MAC head warns of China's intentions

Beijing may seek to increase its political influence and establish a role for itself as a mouthpiece for the Third World following its entry into the WTO, a ranking Taiwan government official said yesterday.

Tsai Ing-wen (蔡英文), chairwoman of the Mainland Affairs Council, also said the recent interaction between Beijing and the Association of Southeast Asian Nations was worth close attention, following a Beijing proposal to set up the world's largest free-trade zone in conjunction with the regional grouping.

Tsai, who heads the Cabinet-level body that sets out Taiwan's policy on China, made the remarks while delivering a report to the task force on cross-strait relations -- a presidential advisory body led by Academia Sinica President Lee Yuan-tseh (李遠哲).

The entry of Taiwan and China into the WTO, Tsai said, will create a "win-win" situation for the two sides of the Taiwan Strait and expand the multilateral interests of both, helping create stability and peace across the strait. She said that Beijing's attitude will, to some extent, affect bilateral exchanges.

According to Tsai, ensuring domestic long-term development and stability will be Beijing's main task after its WTO admission. Beijing will view its entry into the world trade regulatory body as a second chance to conduct economic reforms and will use international influence to achieve the task, she said.

She pointed out that China also risks great danger transforming from a state-controlled to a free-market economy.

In addition, she said, WTO entry will also have a serious impact on mainland China's vast rural population.

At the same time, Taiwan must be swift to avoid increased business relocations that could lead to the country becoming an outcast on the economic front, Tsai said.