Moves by the DPP government to relax its
cross strait policy following the Economic Development Advisory Conference sets the stage
for a further thawing of official Taiwan - PRC relations. The easing of restrictions will
pave the way for further bilateral negotiations following WTO accession. Current
conditions support a breakthrough, and this would serve as a significant upside catalyst
for the market.
In a meeting with KMT legislators, mainland Vice Premier Qian proposed
that the KMT establish a service center in the PRC to help facilitate cross strait
exchange. The overture provides some support for the splintered former ruling party in the
run up to the December legislative elections. The Chinese government is reluctant to deal
with the DPP due to its continued refusal to agree to the “one China” principal.
However, this offer from the mainland is another clear signal that cross strait exchange
(unofficial business-to-business relations) will continue to evolve with or without
official cross strait dialog. |
