The Chinese mainland and Taiwan are expected to sign The Economic Cooperation Framework Agreement (ECFA) on June 29. This is a significant event between the two sides in six decades, and will reportedly cut tariffs on a wide range of products.

Under this agreement, some 530 categories of goods exported to the mainland from Taiwanese companies will have favorable tariff policies, and mainland companies will enjoy such advantages on some 260 categories in the Taiwan market.

The agreement will also protect intellectual property rights for both sides and regulate the cross-Straits banking business, according to Xinhua News Agency.

The Association for Relations Across the Taiwan Straits (ARATS) in the mainland and Straits Exchange Foundation (SEF) in Taiwan have conducted three rounds of expert talks on the ECFA this year.

The two sides have reached an agreement on reducing barriers under the WTO rules in such areas as trade and investment.

With increasing exchanges and cooperation between the Chinese mainland and Taiwan, Fujian is playing a crucial role in promoting cross-Straits relations.

Now the provincial government is working to develop a Western Taiwan Straits Economic Zone, a national pilot economic zone for cross-Straits exchange and cooperation. Other efforts include the expansion of a national economic and development zone.

Approved by the State Council recently, the Xiamen Special Economic Zone in the province is set to extend to the entire city, including the four mainland districts of Jimei, Haicang, Tong'an and Xiang'an, a move to encourage greater progress in this region.

The zone, established in October 1980, is one of the five earliest special economic zones in China.

Facing the Taiwan island across the Straits, it is located at the Southeast coast of the province and covers a 131 sq km area. Xiamen has a 1,516 sq km land area, including the islands of Xiamen and Gulangyu.

Moreover, a regional cross-Strait financial service centre is also planned to be established in the city.

In addition to Xiamen, Pingtan in the provincial capital Fuzhou is also building an experimental zone for furthering cross-Straits economic and trade cooperation.

As one of the 10 largest islands in China, Pingtan is the nearest mainland county to Taiwan. It is expected to act as a bridge between Taiwan and the Western Taiwan Straits Economic Zone, which is listed by the State Council as a key development project in the province.

More Taiwan and overseas investors are also encouraged to bring in additional capital to this region.

Source: China Daily

Editor: Xu Xinlei