China may offer incentives during cross-strait forum

This article was published by the Taiwan Headlines on April 10, 2006. It reports that during the forthcoming trade talks between the Chinese Communist Party and Taiwan's opposition Kuomingtang (KMT), China may announce a number of favorable economic incentives for Taiwan. The trade talks are scheduled to take place in Beijing on April 14.

According to this article, these economic incentives may include programs that allow Chinese tour groups to visit Taiwan, plans for the development of various special economic zones in Fujian Province on the western side of the Taiwan Strait, and expansion of free-tariff import of Taiwanese agricultural products. According to this article, China has incorporated the development of special economic zones on the western side of the Taiwan Strait into its "11th Five-Year Economic Development" project.

The project aims to accelerate the economic development of Fujian Province, so that it can catch up with the development of the Yangtze River Delta and the Zhujiang Delta special economic zones. Chinese authorities believe that the development of Fujian's economy has special significance for Taiwan, because of its affinity to the island in terms of geography, economy and ancestral lineage and customs.

The aforementioned trade talks between the Chinese Communist Party and KMT will focus on economic issues. Five major topics will be economy and trade, finance, tourism, direct transportation link, and agriculture. The 170-member KMT delegation will consist of 50 representatives from Taiwan's major enterprises and over 90 Taiwanese businesspeople in China. Chinese President Hu Jintao will meet with Lien Chan, honorary chairman of KMT and leader of the Taiwanese delegation, before he departs on a five-day visit to the United States.