Co-op between Taiwan and Shanghai FTZ proposed

The mainland and Taiwan could first reach a consensus on FTZ cooperation, and then further discuss detailed cooperation mode, suggested Sun Zhaolin, deputy head of the Department of Taiwan, Hong Kong and Macao Affairs under the Ministry of Commerce.

Under the cross-Strait Economic Cooperation Framework Agreement (ECFA), the two sides can initiate some major projects to form strategic alliance so as to jointly participate in global competition, Sun said.

Liu Meng-jyun, a researcher with the Taiwan-based Chung-Hua Institution for Economic Research, said that by conducting FTZs cooperation the mainland could take advantage of Taiwan's human resources and technology to develop projects such as medical care and industrial cooperation.

The mainland could also learn from Taiwan's rich experience in financial systems to push out new Renminbi (RMB, the Chinese currency) financial products and promote the outflow of RMB from the Shanghai FTZ, which is also conducive to turning Taiwan one of the key offshore yuan centers, Liu said.

In the proposals, participants urged the two sides to deepen financial cooperation by further opening their financial markets, jointly maintaining the markets' stability and building financial institutions on both sides to enhance exchanges.

The mainland and Taiwan should strengthen cooperation in technological industries, especially in the development of new energy, renewable energy and biotechnology, and strive to build platforms for technology exchanges, such as research and development centers and high-tech parks.

Participants also called on the two sides to further push forward cooperation in such sectors as culture, film, publishing, education, agriculture, medicine, as well as tourism and youth exchanges.

Wu Poh-hsiung said the cross-Strait economic cooperation has further deepened since the signing of the milestone ECFA in 2010.

Goods covered in the ECFA's early harvest program have realized "zero tariff" across the Strait, while the latest Service Trade Agreement inked in June further opened the service sectors to each other, according to Wu.

Echoing the proposals, Wu urged the two sides to accelerate negotiations for a goods trade agreement and a dispute settlement agreement as well as follow-up negotiations for the ECFA.

About 350 officials, scholars and representatives of various industries from both sides attended this year's forum. Discussion and proposals initiated at the forum often provide an important reference for policymaking by the two sides.