Businesses repeat case for cross-strait investment

Local business leaders yesterday renewed their appeal to the government to relax regulations on business investment and tourism between Taiwan and China as soon as possible to attract capital and boost the nation's competitiveness.

They directed their suggestions and concerns at Premier Frank Hsieh (謝長廷), who was invited to speak on the government's financial policies during a gathering of the Taipei-based business group Third Wednesday Club (三三會).

Kao Yu-jen (高育仁), chairman of the laptop retailer Twinhead International Corp (倫飛電腦), said that Taiwanese residents account for 3 million to 4 million visits to China every year, and more than 1 million Taiwanese are working across the Taiwan Strait.

Meanwhile, Taiwan has placed several restrictions on the inflow of both Chinese tourists and business investment projects into the country.

Kao urged the government to open up the domestic market and, in particular, implement direct links with China, saying that this policy would have hundreds of advantages but cause no harm at all.

Current regulations allow only two categories of Chinese citizens to visit Taiwan -- those who do not live in China, and those who live in China but plan to come to Taiwan for business or who are en route to other countries.

The Mainland Affairs Council last month agreed to relax the restrictions and allow 365,000 Chinese tourists per year, or 1,000 people per day, to visit Taiwan as their main destination for a maximum of 10 days. This opening-up measure is pending negotiations between representatives from the two sides.

"I have confidence in Taiwan, and I'm not afraid of more people coming here. I think the door can be opened wider, but of course the controversial issue of national security should be taken into consideration," Hsieh said.

On the sensitive issue of direct links, Hsieh said that there is currently no consensus among the general population, although the business community has adopted a supportive attitude.

"A negotiation mechanism must be established before we can touch upon issues like operating direct passenger flights and cargo charter flights across the Strait," he said.

Hsieh said that the authority to decide such matters lies with President Chen Shui-bian (陳水扁), but that he would convey the business groups' opinions to the president.

Chu Ping-yu (朱炳昱), chairman of Taiwan Life Insurance Co (台灣人壽), also suggested that inheritance and gift taxes be slashed to promote investment.

"China's tax rate [on inheritance and gifts] is zero, Hong Kong levies a rate of 12 percent, and the US is now adopting a decreasing tax rate with the goal to drop it to zero in 2010. If we don't follow suit, how are we going to lure back well-heeled people's capital?" Chu asked.