The state council has endorsed plans to develop an economic zone on the mainland side of the Taiwan Strait, marking yet further improvement in financial ties with the island.
The zone would be centred around southeastern Fujian province, aimed at spurring development in regions neighbouring Xiamen .
Setting up a special economic zone in the area has been suggested several times by local officials in an attempt to match the pace of development in the prosperous Pearl River and Yangtze River deltas, but has failed to gain central government backing until now.
The council gave its support to the plan at a meeting chaired by Premier Wen Jiabao , an official statement released last night said. 'Given the great positive changes in cross-strait relations recently, more powerful strategies should be taken to develop further Fujian province's comparative advantage,' the statement said, noting that the region would be able to capitalise on blood links, cultural ties and business relationships across the strait.
The statement said the new zone would extend to meet the Yangtze delta in the north and the Pearl delta to the south - effectively creating a superzone running from Guangdong province to Jiangsu province .
The new economic zone would principally be an experimental zone for promoting cross-strait exchanges and co-operation, and would require 'major reforms'.
