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Beijing holds firm on `one China' policy

Taiwanese Minister of Finance Yen Ching-chang, left, talks with Chinese Finance Minister Xiang Huaicheng, at a bilateral meeting in China's eastern city of Suzhou yesterday. The meeting took place against the backdrop of a four-day APEC finance ministers' meetings. PHOTO: AFP

Chinese Finance Minister Xiang Huaicheng (項懷誠) said yesterday that Taiwan could open banks in China and establish direct links, but only if Taipei first recognized Beijing's long-standing "one China" policy.

Xiang, emerging from a bilateral meeting on the sidelines of a meeting of Asia-Pacific finance ministers, was peppered with questions from reporters on cross-Strait trade.

Xiang replied: "You said, `Can Taiwan banks set up branches in China?' I say yes. You said, `Three links?' I say yes."

Asked under what circumstances, he raised a single finger and said: "One China."

Xiang had earlier met Taiwan Finance Minister Yen Ching-Cheng (顏慶章) in what both described as "friendly talks," but they did not touch upon Taiwan's calls for dropping a decades-old ban on direct trade links at its recent Economic Development Advisory Conference.

The meeting -- marking the highest level talks between the two political rivals since Taipei last month called for lifting the ban on direct links -- focused instead on Asia's slumping economies and preparations for a weekend meeting of Asia-Pacific finance ministers in the Chinese city of Suzhou.

"The Chinese communists are scheming against us more severely by the day. [China has pursued a policy of] hollowing out our economy ... "

Lin Chong-pin, vice chairman of the Mainland Affairs Council

"We had very good talks," China's Xiang Huaicheng told reporters after the meeting. "We have many views in common."

Yen said the meeting also did not address Credit Suisse First Boston, which China dropped from a lucrative underwriting deal after the US investment bank helped organize road shows for Taiwan officials, including Yen.

"We spoke within the scope of the APEC finance ministers' meeting," Yen told reporters.

A key Taiwan advisory panel recommended on Aug. 26 that Taipei hold talks with Beijing on opening the "three links" -- direct trade, transport and postal ties -- within the framework of the WTO.

In Taipei, the government -- in its harshest criticism of China in recent months -- accused Beijing of trying to "hollow out" the Taiwanese economy and of attempting to suffocate the nation on the world stage.

The angry words follow reports that China penalized investment bank Credit Suisse First Boston for inviting Taiwan's finance minister to conferences in Hong Kong and Europe. The meetings were designed to help Taiwan attract foreign investment.

Beijing's move has Taiwanese worried that China has added Taiwan's business ties to its list of targets in a campaign to isolate Taiwan from the rest of the world.

Yesterday in Taipei one of Taiwan's top officials responsible for China policy criticized Beijing's actions against Credit Suisse.

"The Chinese communists are scheming against us more severely by the day," said Lin Chong-pin (林中斌), vice chairman of the Mainland Affairs Council.

On the surface, Lin said, China has taken a soft approach by inviting Taiwanese opposition politicians and others to visit China.

But in fact, he said, China has pursued a policy of "suffocating us on the diplomatic front, suppressing us on the political front, hollowing out our economy, waging a battle for reunification socially and intimidating us militarily."
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