Vincent Siew says Shanghai, Taiwan have great chance for cooperation

Former KMT premier Vincent Siew (蕭萬長) called for greater cross-strait economic cooperation at a meeting with Shanghai's top Communist Party official Huang Ju (黃菊) yesterday.

While political differences still divide both sides, Siew and Huang agreed that economically at least, the two sides have much in common.

"Shanghai is becoming a trading center, port, financial and information hub for China. These industries are all already in Taiwan.

"I think in the future there will be lots of opportunities for cooperation between the two," Siew said.

Huang yesterday gave Siew a warm welcome to the country's financial center, a major target of Taiwan investment.

"We thank our Taiwan friends who are working to improve cross-strait relations for our mutual benefit," Huang told Siew.

"We hope both sides can continue to work together," he said. Such warm welcomes have eluded Taiwan's ruling government.

Political ties between China and the ruling DPP are in a stalemate, with Beijing shunning official contact with President Chen Shui-bian's (陳水扁) government.

Despite the political tension, Taiwan businesses have poured investment into China, including plans to build two big semiconductor foundries in Shanghai in the past year.

Taiwan businesses have invested about US$50 billion in China since rapprochement began in the late 1980s, some analysts say.

Others said the figure is much higher -- Credit Lyonnais Securities Asia puts it at around US$100 billion.

Beijing has rejected all official contact with Chen's government, insisting that Taipei first recognize the "one China" principle. China has instead been hosting visitors from the opposition.

In a fresh snub against Chen on Friday, Chinese Vice Premier Qian Qichen (錢其琛) met Siew for what the former premier called "comprehensive talks."

Siew has been touting his ideas for a regional common market on an eight day China visit.

In Taiwan, Chen insists that democracy and political equality would have to come in step with closer economic ties.

Siew has repeatedly emphasized that he has no political agenda for this visit.

He told Huang that he expects business relations across the Taiwan Straits to become more intimate, and that there will be more contact between the two sides.

"I am personally optimistic about the future, though we must together take one step at a time," Siew said.