Cross-strait economic links deepen

Source: CCTV.com | 12-15-2008 09:48

It's believed that direct flights and shipping links will have a profound impact on economic relations between the mainland and Taiwan significantly boosting economic exchanges and cooperation across the strait.

The Huarong Marine Group, based in south China's Fujian province, is one of the largest cross-strait shipping companies. Direct links between the mainland and Taiwan will significantly lower their operating costs.

Chen Weiren, Chairman of Huarong Marine Group said "The shipping route between Fuzhou and Keelung used to be 470 nautical miles, now the direct route will cut it to just 150 nautical miles. The costs will be lowered by about 50 percent."

Huarong is just one of the companies benefiting from direct links across the strait. It's estimated that direct routes will slash shipping costs by 100-million US dollars each year between the mainland and Taiwan. In addition to shorter transportation times and lower costs even more important are the potential benefits that closer economic and trade relations could bring.

Zhang Guanhua, Deputy Director of Institute of Taiwan Studies of CASS said "The 3 links have been considered a major potential way to normalize cross-strait economic and trade relations. Now that we've basically realized the 3 links, production materials and products can be exchanged directly. It's a big step in cross-strait economic and trade normalization."

Trade between the mainland and Taiwan has been growing at double digits in recent years and reached 124 billion US dollars in 2007. The mainland is the largest destination for Taiwan's goods, accounting for 40% of export volume. Experts say the direct links will speed up the flow of capital, resources, technology and talent across the strait. It will also stimulate two-way investment, expand industrial cooperation, and advance economic integration. These are especially important in the face of the economic downturn.

Zhang Guanhua said "Currently the global financial crisis is having a growing impact on the real economy. The demand for economic globalization and regional integration is pressing. In this sense, the cross-strait economic and trade ties have to become closer, even moving towards integration as a whole."

However, experts caution that this is only a first step. More effort is needed to establish the framework for further economic and trade cooperation, including financial cooperation and investment protection. But the direct links will significantly boost confidence among businesses on both sides looking to expand across the strait.

As planes and ships head off to travel directly across the straits, the situation that has prevailed since 1949 - whereby air and sea transport between the Chinese mainland and Taiwan had to go via a third place - has come to an end. It's down to the joint efforts of both sides, and the common will of compatriots of both sides of the Straits. Guaranteed by the 3 links, economic relations between the mainland and Taiwan will undoubtedly begin a new chapter.

Editor:Xiong Qu