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More efforts urged to realize 3 links
( 2002-09-09 10:05 ) (1 )

Vice-Premier Qian Qichen reiterated in East China's Fujian Province over the weekend that more efforts will be made to realize the "three direct links" between the mainland and Taiwan under the one-China principle.

The "three direct links" are the full opening-up of trade, transportation and postal services across the Taiwan Straits.

Qian toured Fujian Province, located across the Straits from Taiwan and visited Taiwan-invested companies in the province from Tuesday to Sunday.

He said preparation should be made for the realization of the "three direct links" and urged Taiwan authorities to take concrete steps for the "three links" and not create any more obstacles.

While visiting the companies, Qian encouraged Taiwan business people to invest and do business without hesitation.

No matter what happens, the legal interests and rights of Taiwan business people will be protected, he said, urging all local governments and departments to implement laws to protect Taiwan investment.

Qian stressed that any remarks and activities supporting the independence of Taiwan should be rejected decisively.

Early last month, Taiwan leader Chen Shui-bian said he backed legislation on a referendum to decide whether the island should declare independence and said the mainland and Taiwan should be "one country on each side."

Qian said such remarks, which were equal to the "state-to-state" relationship preached by Chen's predecessor Lee Teng-hui, openly challenged cross-Straits peace and the one-China policy.

Qian was also present for the Sixth China International Fair for Trade and Investment in Xiamen (CIFTI), also in Fujian.

Xiamen fair

Officials and industry insiders participating in the ongoing fair said that attracting more foreign direct investment (FDI) will help upgrade China's competitiveness.

"FDI has become an important drive for economic globalization," said State Councillor Wu Yi in a letter to the 2002 International Investment Forum held in Fujian on Sunday dubbed "FDI: To create international competition."

The fair is also regarded as an opportunity to attract investment from Taiwan and has always been held in Xiamen because of its proximity to Taiwan.

The State councillor also reiterated that China will continue keeping its foreign investment policies coherent and stable, while upgrading investment quality.

"We will work more actively to improve our business environment to attract more foreign investment," pledged Shi Guangsheng, minister of foreign trade and economic co-operation (MOFTEC).

Strenuous efforts have been made such as reducing the tariff level, demolishing non-tariff barriers, rectifying the legal system and standardizing the market order to create an open and transparent market environment, he said.

Figures from MOFTEC indicate that China absorbed US$424.77 billion in actual utilized foreign investment by the end of July.

Meanwhile, contracted foreign investment stood at US$799.65 billion. A total of 408,551 foreign invested firms were set up by the end of July.

Some experts even suggest China can attract as much as US$100 billion of foreign investment a year by 2005.

"We will not only attract foreign investors, but also encourage Chinese enterprises to take an active part in international competition and co-operation," Shi said.

"It is inevitable for us to go out to seek co-operation so as to upgrade our competitiveness," he urged.

China's foreign trade ranked sixth in the world with the volume reaching US$510 billion. Its foreign reserve topped US$246.5 billion by the end of July.

Now more manufacturing, such as electronics, is moving to China from other Asian countries because of its cheap labour and optimized business environment.

"However, China must constantly drive forward the process of modernization," said Lord Charles Powell, president of the China-Britain Business Council.

He said several key factors should be guaranteed if China wants to seek more foreign capital such as gradually lifting restrictions on foreign investor ownership restrictions, protecting intellectual property rights and continued banking and insurance reform and the liberalization of distribution.