Vice Minister of Finance Sean Chen (
Chen was referring to a report from Beijing that Shi Jiliang (
The news follows a trip by one of Taiwan's top banking regulators who visited his counterparts in Beijing, amid reports China may ease access to its market for Taiwan lenders.
Bureau of Monetary Affairs Deputy Director General Tsai Ching-nain (
China, which incorrectly claims Taiwan is part of its territory, will require Taiwan banks seeking to open mainland branches to accept its ``one China'' policy, a Taiwanese paper said.
Taipei refuses to embrace such a policy, seeing it as a political trap.
"Beijing is turning up the heat to force Taiwan to bow to its one China policy by offering incentives to Taiwanese businesses, laced with conditions," said Lin Tsui-pin (
China's huge market offers vast potential for Taiwan's banks, strapped for lending opportunities at home as a result of the slumping domestic economy here.
Banks also want mainland representation so they can service Taiwan businesses that move operations to China.
The Land Bank of Taiwan (
Shi's reported offer comes as Taiwan has promised to relax investment regulations.
"China has always maintained an open policy towards Taiwan's banks and financial services firms that want to establish branches on the mainland," said Wei Gejun, a senior spokesman at the People's Bank of China in Beijing.
"Taiwanese banks are treated the same way as those from Hong Kong and Macao."
To woo Taiwan banks, China plans to waive requirements for full-branch status, such as holding a minimum US$20 billion in total assets and running a representative office for two years, Chinese-language media reported.
Under the proposal, Taiwan banks will also be allowed to take deposits and offer loans denominated in yuan, local media said, but Taiwanese banks must accept Beijing's one China principle and applications must be made before China enters the WTO to qualify, local media said.
Taipei does not yet permit local banks to seek full branch status in China, fearing that an increased reliance on the mainland economy will make Taiwan more vulnerable to its rival if relations deteriorate further.
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