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Pact to boost cross-Straits service trade

Updated: 2013-06-22 03:07
By SHI JING in Shanghai ( China Daily)

Pact to boost cross-Straits service trade

Chen Deming (right), president of the mainland-based Association for Relations Across the Taiwan Straits, meets his Taiwan counterpart Lin Join-sane, chairman of the Straits Exchange Foundation, during a meeting on Friday in Shanghai. Companies from the mainland and Taiwan will have greater access to each other's service sectors after the signing of a new draft trade agreement. PHOTO BY REN LONG / XINHUA

Companies from the Chinese mainland and Taiwan will have greater access to each other's service sectors as commercial ties strengthen across the Taiwan Straits, after the signing of a new draft trade agreement on Friday.

Under the agreement — signed by Chen Deming, president of the mainland-based Association for Relations Across the Taiwan Straits and his Taiwan counterpart Lin Join-sane, chairman of the Taiwan-based Straits Exchange Foundation — the mainland will open 80 service sectors to Taiwan, and Taiwan will open 64 sectors to the mainland.

The sectors most likely to benefit from the new agreement include commerce, telecommunications, construction, the environment, health, tourism, entertainment, culture, sports, transportation and finance.

The draft allows companies from Taiwan to take controlling stakes in joint ventures in the mainland, streamline approvals and expand geographic operations in sectors including banking, hospitals, construction and tourism.

Chen said the mainland fully considered Taiwan's market size and the practical needs of the people of Taiwan when formulating its list of services that will be opened to Taiwan.

Lin said the new trade agreement will optimize the investment and trade environment of both sides, facilitating further economic integration.

Jerry Tsai, chairman of the Taiwan-based MobileTron Electronics Co Ltd said he noticed various conditions in the agreement which can provide more room for understanding on both sides, although he was yet to fully identified how it will specifically benefit his own mobile electronics industry.

"Companies from Taiwan should make sure they study the agreement and how trade in their industries might be better served," he said.

Chyi Luu, general manager of a hotpot restaurant in Shanghai, who is from Taiwan, said the signing of the agreement offered the Taiwan people living in the mainland a "better level of care and more convenience".

He added: "Of course, it is a reciprocal agreement, and is good for the economic development of both sides."

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