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Seminar Backs Cross-Straits Finance Cooperation
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Senior officials and experts from both sides of the Taiwan Straits vowed to speed up the process of widening financial cooperation between the two sides when they addressed a seminar at the Fourth International Investment and Trade Symposium held in Ningbo in East China's Zhejiang Province at the weekend.

Experts said that, although there had been a steady improvement between the two sides in the expansion of mutual economic exchange in the past decade or so, the mainland and Taiwan are still developing comparatively slowly in the financial sector, which has in many ways blocked economic growth.

Jiang Tianxi -- deputy chief executive of the First Sino Bank, which became the first joint mainland-Taiwan bank when it was established in Shanghai in 1997 -- said: "Time never waits. Now, with China's entry to the World Trade Organization, with its further opening of markets in the far western regions of its interior, and with all kinds of great changes taking place in the international arena, prompt action should be taken soon to develop a healthy system of cross-Straits free capital flow and the cooperation between the mainland's and Taiwan's financial industry."

More than 50,000 Taiwan firms now operate on the mainland, with an actual investment amount of about US$30 billion. However, many businesses face financing problems, especially small and medium-sized businesses.

Qi Xue, president of the Taiwan Academy of Banking and Financing, said: "In order to change the current situation of no direct financial business exchange across the Straits, the Taiwan authorities are substantially opening a new door for direct financial contact with the Chinese mainland."

Previously, only offshore banking units of Taiwan banks were allowed to engage in cross-Straits business. Now, under a series of new policies initiated by the Taiwan authorities during the past year, banks on the mainland and their overseas branches and mainland-based companies are all able to do financial transactions with Taiwan offshore banking units.

(China Daily June 10, 2002)

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