Members from both the Taiwan and mainland petrochemical industries are urging the Taiwan authorities to further reduce restrictions on investment in the mainland. They made the call at an ongoing cross-strait conference in Beijing on Thursday.
It could be described as one of the most impressive gatherings in the history of cross-strait economic cooperation.
Senior managers of major petrochemical industrial enterprises from Taiwan are attending the three-day meeting, and they will talk with their mainland counterparts to find ways to expand their market share in the mainland.
The Chairman of the Association of Petrochemical Industry in China gave them a warm welcome. He said the aim of the meeting is to further promote exchanges in the industry, and to seek mutual benefits across the Taiwan Strait.
But like most of the cross-strait civilian activities held before, this event has also been overshadowed by ongoing political problems between the two sides. Despite the fact that the Taiwan authorities have gradually reduced restrictions on investment in the mainland over the past years, many Taiwan businesspeople still believe it's far from enough.
Li Zhicun, General Manager, Formosa Plastics Corporation, Taiwan, said, "The Taiwan authorities have imposed many restrictions on investment in the mainland. We hope they will negotiate with the mainland to remove this policy, so that our enterprises can develop better here."
Li Zhecun's company is one of the leading petrochemical enterprises in the island, but due to harsh restrictions, it has yet to open material business in the mainland. Many other companies face similar limitations.
But on the other side, the mainland has not placed any restrictions on Taiwan businesses looking to invest in the mainland. This has encouraged them to increase their business presence here. For decades, the central government has sought to realize the goal of peaceful reunification.
Wang Xiaochuan, Deputy Director, Dept. Of Taiwan Affairs, Ministry of Commerce, said, "Considering the current development trend of economic cooperation between the two sides of the Taiwan strait, a more convenient and liberal policy is required. But it's a great pity to see that direct links across the Taiwan Strait are yet to be realized. This will become a big hurdle for future development."
Taiwan's petrochemical market has seen a sharp downturn in recent years, while the mainland's rapid economic growth has made it the ideal target market for the petrochemical sector on the island.
For these Taiwan businesspeople, investment in the mainland could mean the difference between life and death for their enterprises. While for the mainland, the political significance resulting from these exchanges may be even greater than the real economic benefit.
It's been some ten years since the Taiwan petrochemical industry began lobbying the Taiwan authorities to lift restrictions on investment in the mainland. But without the involvement of the Taiwan authorities, these talks may yet again turn out to be empty words, with no significant changes to show for them.
(CCTV.com September 5, 2003)
