Lien in push for closer trade links
But he admits a common market could be decades away
Beijing will soon move to open its economy to some of Taiwan's agricultural goods and move forward on cultural exchanges, Kuomintang leader Lien Chan confirmed yesterday as he wrapped up his eight-day mainland visit in Shanghai.
In a speech to Taiwanese business executives, he also criticised Taipei for maintaining obstacles to trade with the mainland. But he urged Beijing to cease obstructing Taipei's negotiation of free-trade agreements with other countries.
'Cross-strait economic co-operation still has several barriers. This can't be denied,' he told a local Taiwanese business group, citing Taipei's ban on direct trade and transport links with the mainland.
Taiwanese companies face the risk of losing out to foreign firms, which have rushed to the mainland to take advantage of cheaper costs and tap the massive potential consumer and trade markets.
'Under this kind of environment, if we keep this attitude to prevent and stop [investment] we might suffer a negative impact,' Mr Lien said.
He described Taiwan as being at a critical juncture, mulling over which direction to take in cross-strait relations.
'Most of the major countries in the world have aimed their focus at the mainland, and are venturing into the mainland [markets] ... If we still harbour a closed-door mentality, we will suffer from many negative backlashes,' Mr Lien said.
Although Taiwanese companies had already pumped billions of dollars into the mainland, there was still room to develop in other areas such as financial services, management and the technology sector, he said.
Following a meeting with President Hu Jintao last week, Mr Lien said he had secured the backing for a 'common market' with the mainland. But he added it could take decades to create.
The ultimate goal was to achieve the free flow of personnel, capital and goods, he said. In the more immediate future, he expressed hopes the mainland could allow Taiwan to participate in talks for free-trade agreements.
'We hope the mainland will be happy to see the result, and give us encouragement [to participate in free-trade talks],' Mr Lien said.
The mainland considers Taiwan part of its sovereign territory, so Beijing routinely blocks moves which it interprets as steps towards pushing for international recognition.
A Taiwanese business executive said he hoped the trip by the Kuomintang leader could put pressure on President Chen Shui-bian to relax some of the restrictions to doing business on the mainland.
'On the Taiwanese side, having Lien Chan and the KMT come here puts pressure on the other parties. The strategy is very positive for China in a sense,' said David Kiang, chief executive and president of First Sino Bank, a locally registered bank with investment from Taiwan.
