One of Taiwan's greatest hopes when it joined the WTO was that it would help solve thorny trade issues that plague relations with China.
Now, nearly a year later, the nation's first representative to the trade body knows how difficult it is to get his Chinese counterpart to sit at the same negotiating table.
"Taiwan is a full member of WTO and has very encouraging working relationships with all other members... except China," lamented Yen Ching-chang (
When Taiwan and three other WTO members complained about China's steel tariffs, the Chinese held bilateral discussions with each member except Taiwan. And only after Taipei threatened to lodge a formal complaint did Bei-jing write a letter to Yen. But, in Chinese -- not an official WTO language.
"China still refuses to treat us as an equal. That is really the most important obstacle for possible dialogue on three links," Yen said.
Direct links do not directly fall under the auspices of the WTO, but the rapid growth of commercial ties between Taiwan and China this year have raised hopes of progress on that front.
In anticipation of such links, investors have pumped up Tai-wan's transportation shares about 30 percent since a rally began in early October, outpacing the bellwether tech sector's 22 percent gain.
Fueling the optimism are recent comments by Chinese leaders that talks on direct links could be considered "cross-strait" and not "domestic."
Taiwanese firms have invested some US$100 billion in China since the 1980s, making it probably the second largest investor in China behind Hong Kong.
And this year alone, banks in Taiwan have set up representative offices in China for the first time, while the first shipment of Chinese corn landed in Taiwan this month.
In the first 10 months of 2002, Taiwan exports to Hong Kong have jumped 14.3 percent from last year to $25.4 billion, replacing the struggling US economy as the nation's largest customer.
Practical business considerations may be pushing the two sides to figure a way to discuss mutually beneficial bilateral issues.
"With the cost and time savings [of direct links] there will be more efficient allocation of resources on both sides of the straits," said Franklin Poon, an economist with ABN Amro based in Hong Kong.
"The bottom line is more efficiency," Poon said.
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