Taiwan authority were told to remove restrictions hampering
financial cooperation across the Taiwan Strait and to allow local
banks to set up business outlets in the Chinese mainland.
Vincent Yen, president of the Taiwan Council for Industrial and
Commercial Development, said establishment of business branches by
Taiwan banks in the Chinese mainland would not only rescue
cash-strapped Taiwan-invested ventures out of their financial
doldrums, but also help improve their competitiveness globally.
"I believe if they are allowed to operate on the mainland,
Taiwan banks can also profit from the Chinese mainland's fast
growing economy, and have their size of business and
competitiveness boosted," said Yen, who was here to attend the 11th
China International Investment and Trade Fair, which opened in
Xiamen City, Fujian Province, on Saturday.
Taiwan authority has imposed many barriers to block off economic
exchange and trade development across the Taiwan Strait.
One of its restrictions stipulates that investments made by
Taiwan investors in the Chinese mainland should not exceed 40
percent of their respective net assets.
"With the restrictions in place, many Taiwan invested businesses
-- mostly small and medium-sized enterprises -- on the Chinese
mainland face difficulties in fund raising if they intend to expand
scale of business," said Yen, "the financial difficulty has been
caused as these businesses enjoy little fame and don't have
adequate credit guarantee in the Chinese mainland."
Taiwan authority bans the banking sector to open operational
organizations in the Chinese mainland.
"Without the platform of Renminbi business, financial
organizations of Taiwan could not provide Taiwan investors with
working fund needed by them to cover growing procurement from the
Chinese mainland," said Yen.
(Xinhua News Agency September 8, 2007)