The world should not demonize or smear the development of the Chinese mainland, nor regard it as a threat, Chinese Kuomintang Honorary Chairman Lien Chan said in Beijiing Friday.

The Chinese mainland provides market for countries like the United States and Japan, promotes their production efficiency, increases their people's purchasing capacity, relieves their deficit or economic stress and helps channel their investment into industries with high added-value, Lien said.

Lien made these remarks at the opening of the two-day Cross-Straits Economic and Trade Forum in Beijing.

The booming trade between the Chinese mainland and Taiwan plays a key role in Taiwan's economic growth over the past six year, Lien.

The resources of Chinese mainland are vital for the future development of Taiwan's economy.

The economic and trade relationship between the Chinese mainland and Taiwan is "very, very close," and it has been proved by the latest statistics from the World Trade Organization, which showed the investment from Taiwan in the mainland reached 58 billion U.S. dollars last year, said Lien.

Taiwan aims to become an island of science and technology as well as a business hub of storage, logistics, finance and marketing of the world. These could not be realized without the resources of the mainland, said Lien.

Lien said the opening of the Chinese mainland market has helped Taiwan maintain an annul economic growth of 3.57 percent in the past six years despite dwindling domestic demand and declining consumption.

The Chinese mainland and Taiwan should push forward their cooperation in agriculture, finance, energy, charter flight, education and medical service, Lien Chan said.

The mainland and Taiwan can enhance energy cooperation so as to raise energy efficiency and safeguard energy security, he said.

However, he said, after the Democratic Progressive Party (DPP) took power in Taiwan, its political policy has severely conflicted with Taiwan's economic development demand, he said.

This makes Taiwan lose the momentum of further economic growth, Lien said.

In his speech titled "Peace and Prosperity -- Common Aspiration," Lien called for peace and common development across the Taiwan Straits. He reiterated his stance on the cross-Straits relations and hoped that proposals put forward at the two-day forum could boost the development of the cross-Straits ties in the future.

(Xinhua News Agency April 14, 2006)