investments worth more than US$50 million and any at all in the infrastructure and advanced technology sectors.

A special group composed of politicians, scholars and business representatives will be set up to screen Taiwan's major mainland-bound investment applications.

"The US$50 million ceiling is no longer applicable," Tsai Ing-wen, chairwoman of the Mainland Affairs Council, told reporters.

She was speaking after the proposal was formally endorsed at the end of a three-day full session of the island's economic development advisory council.

"Taiwan's President" Chen Shui-bian guaranteed to introduce all the results worked out by officials, economic gurus and experts during the ad hoc economic forum, which was convened to come to the rescue of the island's ailing economy.

"The conclusion arrived at the meetings was not only my consensus but also the public's consensus," Chen said.

Koo Chen-fu, Taiwan's top negotiator in dealings with the mainland said the lifting of the limits had "great significance" in that "beginning from economic integration, the two sides can increase exchanges from the other fronts".

The go-slow policy on investment has been in place since 1996.

However with or without approval from the Taiwan authorities, Taiwanese companies have poured about US$70 billion into the mainland since authorities first allowed civil exchanges between the two sides in 1987.

The council also decided reforms were needed in the half-century ban on direct trade and post links should be removed.

Currently the mainland opens the two ports to Taiwan while Taiwan's southern port of Kaohsiung is authorized to serve as an offshore trans-shipment center in the absence of direct shipping links with the mainland.

Taiwan lOcal media have said talks on the direct shipping links will be held next month in the southeastern city of Shenzhen.

In addition, banks in Taiwan will also gradually be permitted to open branches or subsidiaries on the mainland and the ban on Taiwanese visits by mainland tourists will also be eased.

(China Daily 08/27/2001)


Taiwan Likely to Ease Investment Hurdles
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Taiwan Merchants Seek Business Chances in Mainland
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Tourists From China's Mainland Acceptable to China's Taiwan
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