Taiwan’s service sector industries are expected to operate in China after a proposed trade pact is signed, an official familiar with the negotiations said yesterday.
Taiwanese and Chinese negotiators reached an agreement during the third round of talks on a proposed economic cooperation framework agreement (ECFA) to include the industries on Taiwan’s “early harvest” list to be granted market access by China, the official said. The third round of talks concluded on Sunday.
The industries include the conference sector, computer services, medical services, architecture and fashion design services, and the civil aviation equipment maintenance and repair industry.
China agreed to allow Taiwan’s air cargo firms to set up solely owned companies in China, exempting them from China’s regulations that foreign investment cannot exceed 50 percent of an enterprise’s total investment, the official said.
China’s opening up to Taiwan’s civil aviation sector will allow air cargo companies to capitalize on business opportunities related to direct cross-strait flights, he said.
With Taiwan’s higher standard of medical care, China also promised to let Taiwan medical institutions set up hospitals in areas with high concentrations of Taiwanese businesses, such as Guangdong Province, to allow them to expand operations in China and to care for China-based Taiwanese businesspeople seeking medical attention.
China, however, did not agree with a proposal to increase the number of Taiwanese films released in China. China only approves 10 Taiwanese films each year for cinematic viewing, the official said.
Meanwhile, the Mainland Affairs Council (MAC) yesterday reiterated the government’s goal to sign the cross-strait pact this month or early next month.
MAC Chairwoman Lai Shin-yuan (賴幸媛) said it remains uncertain how many items will be covered by the agreement’s “early harvest” program as discussions are still going ongoing.
Details will be made public as soon as they are finalized, she said.
In the third formal round of ECFA talks that ended in Beijing on Sunday, China agreed to Taiwan’s list of 500 items that will be entitled to preferential tariff treatment as soon as the ECFA is signed, in comparison to the 200-odd Chinese items accepted by Taiwan.
Chinese Premier Wu Den-yih (吳敦義) said on Thursday that the number of products on Taiwan’s list will be increased to around 510, while the number on China’s will be boosted to 260 or 270.
MAC officials said the two sides are currently reviewing the conclusions reached during the third round of ECFA talks and it remains unclear if they will need to hold a fourth round before signing the agreement.
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