CNFI group meets Jiang in Beijing

Meeting with Chinese President Jiang Zemin (江澤民) in Beijing yesterday, members of the Chinese National Federation of Industries (CNFI, 全國工業總會) were urged to do more to improve bilateral ties through economic exchange, reports said.

The high-powered business delegation was the first to visit China since Chen Shui-bian (陳水扁) was elected president in March.

Commenting on the cross-strait climate, Jiang said conflict with Taiwan should be avoided and that the two sides should strive for greater dialogue and economic cooperation, according to the leader of the Taiwanese group.

"People on both sides of the Taiwan Strait should follow the global trend and join hands to develop economic cooperation and exchange," Jiang was quoted as saying.

The members of CNFI -- one of Taiwan's top three chambers of commerce -- are currently on an eight-day business tour of China that began on Sunday. The delegation postponed its visit -- originally set for March -- following Beijing opposition to Chen's election, whose DPP party espouses independence from China.

Tensions have recently eased somewhat after Chen repeatedly made goodwill gestures toward Beijing.

China has wooed the island to reunify, but threatened to invade if Taiwan declares independence.

Yesterday, Jiang repeated Beijing's demand that Taiwan recognize the "one China" principle -- that there is but one China, of which Taiwan is an inseparable part -- before the reunification process can proceed. He also said China's policy of developing its impoverished western regions presented Taiwan businesses with great opportunities.

"Our association has not visited the mainland for two or three years, therefore it's necessary for us to meet mainland leaders, asking them to take care of Taiwan businessmen here," CNFI chairman Lin Kun-chung (林坤鐘) was quoted as saying.

More than 50,000 Taiwan companies have moved production to China where cheap labor and land are abundant, according to Lin. The majority of Taiwan's trade and investment in China currently passes through Hong Kong. Even with these restrictions, Taiwan has poured more than US$40 billion into China since tensions began to ease in the late 1980s.

But Chen has opposed lifting the decades-old ban on direct trade transport and postal links until the two sides resume talks that were frozen by Beijing last July, after Taiwan demanded political equality.

At the meeting with Jiang, Lin singled out two issues of contention for discussion: the barriers encountered by Taiwanese businessmen operating in China and how Taiwanese businessmen could maintain their competitiveness after both sides enter the WTO. Lin noted that after both sides of the Strait join the WTO, they will face steep competition. If there are no direct links, Taiwan businesses will run into difficulties that will be detrimental to cross-strait relations.

In related news, a Hong Kong-based Internet news service reported yesterday Beijing may use economic sanctions to force Taiwan into reunification.

According to the Hong Kong iMail, China had already begun drafting plans ranging from partial sanctions to a full-blown embargo of the island.

The report gave no timeline for the new measures to be enacted.