The Taiwan government plans to allow Taiwan banks to indirectly do business with Chinese banks, a newspaper reported on Thursday. ( dpa )
The Economic Daily News (EDN), quoting an unnamed official, said the government will announce the decision within two weeks, ahead of the March 22 presidential election, a move that could boost the ruling party candidate's chance of winning the election. "Financial regulatory departments have drawn up the plan to let Taiwan banks do business with Chinese banks via overseas banks, and are waiting for the Cabinet's approval. The Cabinet is expected to give the approval next week or the week after the next," EDN quoted the official as saying.
The first Taiwan bank to benefit from the lifting of the ban would be the Fubon banking group, which plans to take a 20-per-cent stake in China's Xiamen City Commercial Bank, through Fubon's branch bank in Hong Kong, the paper said.
Meanwhile, Taiwan also plans to ease Taiwan-China tourism restrictions by allowing Taiwanese to go to China's Fujian Province for sightseeing via Taiwan's offshore island Kinmen.
That decision is also expected to be announced within two weeks, the unnamed official said.
Because of Taiwan's ban on air and sea links with China, when Taiwanese go to China for sightseeing, family reunions or business, they must travel to China through a foreign country or Hong Kong.
Allowing Taiwanese to make sightseeing trips to Fujian via Kinmen, a Taiwan-held islet off China's Fujian coast, could save Taiwan tourists' time and money.
Taiwan is to hold presidential elections on March 22 to replace President Chen Shui-bian, who will step down after two four-year terms.
The ruling party's candidate, Frank Hsieh, is lagging behind his rival, the opposition party's Ma Ying-jeou, by 10-30 percentage points, according to public opinion polls.
The low support for Hsieh reflects disapproval of Chen's administration's corruption scandals, worsened economy and strained cross-Strait ties.
The lack of support has prompted Chen's government to prepare to ease restrictions on trade with China, as Ma has promised that if he wins, he will immediately lift the ban on sea and air links with China and open the door to Chinese tourists.