Taiwan, China ease ocean travel restrictions, could impact trade

Taiwan, China ease ocean travel restrictions, could impact trade Taiwan government officials said last week there is likely to be an expansion of shipping links to China following historic talks between the two rivals aimed at easing tension and boosting economic ties, according to a report Friday by news agency AFP.
   It’s the second tangible change in a month under new Taiwanese president Ma Ying-jeou, who rode into power promising he would reinvigorate Taiwan’s sagging economy by tapping into the potential of its powerful neighbor. Earlier in the month, Taiwan and China began allowing direct weekend passenger flights between major cities to boost tourism. Many business leaders in Taiwan believe direct passenger transportation links will lead to more business between the mainland and Taiwan. They also have said it would boost Taiwan’s profile as a place for manufacturers to headquarter their operations if travel restrictions were eased.
   Easing of travel restrictions for passenger might also herald an era where there are fewer barriers to trade between Taiwan and China. Taiwan limits foreign investment into China and by Chinese companies into Taiwan, and also restricts Chinese exports into Taiwan. Goods have to be routed through a third-party location, such as Hong Kong.
   The change agreed upon last week “will enable all Taiwanese with valid transport documents to travel by boat from the Kinmen and Matsu islets to Xiamen and Quanzhou in China’s southeast Fujian province” across the Taiwan Strait from the island, the AFP report said.
   Despite the tensions between the two governments and Taiwan’s attempts to restrict trade, China has become Taiwan’s leading foreign investment destination, with an estimated $150 billion in mainland projects funded by the island’s businessmen so far. China is also Taiwan’s largest export market, the APF report said.