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    China Business
     Jun 2, 2010
Mainland envoys storm Taiwan's shops
By Jens Kastner

TAIPEI - It was a scene that stunned millions in front of Taiwan's television screens in late October 2008. Broadcast in a never-ending loop, visiting Chinese official Zhang Mingqing, vice chairman of the Association for Relations Across the Taiwan Strait (ARATS) - mainland China's top negotiation body with Taiwan, was seen being pushed to the ground by a furious mob in the parking lot of a Confucius temple in southern Taiwan. Onlookers cheered as the roof of Zhang's vehicle became a trampoline for anti-China protesters.

One month later, after Zhang's superior Chen Yunlin, ARATS' chairman, arrived in Taipei, brutal clashes shocked a city that had not witnessed riots for years.

However, anti-China emotions have not run that high in Taiwan

 

since that period, and during the past two months delegations representing Chinese provinces and municipalities have been visiting Taiwan almost on a weekly basis. Nowadays, large groups of mainland officials travel the island without being hassled. Hundreds of agreements are being signed that will bring Taiwan's economy ever closer to mainland China's, and unlike two years ago anti-China demonstrations are not drawing significant crowds.
The mainland's envoys place huge orders of a wide variety of Taiwanese products. Even in southern Taiwan, the pro-independence opposition Democratic Progressive Party's (DPP) stronghold, local governments and businesspeople have been welcoming the spending power from across the Taiwan Straits with open arms.

Taiwan's opposition cries foul play. It claims that the nature of the visits isn't purely economic. According to the DPP, by sending envoys that represent Chinese provinces rather than China as a nation, Beijing manifests its claim that Taiwan is more or less a province of China.

"The Chinese government wants to create itself an image as the helper and the savior of the Taiwanese people through these procurement sprees," says Hsieh Huai-hui, deputy director of the DPP's Department for International Affairs, in an interview given to Asia Times Online. "Unfortunately, I am afraid that behind the visits lies a hidden political agenda."

Every provincial and municipal delegation that has been touring Taiwan during the past two months signed dozens of purchase agreements. Since there's a wide variety of Taiwanese industries involved, the orders are believed to bring benefits to large parts of the Taiwanese population. The envoys promised to buy everything from biotech medicine to flat panels, from food products to automotive parts. If there's something that all agreements have in common it's that they are likely to be to Taiwan's immediate economical advantage.

Faced with millions of dollars worth of Chinese direct investment, Taiwan's opposition naturally is having a hard time warning the public to be cautious. According to Hsieh, China's supposed philanthropy raises wrong expectations among the Taiwanese. Businessmen and farmers alike are attracted to the potential profits from trading with China's provinces directly, said Hsieh.

That Beijing's attempt to conduct a change of image bears fruit is proven by the fact that Chinese provincial and municipal delegations, unlike their national-level predecessors in 2008, travel Taiwan without encountering significant protests.

Early in April, Shanghai Mayor Han Zheng mingled with the crowd on Taipei's subway trains and put himself in a favorable light by distributing toys of Haibao, the official mascot of the Shanghai 2010 World Expo, to children receiving treatment for hearing difficulties. Apart from these public relations stunts, Han signed as many as 28 exchange and purchase agreements.

Two weeks later, Luo Qingquan, Chinese Communist Party secretary of Hubei province, who led a delegation of 1,000, opened the Taiwan-Hubei Week in Taipei. Hubei's delegation is said to have ordered Taiwanese products worth more than US$25 million.

A female representative of a Hubei company described in a way that likely led to a mouth-watering effect among Taiwan's producers of cosmetics that millions of Chinese consumers are eager to see Taiwanese cremes, shampoo and face masks on the mainland market.

Then, in early May came the governor of Fujian province Huang Xiaojing. According to the Chinese media, direct exchanges were established between no fewer than 100 villages and towns from each side. The province governed by Huang is of particular relevance since it lies just on the opposite side of the Taiwan Strait.

A forum was held where there was much talk about the cultural and ethnic connections Fujian and Taiwan have since many Taiwanese have ancestors who emigrated hundreds of years ago from Fujian province. The spoken Taiwanese dialect today in fact is known as the "southern Fujian dialect". The forum was ended with a contract signing ceremony for Fujian companies to invest in Taiwan. Governor Huang also visited Kaohsiung, but even in this traditional DPP stronghold, nothing happened that would have shown serious public resentments.

The largest orders were planned to be placed by a delegation from Shandong province in north China that arrived in mid-May. Purchase agreements for US$620 million worth of Taiwan's agricultural, chemical, textile and food products, electronic and machinery were expected to be inked.

Taiwanese president Ma Ying-jeou's government says it will sign an Economic Cooperation Framework Agreement (ECFA) with China in June. The plan which cost him considerable political capital earlier this year, seems to gradually be seen by the Taiwanese public in a more favorable light. Whereas Ma's approval ratings hovered at around 25% in February and March, his party, the Kuomintang, now claims them to be as high as 39%. It can safely be assumed that the procurement trips of Chinese province have played a role in the improvement in Ma's standing.

That a moderate China stance goes down well with the majority of the Taiwanese is something the DPP has also noticed. The hallmark aggressive tone towards China that the party has used since the former Taiwanese president Chen Shui-bian era has significantly softened. DPP under Chen has stubbornly refused to have any contact with Beijing unless the latter recognizes the island as an independent country.

But the current DPP chairwoman, Tsai Ying-wen, proclaimed recently that her party is willing to deal with China with no pre-conditions. Although she has been criticized by opponents within the party for abandoning the DPP's "Taiwan independence clause", most DPP members seem to have realized that a strict anti-China policy will now never get the support of the majority of Taiwanese voters.

According to Hsieh of the DPP's Department of International Affairs, there's nothing wrong with delegations from China's provinces visiting Taiwan. What she finds alarming is what the DPP calls a total lack of transparency. As the names and backgrounds of the delegates aren't being made public, nobody knows for sure who comes to engage in direct exchanges with Taiwan's local government officials and the business world. Hsieh can't believe that it's all people who have nothing but trade in mind as it is claimed. She worries that the delegations are infiltrated with China's political agents.

Hsieh expresses an opinion that is likely to be shared with many Taiwanese, nevertheless. She says, "China is so close to Taiwan and so huge. We want Taiwan and China to have very good relations, and we want to extend cross-straits trade. However, things would be much easier if China was a democracy."

Jens Kastner is a Taipei-based reporter.

(Copyright 2010 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)


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(Mar 24, '10)

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