Regulations governing trade between Taiwan and mainland China have been further eased following new rules concerning direct remittances between banks in the two territories announced last month (DC World News, 16 July 2002).

New measures approved by Taiwan's Ministry of Finance now permit offshore banking centres and overseas branches of domestic banks to issue letters of credit (L/Cs) and letters of authorities and open offices in mainland China.

Closer ties

The measures aim to stimulate and strengthen economic exchanges between Taiwan and mainland China and provide better access to capital for the growing number of Taiwanese-owned enterprises operating on the mainland.

Measures introduced last month allowed overseas branches of Taiwan-based banks, offshore banking centres, foreign exchanges, certain banks and post offices to make and receive direct remittances with branches of foreign banks in mainland China, mainland Chinese banking institutions and their overseas branches, as well as mainland institutional investors and private individuals.

No political thaw

Closer trade and investment ties are not mellowing Chinese opposition to calls for Taiwan's independence from China. The Chinese authorities have once more rejected leader of the Taiwan authority Chen Shui-bian's calls for a referendum to decide on whether the country should be independent or under Chinese rule.

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