Officials at China's People's Bank of China told a visiting high-tech delegation that Taiwanese banks should speed up plans to establish branch offices in China before both countries enter WTO, and special investment incentives extended to local banks may draw opposition from foreign banks.
Richard Wu (吳思鍾), chairman of by Taiwan's Electrical and Electronic Manufactures' Association (TEEMA, 台灣區電機電子工業同業公會) quoted assistant to China's People's Bank governor Lee Ruo-ku (李若谷) as saying. The TEEMA delegation, Taiwan's largest high-tech industry association, has been told earlier by China State Council's Taiwan Affair's Office Director Chen Yunlin (陳雲林) that China might consider allowing Taiwan banks to set up branches in China with special incentives.
Lee also said that a direct communication mechanism should be created between the top financial supervisory institutions of Taiwan and China to help solve problems after the Taiwanese representative offices or branches are established in China.
Meanwhile, Taiwanese officials may allow Chinese banks to open representative offices here following its recent decision permitting local banks to open offices in the mainland, a local Chinese-language daily said yesterday.
Taipei was considering opening its doors to Chinese banks in an effort to create a level playing field for the two sides ahead of their entry to the WTO, the paper quoted Vice Finance Minister Yen Ching-chang (
The remarks followed the announcement earlier this week by Taiwan's Mainland Affairs Council (MAC), which formulates the island's policy towards the mainland, that initial agreement had been reached to allow local banks to set up representative offices on the mainland.
According to MAC, the decision would be carried out in stages, without giving details.
Representative offices in the mainland would be able to gather information but would not allowed to offer bank services.
The liberalization was welcomed by Chinese Vice Premier Qian Qi-chen (錢其琛), who told a group of Taiwanese business leaders Tuesday that China would give priority to Taiwanese banks, local Chinese-language media reported.
China would allow Taiwan-based banks to directly open branches there and enjoy more leniencies than other foreign banks if Taipei approved the move before China's WTO entry expected later this year, he said.
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