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SCMP Reporter

Despite their accession to the World Trade Organisation, wrangling between Taiwan and the mainland was not going to abate, analysts said.

'Though some subtle changes on the economic front will happen, cross-strait political relations will remain the same,' said Hong Kong-based political affairs commentator Johnny Lau Yui-siu.

His views were echoed by Taiwan-based political science academic Wu Chih-chung, the deputy director of programmes for the island's top analysis unit, the Institute of National Policy Research.

'Struggles between both sides of the Taiwan Strait will continue, but I hope this competition will develop towards a positive direction,' Dr Wu said.

Taiwanese officials hoped the accession would help restart co-operation between the two sides.

According to Dr Wu, Taiwan hopes future talks between the two sides will be held within the framework of the WTO, which is seen as a relatively 'safe' environment as it is in the international spotlight.

China hopes increased trade will pave the way for national reunification.

Vice-chairman of the Beijing-based All China Federation of Taiwan Compatriots, Zeng Zhonglang, said increased economic ties between the mainland and Taiwan would serve as a catalyst for rapprochement.

Analysts in China have said that by engaging the island's business sector, Beijing could indirectly put pressure on Taipei to soften its stance and accept the 'one China' principle.

They were confident more Taiwanese eventually would accept unification as China's economy grew stronger and cross-strait business became more intertwined.

Last year more than 40,000 Taiwanese companies invested almost US$30 billion (HK$234 billion) in China, and the scale of investment was expected to rise further when trade barriers between the two sides eased as they both became members of the WTO.

However, economists in Taiwan say the time it takes for the island to recover from its current economic slump will be a significant factor in the latest struggle between the mainland and the island.

Hit by a global slowdown, Taiwan witnessed a sharp economic downturn this year, with soaring unemployment rates.



Entry unlikely to thaw perennially frosty cross-strait relations