Business leaders yesterday welcomed an agreement between Taiwan and China to allow regular and faster cross-strait shipping and flight services, saying it would boost bilateral trade.
Envoys from the two countries inked a pact yesterday afternoon that will allow direct, regular air and sea links for both cargo and passenger services between designated sites.
Rock Hsu (許勝雄), chairman of Kinpo Group (金仁寶集團), said the opening would substantially enhance Taiwanese makers’ logistic competitiveness and allow them to deliver goods to customers within two days.
Cross-strait flights have been limited to the weekend and to five designated sites and planes have to pass over the airspace of a third country or region before heading to their destination. No direct cargo service by sea or air is available.
The new pact will make passenger flights available seven days a week, increase the number of flights from 36 to 108, add 16 more airports and eliminate the need to cross over a third area.
Hsu, who owns Compal Electronics Inc (仁寶電腦), the world’s second-largest notebook computer maker on contract basis, said the government’s plan to create free trade zones would have proved an empty slogan if it did not get China to open more airports to direct cross-strait flights.
“Taiwan and China can work together and emerge from the global economic slowdown unscathed by cashing in on the former’s design edge and the latter’s manufacturing capacity,” Hsu said.
Farglory Group (遠雄集團) chairman Chao Teng-hsiung (趙藤雄) said the two sides had taken a first and critical step by signing the accord.
Chao said the agreement could benefit cross-strait commerce, which could witness quick and significant growth in the near future. The construction tycoon urged the government to honor its pledge soon to allow foreign investors, including Chinese, to buy real estate in Taiwan, arguing the move will help bolster the economy.
“With capital inflows to the property market, real estate prices will go up,” Chao said. “Owners will enjoy greater wealth and spend more. The cycle will induce more business potential.”
Evertrust Rehouse Co (永慶房屋), the leading real estate agency, said the expanded direct links would help cut operation costs for Taiwanese and foreign firms with business across the Taiwan Strait.
Jeffrey Huang (黃增福), an assistant manager at Evertrust’s research and development department, said the opening will increase the willingness of foreign investors and Taiwanese businesspeople in China to set up operation offices in Taiwan.
The speedier cross-strait flights make one-day travel between Taiwan and China more convenient, Huang said, predicting that demand for office buildings will rise once the accord goes into practice.
Phoenix Tours Inc (鳳凰旅遊) said it expected easier cross-strait travel to bring in more Chinese tourists, starting next month.
Anthony Liao (廖文澄), general manager of the travel agency, said he expected the number of Chinese tourists to jump between three and five times after the two sides agreed to loosen restrictions for trips to Taiwan. Among the new changes, Chinese tourists may stay here from 10 days to 15 days.
Separately, local marine companies expected the much-anticipated opening up of direct cross-strait transportation to help local shipping companies lower their costs because of the more direct route.
Shippers said they were glad that the direct cross-strait shipping issue had finally been listed on the agenda, and predicted the agreement would have a positive impact on the cross-strait market worth US$120 billion a year.
At present, ships from Taiwan and China must navigate via a third destination, such as Japan’s Ishigaki Island, which adds up to US$20,000 in costs per voyage.
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