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China dangles carrots ahead of Taiwan election
Thu, Feb 28, 2008 The Straits Times
BEIJING - CHINA yesterday gave Taiwanese doctors more incentive to work on the mainland and announced new economic sweeteners ahead of Taiwan's presidential election next month. The invitation to Taiwan's doctors is targeted at those with more than five years' experience and who work in medical institutions. These criteria exempt them from further tests. Doctors from the island, which Beijing regards as a renegade province, were given the green light to work in China last year. But they were required to pass a test first.

Hence the need to relax the requirements, Mr Mao told the news conference held by the policy-making Taiwan Affairs Office (TAO).

A Commerce Ministry official also announced that four new business zones with preferential policies would be added to the existing four set aside for Taiwanese farmers to grow cash crops, flowers, fish or livestock.

China would also help Taiwanese-owned factories in coastal areas to cope with rising costs and shrinking margins and to upgrade to higher value-added production, Mr Zhou Ruojun of the Commerce Ministry told reporters.

He said the ministry was also helping Taiwanese enterprises to seek fresh opportunities in the country's vast central and western regions.

TAO spokesman Fan Liqing, who chaired the conference, pointed out that Chinese banks extended more than 230 billion yuan (S$45 billion) worth of loans to 6,300 Taiwan-owned firms on the mainland last year.

Chinese banks' financing for such companies had exceeded 700 billion yuan since 2004, she said.

China would continue to provide financing support to create a more favourable environment for Taiwan-funded companies on the mainland, she added.

The TAO has said that Beijing will not interfere in Taiwan's March 22 presidential election, which the opposition Kuomintang's Ma Ying-jeou is tipped to win.

Mr Ma advocates closer ties with China, unlike the incumbent government of President Chen Shui-bian.

Despite the rivalry between the two sides, Taiwan enjoyed a trade surplus of nearly US$80 billion (S$112 billion) last year and is becoming increasingly dependent on its giant neighbour.

Ms Fan blamed President Chen's ruling Democratic Progressive Party for dragging its feet on both opening up Taiwan to mainland tourists and allowing direct flights between the two sides.

China has claimed sovereignty over Taiwan since their split at the end of the Chinese civil war in 1949 and has sought to bring it back into the fold, by force if necessary.

In recent years, Beijing has switched tactics, using a series of economic sweeterners to win over ordinary Taiwanese while refusing to have any contact with the independence-minded President Chen.

REUTERS, XINHUA