Evergreen to circumvent cross-strait restrictions

Taiwan shipping giant Evergreen Marine Corp (長榮海運) plans to register more than half of its ships in Europe as a way of entering the China market, a report said here yesterday.

"In the future, more than half of Evergreen's vessels will be registered in Europe, which would facilitate our company's penetration in European and Chinese markets," a local Chinese-language newspaper quoted Chang Jung-fa (張榮發), chairman of the Evergreen Group, as saying.

China bans Taiwanese shipping firms from operating subsidiaries or agencies in China.

To circumvent the restriction, Evergreen will shift its focus to Europe and change the registration of half of its fleet to Britain and Italy, Chang said.

"Italy said it will treat Evergreen ships as Italian ships, and ask China to treat Evergreen's investment in China the same as Italian firms' investment," he said.

Chang plans to registered some 40 vessels in the UK and 40 others will fly the Italian flag in the next two to three years. Evergreen has subsidiaries in both countries.

Another local Chinese-language economic daily said it was likely that Evergreen has already been given permission by Chinese authorities to enter the Chinese shipping market through European subsidiaries.

The decision has drawn sharp criticism from Taipei. Minister of Economic Affairs Christine Tzung (宗才怡) said enterprises can make their own choices, but "one should not place personal interests before those of the nation."

She, however, also told local reporters that the government shouldn't interfere with the actions of businesses.

Chang also criticized Taiwan's ban on direct trade with China.

"In the past, China relied on Taiwan, now Taiwan relies on China. Taiwan's economic problems cannot be solved unless the political problem between Taiwan and China is solved," he said.

Evergreen has already invested in Chinese shipping terminals.